As always, thanks go to Consumerist.com.
The excuse I hear for this behavior is the credit card’s transaction costs (~3-5% of the transaction + a few pennies per transaction + a monthly clearing charge). As Jen reminded me the other day, cash has it’s own transaction costs (employees closing out drawers + transporting cash to bank + making change + slower check outs).
I want everyone’s opinion on the following issue
Person “A” tries to pay an $8
tab at establishment. Establishment says they have a $15 minimum and
refuses to run the card, telling Person “A” that they either need to
get cash or they will not be allowed back in the bar ever again.
Person “A” asks to talk to a manager assuming the manager will know
the merchant agreement and run the card. Manager basically says screw
off and backs the bartender in his argument.
The question is, next time person “A” goes back to the establishment
and is denied entry because of the afore mentioned incident – is there
legal action that can occur.
The establishment is denying entry for “failure to pay a bill” when
the customer clearly offered to pay the tabl with a visa credit card.
Under the merchant agreement for visa the establishment is required to
run the card. So what happens? What could the lawsuit claim and/or
accomplish?
I say yes…lawsuit..they have to grant entry to person “A”.
Yeah but what if the tab is like $2.00 and the guy wants to use his credit card?