Legal Question in Business Law in California
Is there a law on the books in California that states something to the effect that businesses cannot require a minimum purchase for a credit card purchase? I know the card companies have contracts that state the business may not require a minimum purchase but do not know if there is a law or statute that says the same thing.
3 Answers from Attorneys
It's not a law, any such rule would be a contractual obligation between the merchant and the credit card issuer.
The bulk of California's laws respecting credit cards are found at Cicil Code section 1747 to 1748.95. However, I could not find any law setting or pertaining to the setting of a minimum transaction size, or forbidding a merchant to establish a minimum.
As a franchise attorney I can say the other attorneys are right on point. It's all about the credit card merchant establishing a policy on minimums (or maximums) for credit card transactions. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Attorney
Franchise Foundations APC
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