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Minimum purchase for contactless?

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  • 20-10-2020 12:36pm
    #1
    Eleven Benevolent Elephants
    Banned (with Prison Access) Posts: 426 ✭✭


    I was in a local pound shop the other day and I was attempting to buy a gift bag for €1.50.
    They refused the transaction when I asked to tap because of their minimum purchase policy of €5 by card.

    Thinking about it, I haven't seen a minimum purchase policy in a long time in any shop.
    It's their shop, their rules I suppose. I just left the item there and walked out. I purchased a similar one in Tesco for €2.

    I heard (probably erroneously) that minimum purchase policies are not allowed as per merchant rules. Is this just a scheme to make the customer grab extra items at the last minute to bring it up to the fiver?


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    #2
    Gumbo
    Moderators, Society & Culture Moderators Posts: 38,515 Mod ✭✭✭✭Gumbo


    Eleven Benevolent Elephants wrote: »
    I was in a local pound shop the other day and I was attempting to buy a gift bag for €1.50.
    They refused the transaction when I asked to tap because of their minimum purchase policy of €5 by card.

    Thinking about it, I haven't seen a minimum purchase policy in a long time in any shop.
    It's their shop, their rules I suppose. I just left the item there and walked out. I purchased a similar one in Tesco for €2.

    I heard (probably erroneously) that minimum purchase policies are not allowed as per merchant rules. Is this just a scheme to make the customer grab extra items at the last minute to bring it up to the fiver?

    They get charged per transaction from the merchant and machine owner. A €1.50 purchase would loose them money. I don’t accept small transactions either.


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    #3
    Zhane
    Registered Users Posts: 1,154 ✭✭✭Zhane


    Adding a surcharge is against EU legislation, but having a minimum purchase amount is not against legislation.

    However, both visa and MasterCard have their own policies about setting a minimum transaction amount is not allowed in the EU.

    So not against the law, but it seems against their terms and conditions with card suppliers. This is from here:

    https://www.moneyguideireland.com/minimum-spend-debit-cards-allowed.html

    Myself if they have a policy for minimum spend I tend not to purchase anything. I don’t carry cash anymore.


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    #4
    Eleven Benevolent Elephants
    Banned (with Prison Access) Posts: 426 ✭✭Eleven Benevolent Elephants


    Gumbo wrote: »
    They get charged per transaction from the merchant and machine owner. A €1.50 purchase would loose them money. I don’t accept small transactions either.

    What's your business can I ask?

    I doubt the transaction fee would be so high that a €1.50 transaction would lose money.
    Did I hear wrong that they're not allowed to refuse transactions?

    I didn't argue, I just left the item back and purchased it elsewhere.


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    #5
    [Deleted User]
    Posts: 7,712 ✭✭✭ [Deleted User]


    You did right to walk and leave it. Hopefully more and more come round to doing that and they’ll have to stop.


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    #6
    Eleven Benevolent Elephants
    Banned (with Prison Access) Posts: 426 ✭✭Eleven Benevolent Elephants


    Zhane wrote: »
    Adding a surcharge is against EU legislation, but having a minimum purchase amount is not against legislation.

    However, both visa and MasterCard have their own policies about setting a minimum transaction amount is not allowed in the EU.

    So not against the law, but it seems against their terms and conditions with card suppliers. This is from here:

    https://www.moneyguideireland.com/minimum-spend-debit-cards-allowed.html

    Myself if they have a policy for minimum spend I tend not to purchase anything. I don’t carry cash anymore.

    I have a visa debit for my current account (where my wages gets paid) and an An Post account (MasterCard) joint account with Ms Elephant.

    Both are contactless enabled.

    Are all card machines owned by MasterCard or Visa? What about sumup?


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    #7
    Pyr0
    Registered Users Posts: 5,967 ✭✭✭Pyr0


    Eleven Benevolent Elephants wrote: »
    I have a visa debit for my current account (where my wages gets paid) and an An Post account (MasterCard) joint account with Ms Elephant.

    Both are contactless enabled.

    Are all card machines owned by MasterCard or Visa? What about sumup?

    SumUp are their own company, they tend to be for smaller companies/independent businessnes who don't want to be tied to lengthy contracts, they have their own card readers, fees etc. You'll normally see the likes of BOI/AIB or Elavon branded card readers in Ireland with a few smaller companies dotted around too.


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    #8
    Gregor Samsa
    Registered Users Posts: 8,927 ✭✭✭Gregor Samsa


    Eleven Benevolent Elephants wrote: »
    I doubt the transaction fee would be so high that a €1.50 transaction would lose money.

    SumUp charge 2.75% per transaction. So basically 4 cent on that €1.50 transaction. How much that eats into profits depends on what was being sold.


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    #9
    McGinniesta
    Registered Users Posts: 4,402 ✭✭✭McGinniesta


    Bring cash next time.

    Problem solved.


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    #10
    dresden8
    Registered Users Posts: 3,289 ✭✭✭dresden8


    My work canteen will accept contactless for an 90c cup of tea. If you want cashback they will let you buy a butter for 20c and do the cashback.


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    #11
    Gooey Looey
    Closed Accounts Posts: 1,297 ✭✭✭Gooey Looey


    McGinniesta wrote: »
    Bring cash next time.

    Problem solved.

    Who carries cash these days? It's their policy, my policy is to tell them f off and go elsewhere. People should refuse to buy from places like this!


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    #12
    Eleven Benevolent Elephants
    Banned (with Prison Access) Posts: 426 ✭✭Eleven Benevolent Elephants


    McGinniesta wrote: »
    Bring cash next time.

    Problem solved.

    Read the op like a good kid


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    #13
    _Brian
    Registered Users Posts: 18,486 ✭✭✭✭_Brian


    Had this problem in local filling station.

    Got a drum of petrol for the lawnmower that came to just under €8

    Tried to tap to be told minimum card spend was €10.

    There followed some over and back abkut I should do lotto, or buy myself an ice cream to make the €10

    I asked “where do I leave the petrol back” to be met with a blank stare.

    “It’s my drum and you won’t let me pay for the petrol so I don’t want it any more, where do I leave it back ?”

    Followed some grumbling and she let me tap the card and pay for the petrol without a minimum spend.

    At the end of the day it’s against the T&C of the card machine agreement to have a minimum spend and they know it.

    Feckin cheek.


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    #14
    Eleven Benevolent Elephants
    Banned (with Prison Access) Posts: 426 ✭✭Eleven Benevolent Elephants


    Someone posted a link where you can report shops doing this.
    I might do it myself.


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    #15
    Gregor Samsa
    Registered Users Posts: 8,927 ✭✭✭Gregor Samsa


    Eleven Benevolent Elephants wrote: »
    Someone posted a link where you can report shops doing this.
    I might do it myself.

    This page says it once had a link to a MasterCard page for reporting it, but it doesn't go to the form now. You might find it digging around the MC site if it's still something they have:

    https://www.moneyguideireland.com/minimum-spend-debit-cards-allowed.html


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    #16
    Esse85
    Registered Users Posts: 8,238 ✭✭✭Esse85


    I'd imagine it's much safer and more hygienic to have as little cash on the premises as possible.

    You did the right think OP in walking out.

    If stores like that don't want to modernise their business and get with the times, they will simply be left behind.


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    #17
    Hector Savage
    Registered Users Posts: 8,810 ✭✭✭Hector Savage


    Imagine in the middle of a pandemic insisting someone pay with filthy dirty cash ... jesus...


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    #18
    OEP
    Registered Users Posts: 1,151 ✭✭✭OEP


    For businesses that actually declare all of their money to Revenue, it's much more straightforward to have card transactions and safer because you're not dealing with cash. Numerous business owners have told me this, with most saying they'd prefer to be card only.


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    #19
    murpho999
    Registered Users Posts: 28,421 ✭✭✭✭murpho999


    The stupid thing on behalf of businesses is that their banks are charging the more for handling their cash than a contacless payment, Businesses should be encouraging people to pay by card and phone.

    Quicker, more secure, staff can't fiddle it and saves on bank fees.


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    #20
    ED E
    Registered Users Posts: 36,166 ✭✭✭✭ED E


    Gregor Samsa wrote: »
    SumUp charge 2.75% per transaction. So basically 4 cent on that €1.50 transaction. How much that eats into profits depends on what was being sold.

    You'll pay either way in cash handing fees, probably more for cash if you calculate per transaction cash costs.


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    #21
    starlit
    Registered Users Posts: 12,340 ✭✭✭✭starlit


    I didn't think there was a minimum with contactless even if you spent €1 or €2 or less.


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    #22
    Gooey Looey
    Closed Accounts Posts: 1,297 ✭✭✭Gooey Looey


    See these shops have forgotten the cost of handling cash. They need to pay staff to spend time counting it, they need to install expensive security measures to watch it and keep it safe, then they need to get it to the bank, get charged by the bank each time they lodge it and get charged extra if it's not all neatly stacked and notes are not all facing the same direction!


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    #23
    weldoninhio
    Closed Accounts Posts: 14,311 ✭✭✭✭weldoninhio


    Eleven Benevolent Elephants wrote: »
    I was in a local pound shop the other day and I was attempting to buy a gift bag for €1.50.
    They refused the transaction when I asked to tap because of their minimum purchase policy of €5 by card.

    Thinking about it, I haven't seen a minimum purchase policy in a long time in any shop.
    It's their shop, their rules I suppose. I just left the item there and walked out. I purchased a similar one in Tesco for €2.

    I heard (probably erroneously) that minimum purchase policies are not allowed as per merchant rules. Is this just a scheme to make the customer grab extra items at the last minute to bring it up to the fiver?

    It's against merchant rules. Have a look at what machine they use next time you are in and contact them. They take it very seriously.


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