If your business entails selling tangible goods, you need a reliable system to track inventory. Inventory is money sitting on your store shelves, and inventory shrinkage constitutes a major financial loss to small businesses. According to Forbes, U.S. retailers lose $60 billion a year to inventory shrinkage. Fortunately, technology is coming to the rescue. Smart points of sale such as the Poynt terminal offer the business owner a streamlined system to process payments and manage inventory with an integrated suite of tools.
So how does your inventory shrink? Some items get lost or broken. If you deal with perishable goods, a sizeable portion of inventory may end up in the dumpster. Especially in the food industry, where much of the inventory is not only perishable but also transitory, tracking inventory can be a nightmare. Ingredients get combined with other ingredients to become prepared food. Both Ingredients and prepared food spoil. Picky customers return food they find unsatisfactory and staff indulge in a bite of food or a drink. So how much food was actually sold versus what came in? How much inventory does your business lose? As the business model becomes more complex and includes more points of possible loss, it becomes even more important to hone your internal inventory management system, and increasingly, cloud-based software is the way this is done.
Another major source of shrinkage is theft. If you don’t have a reliable inventory management system, chances are you have no idea how much inventory is walking out the front door of your store. Shoplifting operations have become increasingly sophisticated, often involving multiple individuals. And it’s not just shoplifters you have to contend with. Fortune magazine reports that 43% of lost retail revenue in the U.S. results from employee theft. Internal theft might include employees taking items for themselves, failing to charge friends, offering unauthorized discounts at checkout, or otherwise working in tandem with shoplifters.
Relying solely on employees to conduct physical inventories leaves you especially vulnerable to insider theft. A dishonest employee may intentionally miscount inventory to cover theft. Even with honest staff, using pen and paper to conduct inventories leaves a lot of room for human error.
Utilizing an integrated POS like the Poynt terminal alongside integrated inventory management tools eliminates a lot of room for both intentional and unintentional inventory mismanagement. It also saves you time, allowing you to focus on enhancing your business. Importantly, with cloud-based technology, you’re able to track inventories across multiple sales channels, such as when you have a warehouse, multiple locations, or if you sell online. This complexity necessitates a modern inventory management solution.
Effective inventory management is your best tool to reduce loss. In the retail business, where margins are often thin, decreasing inventory shrinkage will keep your business robust and position you for your next phase of growth.
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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.