Can merchants require a minimum purchase amount that they accept credit card payment for?
Technically No! The major credit card networks (VISA, Master Card, Discover, and American Express) prohibit their merchants from setting a minimum purchase amount. As a merchant, I was told that if a customer presented their debit card and did not use their PIN number that it is possible for the merchant to be at risk, if at the close of business day batch-out if the customer did not have the funds in their checking account. Is there any validity to that? Could I as the merchant be at risk and if it does, if I do require the usage of a PIN pad 4 digit code, would that protect or automatically secure a guarantee payment? If the debit card transaction was authorized then it will be paid regardless of the funds in the checking account. The risks associated with signature-only use of debit cards is the same as credit cards.
