No Swipe below R20. Cash Only.

[RedViking]

Are shops allowed to prevent your from using an Absa/FNB/Standard Bank card machine when paying for an item that is below R20?

Some limit it to R50, others make it R100.

Shops are welcome to make their own rules, I just wonder if they are allowed to do it. Does the agreement they have with Absa/FNB/Standard or whoever, allow them to do this?

Do you support this rule or am I the only one thinking it is stupid?

I don't carry cash with me, and I am not gonna draw R20/50/100 just to pay for an item.

Anyone here with a shop that support this?

 

[Mike Hoxbig]

No. They must accept payment for any amount. Report them to their bank...

 

[Progenix Oj101]

I think you need to report to Visa/MasterCard, not their bank?

 

[Dovi]

I don't think it's illegal... I've personally noticed this practice falling away in South Africa as a whole, but it's still pretty standard in bars and restaurants in Europe from my experience.

 

[RedViking]

I think you need to report to Visa/MasterCard, not their bank?

That's what I'm wondering. Who must I contact.

The shop is a SPAR. I think OASIS made it R30. A local chicken shop had theirs at R50 but said they had to remove the limit.

 

[longboy]

They have to accept it.

As per section 5.11.3 of the MasterCard merchant rules:

A merchant must not require, or indicate that it requires, a minimum or maximum Transaction amount to accept a valid and properly presented card.

http://www.mastercard.com/us/merchant/pdf/BM-Entire_Manual_public.pdf

 

[I.am.Sam]

Lots of local stores dont swipe below R20 and some below R50
This is more due to the % taken by the bank

 

[RedViking]

Lots of local stores dont swipe below R20 and some below R50
This is more due to the % taken by the bank

The practical part behind it I understand. But from the banks point of view is this legal?

 

[RedViking]

They have to accept it.

As per section 5.11.3 of the MasterCard merchant rules:

A merchant must not require, or indicate that it requires, a minimum or maximum Transaction amount to accept a valid and properly presented card.

http://www.mastercard.com/us/merchant/pdf/BM-Entire_Manual_public.pdf

Thanks @Shaun108. I wasn't sure where to find the rule. The link seems to be for US. Will it also be for ZA?

 

[Drake2007]

I just don't go back to any shop that demands minimum payment ever again.

 

[Progenix Oj101]

Lots of local stores dont swipe below R20 and some below R50
This is more due to the % taken by the bank

That doesn’t make sense. It’s a percentage either way, not a set amount.

 

[RedViking]

I just don't go back to any shop that demands minimum payment ever again.

I will rather try to solve the issue first and have the limit removed. That way I can go back to the manager and say:

"I told you, the customer is always right".

Also it will solve the frustration for many others.

 

[longboy]

Thanks @Shaun108. I wasn't sure where to find the rule. The link seems to be for US. Will it also be for ZA?

Not 100% sure. I would assume so though since Mastercard and Visa are international.

 

[Werfetter]

That doesn’t make sense. It’s a percentage either way, not a set amount.

Yeah if it is a % then why does it matter how much I spend it will cost them the same % of my total spend.

I get the bars thing. Especially when busy card transactions can be slow and the place is busy so swiping for every drink independently can cause a backlog of clients...

 

[Snyper564]

I wonder if it's a percentage and fixed fee. Bit sure tho. Saw this for the first time last week in many years! I just don't carry cash anymore especially with parking now taking credit cards pretty much everywhere

 

[RedViking]

I wonder if it's a percentage and fixed fee. Bit sure tho. Saw this for the first time last week in many years! I just don't carry cash anymore especially with parking now taking credit cards pretty much everywhere

No imagine you have been standing in a queue for 10 minutes you get to the front. "SOoooooorreeeeeeee, no card below twenteeeeeee. Cash onleeeee. Plaaaaaaaastiiiiick?".

 

[Mike Hoxbig]

I don't think it's illegal... I've personally noticed this practice falling away in South Africa as a whole, but it's still pretty standard in bars and restaurants in Europe from my experience.

It's not illegal, but it's in violation of their merchant agreement...

 

[RedViking]

It's not illegal, but it's in violation of their merchant agreement...

This is what I'm thinking.

 

[Progenix Oj101]

I wonder if it's a percentage and fixed fee. Bit sure tho. Saw this for the first time last week in many years! I just don't carry cash anymore especially with parking now taking credit cards pretty much everywhere

There used to be a dial out fee back in the day, but these days there’s no flat rate per transaction. There’s a percentage only.

 

[Other Pineapple Smurf]

There used to be a dial out fee back in the day, but these days there’s no flat rate per transaction. There’s a percentage only.

Depends as transaction fees can also include communication costs. We pay a very small transaction fee but to the company supplying us the modem if we go out of our monthly limit.