[SUBSURF]

I have heard that it is a violation of the merchants agreement with the credit card company to ask for ID or to require a minimum on a purhase. Is this true?
Thanks

[Sentra]

I will look into that a bit more, but I think ID should be shown regardless. Many cashiers and so on don't because it saves time.

[mr.yet]

I personally would like to have them ask every time, so that they know it is me using the card and not someone else.

[ScottGem]

You can find copies of the merchant agreement for VISA and Mastercard on their web sites. I'm sure you can find the other major cards as well.

It may be that the agreement states the merchant cannot ask for any ID other than the checking the signature. However, the CC company could request that the merchant ask for additional ID.

[Fr_Chuck]

No, in fact they are suppose to ask to see a ID every time normally.

And min purchase is also merely store policy, remember the store pays a percent of the purchase as a fee to be able to take credit cards. Also some agreements they have require them to pay a dollar amount pluss percentage for each purchase. So if you went in and charged 2 dollars, the store could actually lose money if they had one of the accounts where they paid a fee for each card used at their store. ( these are normally small stores that don't take many credit cards)

Also remember there are 1000's of merchants agreements, not one, each bank, each provider of credit card services have their own agreements, and the agreements vary by a stores plan they puchase. Often the agreeent to take credit cards is not though the credit card company itself, it is though a vendor who supplies the credit card machines, who are the ones that have arrangement with the card companies.

[ScottGem]

Its true that minimum charges can be set the store as a matter of store policy. Its also true that many merchants, especially larger ones can negotiate there own merchant agreement, however, each card issue does have a standard agreement that is the starting point.

I do believe, however, that the only ID the merchant is required to check is a signature verification.

[posheak]

Depends on the holder of your card. Some require a minimum purchase until your balance gets to a certain level (Most of the time, just with new accounts). As far as identification, you can expect the third degree sometimes. With Identity theft going strong, they have to be assured that you are who you say you are.
I am not sure about where you are, but in the UK a retailer is free to set whatever limit they want for charge cards - often £5 minimum payment.

As for ID, if the person was purchasing alcohol for example, they may be REQUIRED to see ID, credit card or not.

If the retailer feels the card may be stolen, they should do a "code 10" call - iirc - to check the card's validity

[ScottGem]

Depends on the holder of your card. Some require a minimum purchase untill your balance gets to a certian level (Most of the time, just with new accounts).

This makes no sense. A CC company makes it money as a percentage of each transaction. Therefore, for them to put a minimum limit on a transaction is to deny them income. On the other hand, the stores generally have a lower proft on small ticket items. So paying an add'l fee cuts into their profit. So it makes sense for the STORE to set such limits NOT the card issuer.

[ScottGem]

If I disagree with something someone posts, I will explain WHY I disagree. That's only fair to the poster and the OP.

[newaukumdon]

The lower the "average ticket" the higher the merchant fees. As for ID a merchant is at the losing end of a fraud, he is obligated to check ID against billing address ,getting proper signature on all sales drafts as well as CC slip. A merchant in almost all fraudulant cases will get the funds removed or "chargebacked" because that is where the money is. The card holder won't pay because they did not make the purchase or the merchant has inadequete paper trail. And the card company won't eat it because they can retrieve the funds from the merchant as per agreement.

If a merchant is bright and follows the letter of the agreement they will never be subject to a fradulant transaction.

[stujkx]

SUBSURF, you heard correctly, more or less. It depends on the card really, but both VISA and MasterCard prohibit minimum purchase and photo ID requirements. It is part of the merchant agreements that are issued by VISA and MasterCard -- you can read these agreements on their Web sites. In fact, if the back of your MasterCard is signed, a merchant is forbidden to ask for ID and if they do you can call MasterCard at 1 800-MC-ASSIST to rat them out. The same goes for minimum purchase amounts -- they're not allowed. Yes, the merchant could lose money if you use your card to buy a candy bar, but it's part of doing business with MasterCard and VISA.

[newaukumdon]

What can they compare the signature against? I am a merchant and have been told that if the Id does not match the billing address they can dispute the charges. In fact I have had chargebacks because the employee did not verify address.. . The merchant agreement is with the processing company such as Bank of America or Cherry Hill not VISA Or MASTERCARD. I am going to read VERY closely to protect myself as a merchant because with no ID you could steal a card out of the mail, sign it and use it anywhere.

[webworm98]

This Answer was most accurate

[webworm98]

What can they compare the signature against? I am a merchant and have been told that if the Id does not match the billing address they can dispute the charges. In fact I have had chargebacks because the employee did not verify address. . . .The merchant agreement is with the processing company such as Bank of America or Cherry Hill not VISA Or MASTERCARD. I am going to read VERY closely to protect myself as a merchant because with no ID you could steal a card out of the mail, sign it and use it anywhere.

You can request an Id to do a signature verification but you can only look at the signature, you can not write any info down. Just tell the person you are doing a signature verification which is allowed by Visa and Mastercard.

For web & phone orders.
You need to talk to your processor about Card Security Code (CSC), sometimes called Card Verification Value or Code (CVV or CVC), is a security feature for credit or debit card transactions, giving increased protection against credit card fraud.

Also you can also add AVS

Address Verification System (AVS) is a system used to verify the identity of the person claiming to own the credit card. The system will check the billing address of the credit card provided by the user with the address on file at the credit card company.

You can also do a Code 10 authorization if you suspect someone.

To others,
Id Check, Surcharge and Minimum purchase amount are not allowed for Credit or debit cards that is ran as a signature transaction under MasterCard and Visa merchant agreement. However, debit cards that are ran through as a pin transaction can be surcharge by the merchant as long as it does not go through the Visa interlink/Plus or Maestro network. Surcharges are illegal in Florida except for government and utilities.

There is a California law that say merchants can ask for ID. The interpretation of this law is under debate.