Merchants Starting to Refuse Small Credit Card Purchases

In the coming weeks, you may no longer be able to buy small items that cost less than $5 or $10 with your debit or credit card. The Dodd-Frank act was supposed to help all businesses by capping the fee credit card companies can charge for any transaction. The fee used to be about an average of 44 cents, but now the fee is about 21 cents.

This sounds like a positive move, but now the companies will no longer give a discount on smaller purchases. This can have a deep impact on stores that sell smaller, cheaper items. One way for businesses to avoid these fees is to stop accepting cards for purchases less than $5-$10. However, this might alienate a large portion of their customers.

This appears to be another law that is aimed at helping business owners, but really seems to only help big business.

Source: http://www.valleynewslive.com/story/16222654/financial-overhaul-fiasco

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