Given that we’re all supposed to use contactless payment wherever possible now, AIBU to think it’s a bit shit to have minimum spend amounts?

[AngeloMysterioso]

I try to use small and independent local businesses wherever possible but I’m getting quite tired of having to meet (sometimes quite high) minimum spend amounts.

Example- lovely local greengrocer, went in for a piece of ginger, £2.40. Minimum spend- £5. I put it back and went to M&S where the same sized bit of ginger was half the price and that was all I had to pay.

This is particularly annoying given that at the moment everyone is encouraged to use contactless or card payments as it is more hygienic than cash. I know there is a fee applied to card payments but surely these independent businesses are going to drive away customers if they insist on passing it on? I really like the greengrocers but I’m not going to waste money on things I don’t need if I’m not getting £5 worth of stuff whenever I go in there- I’ll just go to the supermarket instead.

I hear you OP, it is irritating. Not sure why everybody is getting at you. We all know the reason, and that we have other options, but it doesn’t mean it’s not annoying 🤷‍♀️

Its actually not the banks that charge the fees, its the businesses card services provider, who process the payments, debiting customers bank and crediting business bank, our charges a flat fee and a % of the transaction, and since covid the charges have gone up if you are not in a contract (which luckily we are) and the charges are usually higher if its a credit card or business card, so each transaction can work out quite costly if its small ticket items.

£2.40 is a lot of ginger! (I know that's not the point)

Blackhawkdown2020 they'd hardly make anything on £1.29 so not worth it

I thought they'd changed the rules and it was now illegal to penalise use with a card ?

Visa and MasterCard don't allow retailers to set a minimum spend there are no such rules with Amex. You can report the retailer to visa or MasterCard and they can withdraw the ability for that retailer to use their cards for transactions.

I was going to use Apple Pay if that matters, but the card it’s linked to is a Visa debit. The minimum spend is for all card payments, doesn’t matter what kind.

@Nohomemadecandles it wasn’t even that big a piece, it’s a fairly pricey greengrocers anyway- even without the minimum spend! A punnet of local strawberries is about £4.

@whatthejiggeries

I thought they'd changed the rules and it was now illegal to penalise use with a card ?

A retailer can't charge you a fee for using the card, but they can set a minimum.

As others have said, the villains are the card processing firms - charging extortionate fees to small businesses for low value transactions.

I really can't blame small retailers for setting a minimum in order not to be losing money.

I still keep a small amount of cash for this type of thing, it's not the end of the world.

@Twinkie01

Visa and MasterCard don't allow retailers to set a minimum spend there are no such rules with Amex. You can report the retailer to visa or MasterCard and they can withdraw the ability for that retailer to use their cards for transactions.

Oh great.

@Twinkie01

Visa and MasterCard don't allow retailers to set a minimum spend there are no such rules with Amex. You can report the retailer to visa or MasterCard and they can withdraw the ability for that retailer to use their cards for transactions.

Great, then the OP would have to pay cash anyways.

A family member has a small shop and their card machine fees can be up to several hundred pounds a month. That’s a days takings sometimes. I work there on the weekends and have noticed a lot more people using cash now. Not just small purchases either.

Get the cash out then put the change aside for next time you need something from there.

While I see what you are saying and agree with you in theory.
I blame the banks for making a charge, they could help small businesses but wont so you'll just have to use cash.
What annoys me more is tesco in particular taking away paying by cash in 99% of their self service machine then moaning that people pay with cash at the till.

@AngeloMysterioso it's about £3 a kilo in mine! I'll post you a knob a month

Yanbu, businesses need to come to terms with the fact that hardly anyone uses cash anymore and these policies will put people off. It’s not like there aren’t costs associated with cash either.

My local fish and chip shop is now cash only because of extortionate card charges.

Can businesses afford for potential customers to walk out and not go back?

Also, is cash that "free" to handle for a lot of businesses now? The banks charge for handling and also, good luck with finding branches that are actually open these days.

Loads of small shops take a phone payment for small amounts? I do it all the time.

@Pazuzu

Can businesses afford for potential customers to walk out and not go back?

Also, is cash that "free" to handle for a lot of businesses now? The banks charge for handling and also, good luck with finding branches that are actually open these days.

If every customer pays for a £2.40 item with a card and the card charge wipes out the profit they probably have no choice.

I would find it inconceivable to leave the house without cash in my purse but if you don't then you have to deal with the consequences of that, ie have to go to two shops for a bit of ginger.

I can't remember the last time I used cash for anything apart from the bloody pta. I don't carry it, don't need and shop on plenty of local shops. Even my window cleaner has a card machine. I'd rather the retailer upped their price by the 1.6% for Sumup than have to carry cash

@idontlikealdi

I can't remember the last time I used cash for anything apart from the bloody pta. I don't carry it, don't need and shop on plenty of local shops. Even my window cleaner has a card machine. I'd rather the retailer upped their price by the 1.6% for Sumup than have to carry cash

Me too. I pay my window cleaner through PayPal.

I don’t even take my purse out anymore! I just put my card inside my phone case.

@Angelo I know exactly what you mean. I never seem to have any cash on me anymore and had to dash into a chemist the other week for an 'emergency' (don't ask!). What I needed was £4.59 but they had a minimum spend of £5 so I ended up just grabbing the nearest thing to make up the value.

I use my phone. Don't even use a handbag any more!