The Red and Black

Issue date: 9/11/08 Section: Opinions

KYLE THOMPSON

I recently received my very first credit card purely for the convenience of the device. It's easy to present a credit card to pay instead of having to get out and count dollar bills, or risk not having any cash in your wallet at all.

However, not everyone seems to think credit cards are the right choice of payment.

Have you noticed that many bars in Athens enforce a $10 minimum purchase when you choose to use your credit card?

After experiencing this on multiple occasions, my convenient card was no longer the easiest way to pay. I checked into it, and what I discovered proved interesting.

Visa and MasterCard say it is a forbidden policy for merchants to charge a minimum amount for card use.

Credit card companies rely on convenience as a significant driving force for their services.They want you to be able to use your card just like cash.

When merchants sign contracts with Visa and MasterCard, they agree to follow certain rules, one of which targets minimum purchase policies.

According to Visa, merchants are not permitted to establish minimum transaction amounts, even on sale items. They also are not allowed to charge a fee when you want to use your Visa card.

MasterCard has the same policy.

Thus, bars and establishments that require a $10 minimum amount for using a credit card are in violation of a contract agreement and are engaging in unacceptable consumer policies.

Although it is not illegal on a criminal basis, minimum purchase policies could be viewed as a method for scamming their customers.

It happens all the time. I witnessed it Friday night at an Athens bar.

After questioning the bartender, he tried to tell me they do it because credit card companies charge them around 20 to 25 cents per transaction.

This is true, but this is agreed upon in the contract merchants sign.

Minimum purchase amounts are forbidden, and 20 cents in no way equals $10.

In the end, I was not charged the $10 minimum for my drink after I spoke up in my own defense about it.

A couple days later, I spoke with the owner of a popular Athens bar, who said it is not polite to use your credit card to purchase one or two drinks.

I assume he believes this because of the 20 cents he has to pay for the transaction.

But it seems to me that 20 cents ought to be covered in the $4 price tag of a scotch on the rocks.

Now I understand that many people will automatically spend more than $10 on alcohol, but if they are into bar hopping, they might not be in one place very long.

Don't let these establishments rip you off.

From one consumer to another, be responsible and keep an eye on your pocketbook.

- Kyle Thompson is a senior from Winder majoring in economics and geography.

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