Minimum card spend


(Punit Mannari) #1

Just been to the corner shop. Bought some sausages for 2.30…the owner of the shop did not want to take my card as he said min payment by card is 3 pounds…his he allowed do do that?


Shops And Minimum Order
(Jack) #2

Unfortunately yes they are.

They can set minimum payments but can’t charge you a fee on top to pay by card.

Luckily it’s becoming more rare.


(Punit Mannari) #3

But there is no sign for the min payment at the shop


(Jack) #4

I’m not sure if they need a sign, but it should be clearer imo. I generally avoid places like this as it’s rather inconvenient as you’ve noticed.


(Emma (still not the app)) #5

£2.30, I’d say you were lucky. Those are some expensive sausages

A sign isn’t a legal requirement although it’s common curtesy


#6

There’s no law against it, but it is technically against the Mastercard merchant agreement (though I don’t have a primary source for this).

Unfortunately, Mastercard don’t enforce the rule and it’s very common amongst small shops :frowning:


(Punit Mannari) #7

To be honest they were garlic flavoured sokolow polish sausages


(Emma (still not the app)) #8

Ok, they were worth it then. I retract my sausage shaming :grin:


(Punit Mannari) #9

Lool…there is about 15 in a pack…ready to eat hot or cold…just taking the casing off


(Punit Mannari) #10

The problem is I could not even withdraw cash at that point so had to come empty hand


(Tom ) #11

I really don’t understand this. For my day job, it’s more expensive to process cash than a contactless payment, and the reason I scrapped minimum card payments.


(Brexit Day Is Gonna Be Shamayzing.) #12

My local have now decided on a £5 min, I only wanted a bottle of Pepsi (£2.39). I left and went to Tesco over the road and got it cheaper (£1.95).


(Punit Mannari) #13

Do the small shops have to pay a fee for every transaction?


(Emma (still not the app)) #14

2 shops in my village, 1 has a £3 minimum and a no cash back policy, the other doesn’t. I go to the one that wants my money


#15

Yep usually 20-40p plus a percentage 2-3%
Big customers negotiate more favourable rates


(Sacha Zarb) #16

Suspect, there’s no margin below £3 for a lot of smaller shop once the payment service provider has there slice. Worldpay, Barclays and Global are the big ones and you need scale to push the fees down.


#17

One of my two local Londis do this. Pretty annoying so just went to coop, it’s so much cheaper too as I have member discount and student discount.


(Tom ) #18

Those are very outdated fees. It’s now typically 0.75% for debit cards. The rise of contactless meant a wholesale rethink of pricing.


#19

Luckily small shops and food trucks are moving to products like iZettle which charges a flat 1.75% fee (and even accepts Amex).

When this occasionally happens to me I just offer to pay 50p for the privilege of paying by card.


(Punit Mannari) #20

So I would have thought that tesco etc might have deals with the merchant