Way back in 2012, almost 65% of respondents to a Pew Research study felt that by 2020, mobile payments would have replaced cash and cards as the dominant source of payments. As we quickly approach 2020, it’s certainly not looking to have been that far-fetched of a guess. It would be interesting to see what the numbers to the same poll would yield as we enter 2018.
Progress isn’t letting up. Square, which broke just under a decade ago, is beginning to feel a little dated, and has even begun to diversify with the service mash-up with SnapChat – Snapcash – for which it does the payment processing. Still other companies move into the point of sale game, hoping to offer the best mobile POS system, and many retailers find themselves just trying to get the basics, and make sure they aren’t buying a POS terminal that will be outdated soon.
The big guns behind NFC payments, Apple Pay, Android Pay and Samsung Pay, have been doing their best to up adoption rates for the convenient contactless technology. There are still other technologies out there that are doing their part to push innovation beyond the card.
You’ve seen these everywhere, from movie posters to potato chips, but these information-packed black and white squares are useful for more than just driving traffic to a website. Though they’ve been around since the 90s, QR for payments is still a relatively new concept, but one that is gaining traction fast. It makes it easy for a customer to simply pull up a QR code on their phone, which is then scanned by the merchant. The process can, however, go the other way. As consumer sentiment continues to grow for the codes, we’ll see if a clear leader emerges.
The novel technology developed by Apple is still in the early stages of being implemented in the real world, even though it came on the scene a few years ago. Comparable to NFC, but with a much wider reach, stores become able to communicate with your mobile device when you get in proximity to a store’s transmitter. Time will tell whether the technology really takes off, though; if done wrong, it has the potential to be nothing more than a major annoyance that alienates customers. This slightly comical IKEA ad explains it all: “eat cake now!” Still, it’s worth taking note of. More than payments, iBeacon tech really seems to shine for coupons and in-store promotions, although payments may have a place in there, too.
All this gives retailers plenty to think about. If you’re just making sure your bases are covered, and if you’re looking for the best mobile POS system available, reach out to Moolah. Our partnership with Poynt makes it possible for us to keep you up-to-date with a Smart Terminal for free. How’s that for path breaking?
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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.