Bill would set card purchase minimums at $10 in NYC

A pair of New York City Councilmen want to make it illegal for businesses to set credit card minimum purchase amounts above $10.

Some businesses in the city require patrons to make a purchase of $15 or $20 before they will accept payment via plastic, a practice that two Bronx Democrats — Ritchie Torres and Andrew Cohen — have submitted a bill to prohibit, according to a report in the New York Daily News.

"The ability to make a purchase by credit card could determine whether you're even able to make the purchase if you're short on cash," Torres told the publication.

The federal government mandates that businesses can set the threshold for credit card use no lower than $10, but it does not establish a maximum limit.

Some merchants say they cannot turn a profit on purchases if they are forced to pay transaction fees for credit purchases of only $10, the Daily News reported. If the proposal passes, they would still have the option to accept cash only.

Topics: Debit / Credit, Regulatory Issues, Transaction Processing

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