Question:
I recently went into a shop, and wanted to pay with my credit card. I was told that there was a minimum purchase amount of R50. Is this allowed by Visa and Mastercard in South Africa? (According to a number of websites it is not allowed in the USA). If it is not allowed, how do I report this?

Answer:
Requesting a minimum purchase on a credit card is not illegal but it is in violation of a merchant’s contract with the credit card company.

In addition it is also a violation if a company tries to place a surcharge on your purchase if you use a credit card. You should try and find out which bank granted the merchant status and then contact them with the information.

It is no good contacting MasterCard or Visa directly; they will simply refer you back to the bank's credit card division.

In the merchant's defence, the commissions charged can be high, especially with smaller volume retailers. However, they accepted the terms and conditions of the contract and if they get stung occasionally by a small purchase, so be it.

Adhere to the rules

The convenience and safety of a credit card far outweighs the cost of commissions, so they should adhere to the rules.

On a personal note, I stopped at my local garage to fill up with petrol but left my petrol card at home. So before I filled up, I asked the attendant if the ATM machine was working so I could draw the cash. He said it was fine and proceeded to fill my car. When I got to the ATM it was out of order.

I went into the garage and explained what had happened. The owner said I could use my debit card. When I got the receipt I saw that there was an additional amount of R14 on the bill. When I queried it he said that was the charge for using my debit card.

I told him he was in violation of his merchant agreement and demanded a refund.

If you make them aware that you know your rights, they will eventually have to comply. Retail businesses are extremely dependent on credit card facilities and only a foolish person would challenge you head on if you threatened to call the credit card company.