UNIVERSITY PARK, Pa. -- Have you ever wanted to charge an item using a bank credit card associated with MasterCard or Visa, but the merchant posted a sign with a minimum charge amount or refused to complete the transaction? Many store owners are violating -- perhaps unknowingly -- the agreement with payment companies (i.e., MasterCard and Visa), says a consumer scientist in Penn State's College of Agricultural Sciences.

"If a merchant refuses to complete a transaction because you don't meet the minimum purchase amount, you have several options," says Cathy Bowen, assistant professor of agricultural and extension education. "You can pay cash, take your business to another store or file a complaint and report the merchant to Visa or MasterCard."

To file a formal complaint, Bowen says, contact the customer service department of the bank that issued your credit card. "Visa International or MasterCard International might take back the merchant's ability to participate in their network," she says.

"But keep in mind that -- to offer you this convenience -- merchants who accept Visa and MasterCard must pay fees to their bank, as well as to MasterCard and Visa International," Bowen says. "Typically, merchants pay their bank a percentage of the gross monthly sales made with credit cards. They also may pay Visa or MasterCard International a fee for each sale or transaction.

"So each time you use your credit card, the merchant loses a portion of the sale," Bowen says. "If you charge something for five dollars or less at a small family-owned business, the owners may be losing money on the transaction."

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EDITORS: For more information, contact Cathy Bowen at 814-863-7870.

Contacts: Kim Dionis KDionis@psu.edu 814-863-2703 814-865-1068 fax