There’s a lot that goes on behind the scenes when a customer swipes their card. Rather than foisting all that complexity on you owner who is worrying about credit card processing for small business, Moolah feels that it’s our task to clarify and simplify. Still, it’s a complicated process. Let’s focus on one term: Batching, and why you don’t have to worry about it.
Step one to understanding batching is to realize that there are two distinct processes that take place when a credit card is used for a transaction. The first step is the one that you see: a credit card transaction is “authorized” by the issuing bank. One of two things can happen here, and they happen instantly: either the card is “approved,” or “declined”. This, however, is not the end of the story. More needs to be done to make sure that the funds successfully get from the cardholder’s account to your business’s account.
Step two of the process, after authorization, is the “capture” process. It’s called that because you the vendor must “capture” all the transaction data for the period of time, usually for the business day, and send them to your credit card processor.
Some businesses don’t use a payment gateway, but rather rely on their standalone terminal and their payment processor. One notable company that does things this way is Dharma Merchant Services. Businesses that use a standalone terminal must do the batching themselves. There are a few options, either setting up a manual batch out, or automatic. The important thing for these vendors is to batch within 24 hours. If they don’t the business stands the risk of being charged a different (higher) interchange rate when the transactions are sent to be processed. These interchange rates are complex, and live on big, tough-to-parse tables. At the end of the day, most people handle their batching in a timely manner, and therefore probably don’t worry too much about their interchange rate. Still, it might be a little bit of a concern for some to potentially be charged a different rate in the event that something prevented them from batching within 24 hours.
Moolah relies on Authorize.Net as its payment gateway. That means you don’t have to worry about batching—it happens automatically. This gives you the comfort of knowing what you’re paying at the end of the day, end of the month, and always. Some things are just way too complicated to have to sort through, and we at Moolah felt that batching and interchange rates are one of those things. Credit card processing for small business doesn’t have to have a learning curve. With transparency and simple service, Moolah saves you from the annoyance of batching.
Thank you for scheduling. If you have any questions, please contact us at 800-625-1670.
A credit card surcharge is an additional fee added to a transaction when a patient chooses to pay with a credit card. The surcharge is intended to help offset the cost of credit card processing and applies only to eligible credit card transactions.
No. Debit card transactions may not be surcharged under any circumstances, even if the debit card is processed as a credit transaction or entered manually.
Yes. Credit card surcharges may not exceed the merchant’s actual cost of accepting credit cards and are capped at a maximum of 3% of the total transaction amount, in accordance with card-network rules and applicable law.
Yes. Card networks require clear and transparent disclosure of any credit card surcharge. Practices must notify patients through appropriate signage at the practice entrance, point of sale, and anywhere payments are accepted. If payments are accepted online, the surcharge must also be clearly disclosed on the practice’s website.
Yes. Some U.S. states and territories prohibit or restrict credit card surcharging. Practices are responsible for understanding and complying with their state’s specific requirements before implementing a surcharge.
No. While Moolah provides tools and general guidance to support credit card surcharging, compliance with all applicable laws and card-network rules is the responsibility of the merchant. Moolah does not provide legal advice and assumes no liability for a merchant’s compliance.
Most major credit card networks permit surcharging when done in accordance with their rules, but additional requirements or restrictions may apply. Practices should ensure they have completed all required network notifications and disclosures prior to enabling surcharging.
Failure to comply with surcharging rules may result in card-network fines, required refunds, or other enforcement actions. Practices should ensure they fully understand all applicable requirements before applying a surcharge.
Flex does not currently offer built-in support for credit card surcharging. If a practice chooses to enroll in a surcharge plan, payments would need to be processed through Moolah’s payment platform, which is designed to support surcharging and integrates directly with Open Dental.
If you are considering introducing a credit card surcharge for your patients, it is important to understand that there are specific rules and regulations that must be followed when enrolling in and operating under a surcharge plan.
This article provides a general overview of common surcharging requirements. This content is provided for informational purposes only and does not constitute legal advice. It is the responsibility of each merchant to review, understand, and comply with all applicable laws, card-network rules, and regulatory requirements, including notification timeframes, signage requirements, surcharge percentage limits, and jurisdictions where surcharging is prohibited.
If you are unsure about the laws or regulations applicable to your practice, you should consult with qualified legal counsel. Moolah assumes no liability for a merchant’s compliance or non-compliance with credit card surcharging rules or regulations.
Transparent Communication
Card networks, including Visa, Mastercard, Discover, and American Express, require merchants to clearly and transparently disclose when a credit card surcharge is applied.
Practices must clearly notify patients of a credit card surcharge through appropriate signage placed at the practice entrance, at the point of sale or terminal, and anywhere payments are accepted. If payments are accepted online, surcharge disclosures must also be clearly visible on the practice’s website. All disclosures must inform patients that the surcharge applies only to credit card transactions.
Surcharge Limits
Credit card surcharges must comply with both card-network rules and applicable law. The surcharge amount may not exceed the merchant’s actual cost of accepting credit cards and may not exceed 3% of the total transaction amount.
Card-network rules cap credit card surcharges at 3%, meaning that if a merchant’s processing costs exceed this amount, the excess portion cannot be passed on to the patient.
Network and State Restrictions
The major credit card networks, such as Visa and Mastercard, impose specific requirements related to surcharge limits, advance notification, and disclosure.
In addition, several U.S. states and territories regulate or prohibit credit card surcharging. At the time of writing, credit card surcharging is prohibited in Connecticut, Maine, Massachusetts, and Puerto Rico. Other states, including Colorado, Minnesota, Mississippi, New Jersey, and New York, impose restrictions on surcharge amounts or require specific disclosures.
If your practice operates in a state that restricts or prohibits credit card surcharging, you must fully understand and comply with those requirements before implementing a surcharge.
Debit card transactions may never be surcharged, even if the debit card is processed as a credit transaction.
Applicability
Credit card surcharges may be applied only to credit card transactions. Other payment types, including debit cards and alternative payment methods, are not eligible for surcharging.
Regulatory Compliance
Merchants are responsible for maintaining ongoing compliance with all applicable card-network and legal requirements. This includes meeting advance notification obligations, using compliant signage and disclosures, adhering to surcharge percentage limits, and respecting jurisdiction-specific restrictions.
By following these guidelines, dental practices can implement credit card surcharging in a way that aligns with card-network rules and promotes transparency with patients. Clear and upfront communication helps maintain patient trust and supports a positive payment experience.