Respected Members,

This is regarding Minimum Purchase on Credit Card. The issue
is being discussed, in detail, previously on this forum. But the reason behind
raising this issue is that recently I was at Spencers Supermarket, In Orbit
Mall, Malad, Mumbai. I saw that the Merchant Establishment has clearly put up
notice everywhere that Minimum Credit Card Purchase should be Rs.500/-. So after
necessary enquiry at ME, I wrote a letter to various issuing banks, Master Card
International & Visa Inetrnational, alongwith photo of notice.

Master Card International informed me that ME can not set
up Minimum Transaction Value for Credit Card purchase. To my surprise, ICICI
Bank informed me that the minimum amount for the acceptance of the credit card
is decided by the merchant outlets.

So the question is: Whether Issuing Banks, like ICICI
Bank, has right to allow Merchant Establishement to set up Minimum Transaction
Value on Credit Card purchase? Do these issuing banks and Merchant
Establishements have right to violate the rules of Master Card International &
Visa International? If one says that Bank don't initiate action against these
MEs as they need business. But do they know, how much business they loose for
Purchase amounts less than INR 500? I am sure this creates more confusion
amongst consumers as whether ICICI Bank is right or Master Card/ Visa
International is right.

Thanks & Regards,
Chetan Bordawekar

Dear members,


Actually the amount which we pay by our credit card to the merchant
establishment and the actual amount credited to the merchant
establishment is different.

Every member has to pay some percent transaction charges depending upon
his cr card receipts this percent can be less for a merchant if he is
getting much payment by cr card and vice versa.

May be that Merchant has decided some limit of percent of profit he is
going to make on the credit card transactions. because if you are making
a payment less than 500 than may be the profit margin is less and he
don't want to minimise it further or can't bear that.