Rules for Transaction Minimums & Maximums
We all know merchants who have signs taped to their registers with minimum amounts for using a credit and/or debit card. You may have seen more of these pop up at small ticket merchants since regulated debit interchange took effect in the Fall of 2011.
Apparently, cardholders have taken notice as well. We have experienced an increase in notices from Visa about merchants who violate the rules regarding minimum transaction amounts. As a reminder, Visa and MasterCard established the following rules for setting minimums:
- Merchants may impose minimums on credit card transactions
- Merchants may not impose minimums on debit card transactions
- Minimums on credit card transactions must not be greater than $10
- Minimums cannot differentiate between payment card brands
When it comes to transaction maximums, only the following merchant types can set a maximum transaction amount on credit card purchases:
- An agency of the U.S. Federal Government
- Merchants that fit into one of the following Merchant Category Codes (MCCs):
- MCC 8220 - Colleges, Universities, Professional Schools, and Junior Colleges
- MCC 8244 - Business and Secretarial Schools
- MCC 8249 - Trade and Vocational Schools
By following these rules, merchants can help ensure that they're in compliance with card association rules. If you have additional questions about transaction minimums and maximums, please contact us.