Creditnet News Story
Credit card lenders now endorsing minimums
Wednesday, September 8, 2010
By William Davis
Major lenders used to forbid small business owners from imposing minimum payment amounts to use a credit card, but they are now prohibited from doing so by the Credit Card Accountability, Responsibility and Disclosure Act.
Despite opposing them for years, major lenders seem to be coming around to the idea of businesses setting minimums for credit card purchases, as they have already amended their rules to better incorporate them. According to a report from the Consumerist, lenders like Visa, MasterCard and American Express say they are now supporting minimum payment amounts, which by law cannot exceed $10. But it's that limit, and the fact that vendors seem to be adopting only that amount, that has the lenders onboard with the change, the report said.
The report said that while other lenders have already amended their printed rules related to these minimums, MasterCard has yet to do so, but says that it will modify its policies "in the near future."
Issuers used to be fervently opposed to minimum payment amounts because it discouraged consumers who were making purchases under $10 from using their credit cards.
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