In our last blog entry, we set out the provisos of an amendment to the proposed Restoring American Financial Stability Act of 2010 and noted some related law-making occurring at the state level. And as we mentioned, if a bill with “minimum/maximum” transaction size allowances is indeed signed into law, and/or should your state government opt to follow Vermont’s lead, you’ll have a few decisions to make.

For starters, if you haven’t been imposing a minimum charge for credit and debit card transactions, you’ll need to decide whether to leave things “status quo” or to jump on the “minimum/maximum” bandwagon. In coming to a conclusion, consider that consumers have become accustomed to buying everything from a cup of coffee to a new car with their credit and debit cards. Many simply don’t carry cash anymore and may no longer patronize stores or dining establishments where the size of their transaction may dictate how they pay for their purchases.

Bear in mind, also, that as opponents of the amendment point out, you’ll need to spend time training employees to explain “minimum/maximum” policies at the point of sale. Moreover, confusion at the point of sale leads to more costly transactions for merchants. Any savings you may reap as a result of opting for minimums and maximums may be lost in time and efficiency.

Should you opt to forge ahead on the “minimum/maximum” front, think very carefully about the minimum amount customers must spend in your store in order to use a credit or debit card, as well as the maximum transaction amount they may settle using “plastic” rather than cash or even a check. Look at the levels set by your competitors, and keep your “numbers” in line with them.

For more information on this issue or to read the full article, www.paymentsource.com