More Small Businesses Setting Minimums on Credit Card Purchases

AURORA, Colo.-Most consumers do not realize the high fees involved in small businesses being able to process credit card payments. Many stores, including Bliss Cupcakes in Aurora, now has a $5 minimum purchase if paying by credit card.

The owner, Brandy Fogleman, shares her thoughts on credit card purchases, “It’s a lot more work than we thought it would be, that’s for sure. There’s a lot of stuff that goes on in the back end that you really don’t know about until you have to deal with it.” Bliss has been in operation for two years, but after only two months, Folgleman instituted a credit card policy. She said that it saved the company $700 in the first month.

It is legal for a business to post a minimum purchase amount. The Dodd-Frank Act of 2011 allows merchants to set minimums. Fogleman states even with the minimum, credit card fees still cost the business between $1,000 to $1,800 a month.

Source: http://denver.cbslocal.com/2012/05/25/businesses-set-minimums-on-credit-card-purchases/

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