Movement Against Illegal Minimums (MAIM)
Dear Fixer: My husband and I have been charter members of MAIM (so glad to have a name for it) ever since the little hand-lettered signs started popping up advising customers of store-imposed limits on credit card purchases. But our comments are ignored, and the only option in most cases is to pay cash or walk out without the merchandise.
Do you know if Visa and MasterCard are willing to supply written directions that we can show to the errant storekeepers?
Tee Gallay, Chicago
Dear Tee: Visa and MasterCard don't advertise these rules, and MasterCard spokesman Tristan Jordan says the company doesn't really want consumers to be their police force. Evidently, they're in a delicate position.
That's why The Fixer has created a handy list of your rights as a cardholder, perfect for clipping out and tucking into your wallet. The merchants you show it to might listen, or they might laugh in your face -- but at least you'll know you're right.
If you encounter a merchant violating their credit agreement by setting a minimum or maximum purchase amount or imposing a surcharge, you can report them to the credit companies, which will intervene through the merchant's bank. For MasterCard, go online to http://www.mastercard.com/, where you can download an electronic "merchant violation" form. For Visa, call the number on the back of your card to file a report.
As a side note, there was a precursor to MAIM -- the now-defunct Bankcard Holders of America.
Its former director, credit guru Gerri Detweiler, is now online at http://www.ultimatecredit.com/, a Web site chock-full of good advice for consumers.
One more thing to keep in mind: MAIM is only an acronym!
Dear Fixer: No complaint, just a comment on the minimum credit-card purchases. I was self-employed for 12 years in the coffeehouse business, until April of this year. I also had heard that it was illegal to have a "minimum" purchase.
We were strictly cash or check, but, because of the popularity of debit cards and credit cards, we looked into the process. We found the transaction fees would be prohibitive on small items.
For example, on a 12-ounce coffee that costs $1.35 with tax, the fee for a credit transaction would be 50 cents. On top of that are "batch" charges -- meaning that, at the end of every month, the company would add more charges to the transaction fee AND another monthly fee! After learning all of this, we decided not to use credit or debit. This is why small businesses do what they do with the minimums.
I think everyone should run their own business for a year. They'd see that it is not as easy as it looks. Thanks for listening.
Tony Healy, Tinley Park
Dear Tony: The Fixer sympathizes. We agree, it isn't cool to put a cup of coffee or a pack of gum on your credit card. (Hear that, MAIM members?) Our gripe is when you're already spending $9.25 and the merchant makes you buy one more item to reach a supposed minimum amount. That isn't fair, either.