For each credit card transaction it costs the merchant a lump sum per each transaction, some of them are as high as 2.50, they have a minium transaction on store bought purchases, because, else they would loose money on the markup of the item, and then the merchant fees. AMEX charges merchants ALLOT

From what I understand, most credit card operators (Visa, American Express, Mastercard, etc) include a clause in their merchant agreements that outlines the rules on imposing minimum/maximums for credit use. Because credit operators encourage the use of credit, merchant agreements generally ban mimimum purchase requirements. It's pretty common to see mimimum purchase policies in small businesses, as GoodFTA points out, because the credit usage fees on small purchases can wipe out a business's entire profit. This may be because some businesses are unaware of the fine print, or because they choose to not comply with the agreement.

Does NJ Dobi have any ruling or regulations regarding minimum purchases?

I would be surprised if there were any law requiring you accept credit cards for small purchases, but there are laws that require any merchant to accept any denomination of US tender as payment yet still many places have signs that say they don't accept anything over a 20 dollar bill. It's a pretty common practice. As a small business, you have to stay in business. I would set your policy as you need to then make an exception if anyone complains. Most people will probably understand but a few won't care.

I am pretty sure that there is no law preventing stores from charging a minimum amount to a credit card. I know they do this because merchants are all charged a fee every time people use credit cards at their stores. It is interesting that they pass this cost onto consumers. I could see this being a problem for smaller family owned businesses. I think they should access the fees according to a percentage of revenue or something in order to not put smaller companies out of business.

Their are no governmental laws to my knowledge only association regulations regarding minimum purchases. All credit card associations rules permit cash discounting this is a loophole that business have used for years if any one remembers cheep gas and 2 prices cash and credit. The rules state that you can not charge extra for the use of credit cards and they do not prohibit cash discounting. Just insure that you state your prices in such a manner do not say or price it as extra for credit cards just say we offer a cash discount. Then you can stay within the associations rules and still insure that you receive the same margins on your products.

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To my knowledge their are no governmental laws only association regulations regarding minimum purchases. All credit card associations rules permit cash discounting, this is the loophole that the businesses have used for years. If anyone noticed gas stations with 2 prices one for cash another for credit, they are offering discounting for cash. You must insure that you state it that way, most merchants get in trouble when they charge extra for credit. The biggest penalty for not following the association rules is that you may be banned from accepting credit cards but more likely you would be fined first.

More and more people are using credit/debit cards exclusively and carry little or no cash with them. I think businesses that set minimums for credit card use risk alienating many customers. I know I've stopped visiting a few places for this reason. I think too that business need to look at the 'big picture' with credit cards vs cash. Benefits like better transaction records andless leakage should help offset the fees.

Based on the conversation in this thread, we recently answered this question in an article on Business.gov. Read on for more information about Little-Known -But Important- Credit Card Rules