Palatine man takes on credit card restrictions

Credit cards are getting a workout this holiday season, but a Palatine man is campaigning against some stores that he says are placing unfair restrictions on purchases.

Todd Bulmash began a effort earlier this year to stop retailers from forcing customers who pay with a credit card to charge a minimum amount.

Bulmash, a 27-year-old import specialist for a packaging company, said his motivation came from seeing signs posted in stores. He said he's been forced into buying stuff he didn't want to meet the credit card minimums.

"My goal is to get a law passed here in Illinois to stop this," he said.

He's calling his effort Citizens Against Minimum Purchases. He's has sent letters to credit card companies and local politicians complaining about the practice.

There's nothing on the law books about minimum credit card purchases. A federal law prohibiting surcharges on credit card or check purchases expired in 1984.

Visa and MasterCard, however, expressly prohibit merchants from requiring a minimum purchase.

A Visa spokeswoman offered no comment beyond what's on the company's Web site, which states: "Visa merchants are not permitted to establish minimum transaction amounts, even on sale items. They also are not permitted to charge you a fee when you want to use your Visa card. If you run into a problem like this with a merchant, please notify the financial institution that issued you your Visa card."

Violations of the merchant agreement could be subject to fines, or the credit card company could strip a store of its right to accept its card.

Bulmash said he's also contacted American Express and Discover card officials. While there are no details about minimum purchases in their merchant agreements, card officials told him merchants are told be to be consistent with policies for all credit cards.

Bulmash said he's lodged about 10 complaints with credit card companies. And he said store owners have taken down their signs after he's contacted the companies.

"You can't pick and choose how you are going allow someone to use a credit card," he said.

Some retailers have said they need to establish a minimum because transaction charges on credit purchases would result in them losing money otherwise.

Hoffman Estates Chamber of Commerce Executive Director Jill Blodgett said she can empathize with businesses that could lose money over small credit card purchases, like a $1 cup of coffee.

Blodgett said most credit card companies charge a transaction fee, which could range from 10 to 30 cents, and also charge a percentage of the item's cost. After all the fees, a store could lose money, she said.

But Blodgett still prefers credit card payment.

"It's a great way to be in a timely manner, rather than waiting for a check," she said.

Rolling Meadows Chamber of Commerce Executive Director Linda Ballantine said the issue has never come up with her members.

"There are so many types of businesses in Rolling Meadows," she said. "I think businesses should continue to do what's best for them and what makes sense for their customer base."