All I wanted was a burrito from Del Taco and I ended up walking away hungry due to the inablity to make a microtransacton with my debit card.
Micro-transactions is the ability to pay for goods and services using small amounts of funds to pay for them through a debit/credit/electronic payment system. It is understood that the amount of money as $12 or less is considered a micro-payment and the reason it is difficult to pay for these types of transactions is the Finical System makes very advantageous with the fees associated with processing any transaction smaller than $10 to be profitable for merchants. Making these types of payments at a low cost is not in the finical interest of these payment systems. Think of the volume of transactions that occur in the fast food industry everyday when some buys a Meal or any Dollar Menu item making these types of transactions at a low cost would not be profitable. Due to the fees impose by the Banking/Merchant providers of the POS there is not a way to make a small payment for goods without paying an exuberant fee whether your the customer or merchant accepting payment to the debt/credit/electronic payment systems.
You rarely these days fine a place that is willing to accept a debt card or credit card transaction below the minimum amount of $5 without tacking on a $.50 or more fee. Dodd and Frank reform bill has cause this to be increasingly a common place occurrence for places of business to tack this fee especially for small business. While Dodd and Frank lower the fee cost on the consumer side with banking transactions the merchant side did not see that same break; but they did gain the legal right to refuse any transactions below $10 made on a Debit/Credit card, something that finical institutions had contractually refuse to allow merchants to do prior to the Dodd and Frank.
Now, what I have observe is if you make a transaction less than a $1 even with the tack on fee business refuse to accept the payment or complete the transaction unless you make a larger purchase. This has occur to me twice within the last month in which I attempt to make a purchase below a dollar and could not do so because the merchant refuse to accept my card and I did not have cash to make payment.
The first attempt to make the purchase was at a Fast Food place I had attempt to buy an item on the dollar menu at a Dell Taco. I walk in to the place I knew I could make the purchase for a burrito that was after taxes only $.69 and their was no sign indicating a service charge for transactions below $5. But the cashier and then manager refuse to accept payment unless I bought something to make the total more than $2. When I ask why I could not make the payment they said it was their policy not to accept payment below $2 ask where the sign indicating this was and the manager said their was not one, it just the policy.
The second attempt was at a my local Copy place I had to fax a document and it cost was $1 not tax. When I went to make the payment the merchant refuse to accept my card and just waive the transaction. I ask why he stated it was not worth for him to accept a Debit/Credit transaction for just a $1 even with the tack on fee of $.50. Ask him does this problem come up often for him when it came doing his business, he said no most of his customers transactions are $5 or more he wish that his customers transactions average higher than $15 he would earn more money from the Debit/Credit transaction, but right now they mostly sit around the $10-12 range.
Both these experience demonstrate me on a personal level why I am glad that I have hop on board the cryptocurrency train now more than ever there needs to be a means to pay for goods and services without the add cost or hassle. Do not let the Finical Cartel fool you Micro-payments are a Billion dollar industry perhaps a Trillion Dollar Industry in which the Finical Cartels are making a tremendous amount of profit. This is why Cryptocurrency is so important to the overall economic growth of the World Economy the ability to safely and securely make these daily transactions without paying fees on both the merchant and customer ends of the transactions. These type of currency make possible for both the consumer and merchant to conduct business that gives the advantages to both groups on saving money through the elimination of the middle man (Finical Industry).
I hope with the acceptance by Ebay of Bitcoin through Braintree will accelerate the merchant and consumer adoption of Bitcoin. I believe that this will happen due to the holiday sale of 2014 success that will occur because of Ebay adoption. Then the next time I go to any place I will be able to pay for something under $1 with no problem.
Keep aiming for the Moon Shibes