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Bars requiering minimum purchase, forcing people to drink more?

The other at America's oldest Tavern, the Bell in Hand I noticed signs all around the bar notifying patrons of a $25 minimum for credit card purchases. After ordering two beers ($10) I realized I was short on cash and handed my plastic over to the bartender. She shook her head and pointed to the sign. Explaining I didn't have any cash to pay I again offered her the card and said I'd talk to the manager if she was really going to enforce this ridiculous policy.

Something doesn't seem right about this. How can a bar "force" a patron into buying $25 (5 of their cheap-o bud lights). I know I have the option of paying cash or choosing not to give them my business, but practically speaking most people go to a bar like this to drink. Policies like this are dangerous, but are they illegal?

It appears the policy is in violation of Visa and Mastercard's merchant terms. When I attempted to report them to Mastercard the form only managed to produce a javascript error.

In the end the bartender reluctantly snatched the card from me and ring it in anyway. I have to wonder how many intoxicated people are being taken advantage of and buying more drinks than they normally would.

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Comments

I can see where a gas station with a razor-thin profit margin on fuel would disallow credit card purchases for gasoline (upon which the station has to pay to take the card), but there's little excuse for a tourist trap bar to do this.

I've seen bars (and takeout pizza shops) establish a $10 minimum for credit cards, which is a fair and established standard practice. $25 is egregious.

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I personally like the policy a few local places have adopted. If you charge less than a certain small amount, you get a $0.50 processing surcharge tacked onto your order.

So if you're out of cash, don't carry cash, or don't have quite enough, you can still buy only what you want. It's transparent and honest.

While CC minimums are frowned upon by car issuers, I'm not going to report some Mom and Pop for hitting me up for two quarters to help them stay in business. $25 on the other hand...

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Minimum Balances and Fines are illegal in MA. Reporting them to the card issuer is the right thing. I had to report a local restaurant for charging me a $1 "service fee" for not ordering $20 or something, but the money was refunded to me, and the company has since changed their policy. CC companies come down hard on these places.

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I think reporting does work. A while back, at a local sub shop I used to go to, I thought I overheard the owner say to a pair of customers that it would be an extra dollar to pay by credit card. I had paid with cash, so it didn't come up. Weeks later, when I had a larger order, I tried using a credit card, but was told they were cash only. So I'm guessing they got their service pulled?? Unfortunately, the shop is now closed. And, no, I did not report them.

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The gas stations in my area all take credit cards and got around that razor thin margin problem by giving a discount to people who use cash. So feel free to use your credit card, get it for 10 cents less if you use cash. I still use my credit card because ultimatly it would be more of a hassle to always carry 50 bucks in cash around with me for gas when I can just spend the extra dollar twenty five and use my credit card.

I can see a 10 dollar limit because it does cost them a little bit to take the card, and it takes more time to process. Twenty five is definitly extreme and I would have made a big fuss about it too. For one person thats at least 3 drinks ( and thats at 8 dollars a pop, and still only hits 24) which in some cases is definitly enough to get some people quite tippsy.

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If you want to report them, here's a non-Javascript-error way. For Visa, you are asked to start by contacting the issuing bank on your card, and they will help you lodge your complaint. If you don't want to go the Phone route, try to bypass all the phone jockeys with this email address: [email protected] .

For MasterCard, stick with the phone. 1-800-300-3069. Press 1 for Cardholder, then 3 for Merchant Violation. They will refer you to the website, but you can press 0 to leave a voicemail. You will need some info, like the following:
Bell in Hand Tavern
45 Union St
Boston, MA 02108
(617) 227-2098

You will need to provide details of the violation, such as when you were there, what they said, yadda yadda yadda.

Good luck. Also, you can always call Debbie at the Bell, and let her know your complaint. She owns the joint, so you can at least give her the chance to take the sign down be fore you go any further. If she stonewalls, or refuses, report away.

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They are not allowed by the credit card companies and are a breach of the merchant's contract with them. I know of someone who owns a sub shop whose contract was suspended by both Visa and Master Card for violating the terms of his contract with them. His business also had to pay a reinstatement fee with Visa and MC. It is a bad idea for any merchant to require a minimum purchase amount.

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Aside from the obvious issues of requiring minimums on alcohol purchases, businesses should not be treating their customers as accountants and playing these stupid games of minimums, processing fees, and cash discounts. Running a business costs money and credit card fees are part of doing business. If you aren't making enough to cover your costs then you aren't charging enough in the first place. Imagine if your local sub shop started adding a 50 cent fee to pay their rent or utility bills.

While I do have more sympathy for a local shop that may be struggling I really don't for a rather large and popular establishment that is already charging $10 to walk in the door on top of a ridiculous minimum purchase.

Thanks for the suggestions I'm look into them this week. I only wish I had taken a picture while I was there.

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but there's little excuse for a tourist trap bar to do this

Speaking as someone who is charged as much for a glass half full of ice and some high-fructose-corn-laden shit as an entire jug of organic juice...there's no excuse for ANY bar to do this.

The profit margins in the bar industry are probably the highest around. Alcohol is just a legal drug...

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I could be wrong, but I believe that most (if not all) of the agreements with the credit card companies forbid "minimums".

They are not supposed to do this.

I have seen hand-made signs near registers that say $10 minimum for credit cards. (I've never seen $25!)

Usually these are at mom & pop stores and bodega-type restaurants....that get away with it.

I believe once the sale is below $10...with the discount that CC's take off the top from each transaction....that the profit starts to dissappear.

I would LOVE to know about how to report these infractions...as my favorite little hole-in-the-wall restaurant in Chinatown has one of these signs.

Anyone know how to report it...so that the infraction goes to the right person?

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I've seen signs that, taking the merchant agreements into account, request that customers limit card use to transactions over a certain amount. In those cases I will honor their request; I know they take a hit on small transactions.

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When Im in walgreens I will literally charge a bottle of water to my credit card... local store they get my cash. Sometimes the fees really add up for them so I dont really want to be the guy who has them work to ring up my stuff only to have them make 5 cents off of the deal, doesnt seem fair, regardless of who has agreed to what with the credit cards. Theres legal and theres right. Of course 25 is way too much money for a bar, and irresponsible, especially since that liquor they just poured is marked up 1,000 percent in some cases lol.

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