It can be easy to take things for granted from your end of the cash register. But it’s always good to think like a customer to ensure you’re speaking the same language. With swathes of new technology coming on the market each year, all purporting to make life easier, it’s important for owners to the find the best credit card processor for their small business, and in turn, the best fin-tech. To do that, though, it helps to think like a customer.
We’re assuming that because they’re in your store that they want what you’re selling. But apart from that, what are they looking for? It all boils down to two words: Speed and simplicity. The best transaction in the eyes of the customer would be no transaction. (This is actually what Amazon is experimenting with in the form of their no transaction, walk in, walk out grocery stores).
Imagine you’ve gone through the effort to begin accepting a new payment option, only to find that your customers are less than enthusiastic about using it. How ungrateful! This point, too, goes back to speed and simplicity. For the one transaction in front of them, it will take more time for them to figure out how to set it up, and what’s required of them—even if it will save them time for all the transactions after that. In order to encourage adoption of the technology, your store can consider organizing the next promotion around the new type of payment: “buy one drink with NFC, get one free!” or “QR payment happy hour! 3-5. Ask us how to set it up!” If you are going to put in the investment to start using a new technology, don’t forget the essential step of promoting it, so that your investment will pay off.
When a retailer decides to implement a tech solution, no matter when that comes in on the process, there is a risk that it can trip up the customer’s experience, rather than help it. One example would be implementing an NFC payment solution which in turn requires something on the customer’s end—signing into the internet, for example. Every new technology that is implemented will likely require some degree of effort. It’s important to ensure that you’re not overly complicating people’s lives.
Customer rewards programs are another area where it’s important to consider what you’re asking of them, and if it takes a toll on their overall experience. You want to ensure that the perceived benefit for the customer fully balances out the benefits your business gets from the program. Also, there may be an overall benefit, but it can’t trip up the line!
By and large, technology is making our lives, and our payments easier. The best credit card processors for small businesses open up a world of new possibilities that can, in turn, make your customer’s experience better. Just be sure to think like a consumer so that any new tech will fit their needs as well as yours.
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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.