Is it illegal to have a spending limit for a card payment?

[ChangesAt30]

I work in retail and just had a lady in buying a greetings cards, £2.49. She gave me her bank card and I apologised and said that it was a minimum of £5 for a card payment which she told me was illegal? 🤷‍♀️

I've never heard this before, but to me it makes sense to have a minimum spend because of the fees we pay to the card company. And I'm pretty sure we can essentially refuse any sale we want.. But was she right?

It's too hot to argue so I (politely) told her that £5 was my minimum and would she like to pay with cash or leave the card on this occasion and she gave me the cash.

No it's not illegal, but it's good practice to have a sign up saying what your limit is, so that customers are aware.

It’s not illegal to have a minimum spend on card payments, no

You’re not allowed to charge a fee for card usage anymore though

She's probably thinking of this.

www.google.com/amp/s/www.bbc.co.uk/news/amp/business-40655333

Thank you both!

I was almost certain she was incorrect (she even said to me, 'I know things like this, I'm a clever clogs' 🙄) but wasn't 100% and didn't want to get into it.

@Ribenaberriesgowoo82 yes possibly was getting the two mixed up!

If she comes back in I'll feel armed with correct knowledge

Lots of small shops have a minimum card spend, otherwise they can't afford to cover the transaction. Large shops can afford to loose money if someone spends 20p on a card.

@Kpo58 I did say that to her, tried to explain that by the time we'd covered the cost of the card, the bag she requested I put it in and the payment to the bank, it wouldn't be worth us having the sale. But still she said, 'it is illegal though'

There's a reason I'm looking to get out of customer facing roles

It's not against the law, but it is not allowed under the T&C's of either visa or mastercard. Both of those card issuers do not allow any shop accepting their card to apply a minimum charge.

www.mobiletransaction.org/should-you-set-a-minimum-for-card-payments/

So the customer was correct that you are not allowed to apply a minimum charge if she was using either of those cards, she just had the wrong reason.

Not unusual practice. If there was no cash in society you can bet that charges would be increased, so even keeping a small level is a form of competition.

It's the same as people who increase the cost of an item if you pay by PayPal so they can covet the fees. PayPal terms and conditions do not allow the seller to pass the transaction fee onto the buyer. But people still do it because no one bothers to report them.
If you agree to accept certain cards, you cannot impose a minimum spend. If you are reported to for merchant for doing so, then they are obligated to investigate and block your account.

Thank you Alanna! Most interesting!