Starbucks will take my $4.75

How a trip to a family-owned coffee shop next door spurred an ethical dilemma and offered a harsh reminder that the Starbucks in either direction 6 blocks away accepts all payments, any amount, any time.  

Me: I'll have a small chai latte, almond milk.

Barista: Okay, that'll be $4.75.

Me: (Reaches in left back pocket to grab wallet and pulls out debit card.)

Barista: Hmm, do you want to add a shot to that?

Me: Nope.

Barista: Do you want a bagel or something else to add to your order?

Me: No.

Barista: Okay. Well, do you have cash?

Me: No.

Barista: It's a $5 minimum. (Points to invisible sign above register.)

Me: (Stares for 5 uncomfortable seconds. One for every dollar of that card minimum. Blinks twice for both middle fingers in my pocket. Then turns around and walks away in silence.)

Let's rewind. I was $.25 short. Are you kidding me? 

I understand that since the introduction of the debit card in the 1980s, the financial industry has turned mere cents per transaction into billions. But remember that's not really my problem. And at 7:30 am after hauling dirty laundry on a bicycle, it's most certainly not my problem. 

In fact when the debit card was introduced the average transaction fee levied on merchants was as low as $.10 in some cases. Then as the popularity of cards grew among people, banks squeezed more and more from merchants each year until trade groups like the National Retail Foundation said enough is enough. 

The 2010 Dodd-Frank financial overhaul aimed for a $.07 to $.12 cap, however its final rules which took effect a year later set a cap on debit card swipe fees at $.22 plus percentage. Not exactly what the merchants wanted yet still a significant improvement in savings for any business. Knowing all of this, you can completely empathize with merchants. It seems like what was a convenience for both shops and its customers became a new way for the financial industry to siphon more money at both ends. Merchants and banks continue to slug it out in courtrooms, especially over chip cards. 

Now back to the scene at my local coffee shop. I know what I'm entitled to as a Visa card holder as outlined in this helpful guide for consumers and merchants titled, Minimum Transaction Amount on a Visa CREDIT Card. 

Here's an excerpt: When a customer uses a Visa credit card to buy goods or services, you may establish a minimum purchase amount, but it must not exceed $10. Minimum purchase amounts cannot be applied to transactions that are processed with a debit card.

I can't imagine how the coffee shop owner managed to get two things wrong here: the $10 minimum for credit and the ban on minimums for debit. 

So a few questions for my local coffee shop owner: 'Why play the banks' game at all? Why not just accept cash?"

Yes, cash is an inconvenience but it's a truly principled stance on the matter. And the one every customer must respect at all times. 

I guess until I get an answer, my $4.75 in debit, credit or whatever goes to Starbucks.

It turns out I had exactly $4.75 in cash and coins... at home. Oh well.