There’s no minimum charge when using debit cards to make purchases, but there is one for credit cards.
That’s according to an update from Attorney General Fainuulelei Alailima-Utu on how his office has responded to a request from Rep. Larry Sanitoa to look into constituents concerns about being required to spend a minimum amount for purchases using ATM or credit cards
The AG said he ensured the Director of Consumer Protection, Lynne Blankenbeker, and the team of investigators made this a priority and visited stores that were reported to have minimum purchase requirements for credit and debit cards to do a prompt investigation.
“Our Office utilized this opportunity to inform businesses of the credit and debit card minimum purchase rules,” said the AG.
He elaborated that, in 2010, Congress passed the Durbin Amendment which directs the Federal Reserve Board to regulate debit card interchange fees so that they are reasonable and proportional to the cost incurred by the issuer, with respect to the transaction.
Likewise, this gave the Federal Reserve the power to regulate minimum amounts for credit card purchases and, as such, the Federal Reserve set the current limit at $10 or less.
These minimum requirements do NOT, however, apply to debit cards. Only credit cards.
The merchant application agreement utilized in the territory accurately reflects the Federal rules and laws.
Alailima-Utu stated, “All businesses must take notice that if you were previously applying a minimum purchase requirement for debit cards, you must stop this practice immediately. Also, please be reminded that you cannot exceed a $10.00 minimum for credit card purchases.
“Thus, a $20 minimum purchase for a credit card is unlawful.
“Currently, the Territorial Bank of American Samoa (TBAS) has debit cards but no credit cards. There is NO minimum purchase requirement for using a TBAS debit card. Thus, for example, a debit card can be used to make a $5 purchase.”
Any questions or consumer complaints should be directed to the Director of Consumer Protection at consumer@la.as.gov or phone no. 684-633-4163.
