Quote:
Originally Posted by koland
Actually, several people have had these charges refused or their CC canceled/blocked due to suspected fraud activities (penny charges are often used to "test" a card's validity, although these are usually then backed out before the cardholder sees them). Merchants don't get to set the rules, it's true, but there are other ways around them (and you'll often see minimum purchase limits in stores). These problems, however, were when their fraud detection measures kicked in, not arbitrary tiny charges.
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The only time that would happen is if the MERCHANT CARD SERVICE declines the charge. And it is a complete violation of any card's TOS for the merchant to post a minimum purchase amount or to refuse a credit card for not being large enough amount. I have seen people call their credit card company in line at a store. That sort of policy will get a businesses account suspended or pulled in no time flat. Face it credit card companies want every penny and for the merchant those are the rules and they know it up front.
Personally I find it insane to use a credit card for a $1 purchase but have actually found myself w/o cash and only wanting a soda and bought one with a card. Merchants have this factored into their pricing already so they lose nothing.
The fraud detection would only happen is a large number of similar charges come through via the same merchant card service provider either at the same time or from multiple card service providers. I realize it is a game of cat and mouse, especially given online charges but there are many ways to protect one self including using cards that offer on demand generated card numbers with limitations such as number of uses or duration. That is a different issue. For a legit charge the card company will nor decline any charge unless other issues are present with the card, the merchant or the card service provider. Doubtful somewhere like Amazon would fall into the suspicious activity category.
BTW, verification charges are rarely actually backed out, they simply are allowed to expire in the standard 72 hours. It is a pet peeve of mine when a business does a pre-auth for ever card purchase even from existing customers. It is just another item to track to make sure the charge amount hold is released.