Stores setting minimum purchase for use of ATM or credit cards

Pago Pago, AMERICAN SAMOA — Following complaints from several constituents, Tualauta Faipule Larry Sanitoa is seeking an explanation from the Territorial Bank of American Samoa president and CEO, David Buehler regarding some local stores setting a minimum charge for purchases in order for the customer to use their ATM or credit card.

And this has prompted an investigation, now underway by the Consumer Protection Bureau of the Department of Legal Affairs, which is overseen by Attorney General Fainu'ulelei Falefatu Alaiilima Utu.

Late Monday afternoon, Sanitoa wrote to Buehler, saying that he was writing on “behalf of several constituents who have called to complain that several local stores are setting a minimum of $10 purchase per transaction in order for the customer to be able to use their ATM or credit card.”

Sanitoa pointed out that the Merchant Account Agreement: Section 11 – noting the Prohibited Transaction — Merchant Shall NOT do any of the following: Establish a minimum on debit cards or greater than $10.00 on credit cards or a maximum dollar Transaction amount.

He recalled a House Commerce Committee hearing last month where Buehler “shared with members of the committee that there is NO minimum charge as this is a violation of the vendor's agreement with the bank.”

“In addition, you asked that we report these vendors who are violating their card agreement to TBAS,” Sanitoa wrote to Buehler.

Sanitoa identified five stores, which he says are ones that he knows of at the “moment” but has been told that several other stores on island are using such a policy.

Samoa News was given the identity of the five stores — however, we have chosen not to publicize their names, as we believe it would be unfair because the policy of $10 minimum purchase when using an ATM card or credit card is no a new one and the practice is wide-spread on island.

In fact, the practice has been going on for years. Five years ago, Samoa News asked one of the stores the reason for the $10 minimum and was told that they (the stores) are charged a set fee on all sales that use credit and ATM cards by the issuing bank, so to make it ‘affordable’ for them, they established the policy.

Sanitoa reminded Buehler that earlier this year, ASG implemented a direct deposit policy in which all government employees were required to direct deposit their payroll or other payments directly into an employee's bank account.

“Many of the employees were forced to open an account at TBAS,” Sanitoa tells Buehler. And as you know, many of the employees that didn't have a bank account were mostly minimum wage or are at the lower end of the pay-scale.”

“Therefore, setting a minimum purchase of $10 if you use your ATM or credit card impacts our low income families when you are trying to make $300 stretch over 2 weeks and this fee is assessed with every single transaction,” Sanitoa concluded.

The Attorney General, who was copied on Sanitoa’s email message to Buehler, immediately responded, that the matter has been referred to the Consumer Protection Bureau director Lynne Blankenbeker to review and investigate the information provided.

Blankenbeker quickly responded informing Fainuulelei that an investigation will be carried out immediately. And Sanitoa was immediately informed of this action.

BACKGROUND

Samoa News should point out that it is not only TBAS ATM cards or credit cards that are being required to purchase $10 minimum — it’s all ATM and credit cards. And the practice has been going on for years now.

Another practice by many of the stores, is the 10% minimum purchase on all checks cashed at a store. Stores likened the policy to the fee that is charged to cash one’s check (payroll or personal) at a money exchange vendor.