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Kohls Violates Visa's Merchant Agreement, The Protection of Prepaid Credit Cards

Posted by James Breen at 5 May 2008 15:33

I come now to the most interesting of these questions of card credit merchant service which I have constantly been asked for years. When I read this article, I realize I won't ever be disappointed.

It is something always coming out on top.

Inelegy writes: This afternoon I visited the Kohl's store in Moline, Illinois. When I was checking out I elected to pay with my Visa card. After sliding my card through the card reader I signed the screen when prompted. My cashier asked to see the card, which I handed over to her. She handed my card back to me and then asked to see my identification, to which I respectfully declined. She said I had to show my ID or I could not leave the store with my purchases... I explained to her that ..>>.

I found this one on today, quite interesting:

Hey, just a tip/reminder based on a recent customer-service nightmare I experienced…Stores are not allowed to require a "minimum purchase" for you to use a credit card, or a debit card with a major-credit-card logo. If they accept that card at all, they have to accept it for any amount; it's in their merchant agreement. (So no maximums, either.) And why let them get away with it? They don't let you get away with diddly squat, usually, and I'm all in favor of making the other side play by ..[more].

They said:

www.capecodonline.com, Depending upon the country in which you reside, one of the ways to limit your exposure for online purchases is by using a prepaid credit card. This is relatively new in some countries. The prepaid cards function exactly like a normal credit card. The merchant will not be able to tell the difference between a regular credit card and a prepaid one. The prepaid card has a limit which you set by the amount of funds that you place on the card. For example, if you purchase ..[More].

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Money can be loaded on to your prepaid card by cash, bank transfer or even another credit card, and because it is a Visa or MasterCard you can use it anywhere in the world. Prepaid cards generally have the same uses as a credit card, so much so that they are commonly referred to as ‘prepaid credit cards’. However, there is a difference. A prepaid card is completely powered by your cash and therefore the money you have in your prepaid account is the money you have to spend. This means there is no risk of running into debt. There are no credit checks and no interest to pay. Consequently, rather than referring to it as a prepaid credit card, a better description would be a prepaid debit card, a prepaid Visa card or a prepaid MasterCard.


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