Questionable merchant policy costs students
Popular food stops including Starbucks and Union Market are asking students to spend a minimum amount in order to use their debit cards
Allison Strouse
Issue date: 4/9/09 Section: News
Any student who tries to purchase anything from Starbucks under $3 with their debt card may have an unpleasant surprise.
As of April 1, 2009 customers need to spend a minimum of $3 in order to use their Visa, MasterCard or Discover.
Starbucks is not the only one enforcing the new regulation: Zee's, Union Market and the Burger Zone have also implemented the new guidelines.
Yet according to Visa and MasterCard, imposing a minimum or maximum purchase amount goes against their merchant agreements.
According to Visa's merchant agreement, "Imposing minimum or maximum purchase amounts in order to accept a Visa card transaction is a violation of the Visa rules."
MasterCard's rules read along the same lines stating that a merchant cannot require or indicate that it requires a minimum or maximum purchase.
Zia Ahmed, director of dining services, explained the reasoning behind the dollar line.
"The main reason behind it is efficiency," Ahmed said. "When you deal with a high volume situation, where you're going through so many people in a short amount of time, it slows down the line."
"We have to make sure that we provide the option but some level of balance," he said.
While the university has a merchant agreement with Visa and MasterCard, they were not able to provide the Buchtelite with a copy at press time. However, Ahmed said that he had not heard of this.
"Nobody has mentioned that to me," he said. "Every merchant account has a separate agreement with Visa and MasterCard."
Ahmed stated that while he did not know the exact terms of the agreement he would look into it.
"If we are not in compliance we will make that change," he said.
This event is not limited to the campus area, various stores have created this minimum and there is something that students and consumers can do.
"Visa's rules require merchants to always honor valid Visa cards in their acceptance category regardless of purchase amount. When cardholders see the Visa logo, they expect to be able to make a transaction without discrimination," Visa said in an official statement.
"If cardholders experience a merchant who establishes a minimum or maximum purchase requirement on Visa transactions, they should call the number on the back of their Visa card and provide the customer service representative with the name and location of the merchant."
As of April 1, 2009 customers need to spend a minimum of $3 in order to use their Visa, MasterCard or Discover.
Starbucks is not the only one enforcing the new regulation: Zee's, Union Market and the Burger Zone have also implemented the new guidelines.
Yet according to Visa and MasterCard, imposing a minimum or maximum purchase amount goes against their merchant agreements.
According to Visa's merchant agreement, "Imposing minimum or maximum purchase amounts in order to accept a Visa card transaction is a violation of the Visa rules."
MasterCard's rules read along the same lines stating that a merchant cannot require or indicate that it requires a minimum or maximum purchase.
Zia Ahmed, director of dining services, explained the reasoning behind the dollar line.
"The main reason behind it is efficiency," Ahmed said. "When you deal with a high volume situation, where you're going through so many people in a short amount of time, it slows down the line."
"We have to make sure that we provide the option but some level of balance," he said.
While the university has a merchant agreement with Visa and MasterCard, they were not able to provide the Buchtelite with a copy at press time. However, Ahmed said that he had not heard of this.
"Nobody has mentioned that to me," he said. "Every merchant account has a separate agreement with Visa and MasterCard."
Ahmed stated that while he did not know the exact terms of the agreement he would look into it.
"If we are not in compliance we will make that change," he said.
This event is not limited to the campus area, various stores have created this minimum and there is something that students and consumers can do.
"Visa's rules require merchants to always honor valid Visa cards in their acceptance category regardless of purchase amount. When cardholders see the Visa logo, they expect to be able to make a transaction without discrimination," Visa said in an official statement.
"If cardholders experience a merchant who establishes a minimum or maximum purchase requirement on Visa transactions, they should call the number on the back of their Visa card and provide the customer service representative with the name and location of the merchant."
Viewing Comments 1 - 10 of 15
Robin Anderson
posted 4/09/09 @ 7:55 AM EST
Once again, some administrative-policy-wonk like a Zia Ahmed think they can institute any policy they deem appropriate under the guise of "management rights"! Um, Ahmed? Informed consumers have long been busting the chops of arrogant vendors or merchants who thought they didn't have to comply with their merchant agreement with either Visa or Master Card!
Glad to see that the major stakeholders of our public universities, the students/tuition-payers, are finally starting to take their position to heart. (Continued…)
1-800-VISA-911
posted 4/09/09 @ 9:05 AM EST
Idiot Ahmed must be retrained at once.
NO MINIMUMS
NO MAXIMUMS
NO SURCHARGES
NO ID
http://www.mastercard.com/us/personal/en/contactus/merchantviolations. (Continued…)
Completely prohibited
posted 4/09/09 @ 11:52 AM EST
To report, simply call 1-800-VISA-911, press zero twice, and ask to file an "incident report" regarding a merchant violation/merchant who required a minimum. (Continued…)
What You Can Do...
posted 4/09/09 @ 3:41 PM EST
MasterCard wants to hear about merchants who break their rules. Send the name and address and an account of what happened to MasterCard WorldWide 2000 Purchase St. (Continued…)
Robin Anderson
posted 4/09/09 @ 4:30 PM EST
@ UpOH05 & Jake...
that's ok, folks...sometimes the truth hurts, eh? In any case, I'll get my day in court come June. At least I never violated the bargaining unit agreement at the Univeristy or any other personal contractual agreement in my whole life. (Continued…)
Violated Customer
posted 4/10/09 @ 9:55 AM EST
Are you familiar with the broken window theory? Sociological research suggests that non-enforcement of minor violations of laws or rules encourages further violations from others, resulting in a viscous cycle that continues to breed breaches of what is defined as acceptable behavior. (Continued…)
And on a related note?
posted 4/10/09 @ 12:16 PM EST
CREDIT CARD SIGNATURE IS ALL THE ID NEEDED
When you pay for merchandise with a Visa card, MasterCard, or American Express any store that accepts these cards should accept yours too, no questions asked. (Continued…)
Robin Anderson
posted 4/10/09 @ 1:00 PM EST
Aw...UpOh5!
You mean you missed all my posts in support of the great folk at the U. of A. and K.S.U. involved with providing relief to our fellow Americans after Hurricane Katrina? We were 400 strong on that first trip; Zips and Flashes getting along fine as long as nobody messed with somebody elses banner-ha! It's still called Kent State United for Biloxi/the Gulf and they're still doing great works. (Continued…)
Robin Anderson
posted 4/10/09 @ 1:12 PM EST
Aw...Jasper...oops, I meant big Jake!
At least I never had a single call-back or corrective punch list generated on ANY of the work I'd done in my 9 years of employment at K. (Continued…)
Violated Customer
posted 4/13/09 @ 11:18 PM EST
It takes no longer for a $2 authorization to go through than a $20 one. Idiot Ahmed must be retrained at once. The nerve of that creep trying to weasel his way through violating his customers with such nonsense. (Continued…)
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