Not having the cash on hand to continue operating is a nice and concise way to define business failure. Keeping abreast of cash flow is, naturally, an essential task, which can be tough without the right tools. Likewise, amid the busy daily grind of operating a business, the more crucial metric of profitability can easily fall by the wayside if owners are left to shoulder the weight of this administrative task alone. Luckily, the choice of accepting credit cards for your small business can help.
The simplest way is, unsurprisingly, the worst way: you eyeball it. This means more or less taking mental notes of how much is going in and out of the company. This inevitably produces the archetype of the penny-pinching owner, who holds off on buying basic necessities, like stationery.
On the other hand, if you generally know your profitability month-to month, in addition to your cash flow, you’re going to be set to make informed decisions. As in so many areas in life, knowledge dispels fear. If you’ve got a simple place to check cash flow against your projected profitability goals, you can go ahead—splurge on those staple refills, sponges, and any other purchase you were putting off for later.
Ok, so we want to monitor cash flow and profitability. Before, it was on the owner to crunch the numbers, and get information on cash flow, gross profit, net profit, and other insights into a business’s health. It was hard, time-consuming, and more often than not, downright depressing.
Upgrading to Moolah helps to change this. Making the leap to accepting credit cards for small business is the perfect opportunity to fully benefit from the payment data that is automatically tracked by the payment processing technology. A host of “back office” software systems make it so that you have instant access to these metrics. You’ll be able to clearly see your business’s profitability, in addition to managing your cash flow.
Speaking of cash flow, did you know that Moolah is a dedicated merchant account? This means your transactions are processed more quickly than with Square, one example of a processor who aggregates lots of transactions and processes them in bulk. What this means is if a dependable cash flow matters to your business, a merchant account like Moolah may be the way to go.
In summary, when crunching the numbers, don’t get cash flow and profitability mixed up. If seeing everything matters, get onboard with a merchant service that can hook you up with analytic bookkeeping information that makes it easy to track the health of your business, and if quick processing and dependable cash flow is important to you, then a dedicated merchant account like Moolah may be your best bet.
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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.