New Credit Card Technology Pushing Retailers to Allow Small Credit Purchases
Some retailers have required minimum purchase amounts on credit cards due to high transaction fees, but technology improvements and signature-free transactions are part of a push to get retailers to drop the requirement. In 2003, Visa stopped requiring signatures on purchases under $15 and eased merchant fees, prompting Visa sales at fast-food restaurants to double between 2003 and 2004. Visa charges for other smaller items also went up 25 percent during that time. Credit card companies are also pointing to the speed and convenience of allowing credit card transactions. MasterCard is offering PayPass, which is a card that can be tapped on special terminals that McDonalds now has in some stores.
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