In the Age of Amazon, many businesses seek ways to differentiate themselves from the low price, buy-anything, same-day shipping behemoth. A majority of stores aren’t able to compete with the convenience and scale of Amazon, but what they can do is craft a shopping experience that is unique. Partnering with the best credit card processing for small businesses can actually open a business up to a range of tools to do just that.
One way to differentiate from Amazon and the other Big Sellers is to curate, with a “less-is-more” inventory approach. Where Amazon offers everything, you offer a select group of products that make an impression. As a growth strategy, “Less is More” can feel counter-intuitive, but if done right, you’ll be enjoying a wide swathe of benefits that are great for your bottom line.
For an example, picture a specialty donut shop. Such shops could certainly go off the deep end in crafting dozens of unique baked offerings that wow their customers with choices. The downside is that more varieties of donuts mean the production line needs to put in more hours to make them. Also, it means more types to track, for the purpose of knowing how many batches to make for tomorrow. It’s all doable, but it can create pitfalls. The alternative is to curate a selection of, say 6 to 10 donut types. Right away, the perception of the store becomes different. The shop looks more high-end or boutique, as opposed to the dime-a-dozen donut shop by the freeway. Your goal is to do what you do well and push people toward the few options you have, rather than humoring the customer’s limitless preferences.
It can also generate demand. If you offer a special donut only on the weekends, or only a few times per month, you can leverage this scarcity to generate buzz. With the right promotion, all of a sudden you have an event on your hands. This same principle applies to a range of businesses, from fashion, to cookware, to outdoor gear.
Naturally, not all businesses can effectively curate their product lines. For example, if you sell car parts, you have to do your best to carry an encyclopedic parts catalog worth of products. For this reason, these and similar businesses are gravitating toward eCommerce, where customers themselves can easily look up what they need.
Curated inventory works well for fashion and donuts, and other such businesses where your customer is looking for a shirt, or a dessert, rather than one specific type or brand. If your curation skills are top-notch, you will encourage your customer to buy the item you have decided to carry.
Still, customers certainly value choice, and you may find yourself in a position where you can benefit from both a curated brick-and-mortar inventory and a robust eCommerce platform that offers the more expansive inventory that your customers want to see. It’s called multi-channel selling, and many businesses are finding that it has a lot of benefits. You’ll want to make sure that your payment processor, your inventory management, and your order fulfillment processes are able to keep up. Shopify is one of the most widely used solutions out there to do this, and, in an effort to offer the world’s best credit card processing for small business, we’ve made sure that Shopify integrates beautifully with Moolah.
From the most extensive catalog of products to the uniquely curated shops, your business is your art, and we give you the tools to succeed at Moolah.
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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.