Finding clients can be hard enough. But getting them to pay on time can be another battle. A single unpaid invoice can cause problems for your business. Multiply that amount, and you have a real struggle. Because of that, it is important to do what you can when accepting credit cards for small businesses to minimize late payments and their impact on you. Here are some simple strategies.
It is important to be prepared for late payments. Make sure you have a steady cash flow. Aim to have more than enough to cover the costs each month, so that if someone delays payment, you will be able to cover the expense yourself. You can help this by minimizing your expenses and saving as much as possible. Doing so will help you survive late payments and not feel the impact that they can have if unprepared.
Reinforcement can help you foster timely payments with your clients. Reinforcement can be either positive or negative, and both have their benefits. With positive reinforcement, you can try to increase the chances that your clients will pay on time by giving them some type of reward. This can be something like a small discount that will be applied when an invoice is paid on time or ahead of schedule. Discounts for paying upfront for many months of service is an example. Negative reinforcement involves someone doing something because it prevents something negative from happening. If a client receives some type of negative consequence for late payments, such as a late fee, they’ll be more likely to pay on time in order to avoid this consequence. However, you approach it, try to find a reinforcement strategy that will work with you and your clients.
Another strategy that can minimize late payments is talking to your clients about the issue. Make sure to be professional and courteous, but clearly communicate about late payments if they have become an issue with a client. You can try to be proactive with your communication. Send scheduled reminder emails about an invoice. Make a call and find out if there’s any way you can help them pay on time. Keep track of your communication throughout the process, so that you can show clients all the attempts you made to get their attention about the issue if it becomes more of a problem. Importantly, it’s good to clearly communicate with your clients about your expectations from the beginning of your relationship, so that they know what they are. Get them to agree on your payment terms. Then if payment becomes an issue, it won’t be a surprise to them if late fees become necessary.
It is important to provide a variety of payment options to your clients. Doing so can increase the chances that they will pay on time. Think about accepting credit and debit card payments, ACH payments, checks and eChecks, social payments, and any other type of payment they may prefer. Accommodating your clients’ payment preferences can go a long way. Accepting credit cards for small businesses is more important now than ever. We at Moolah do our best to help our clients with their payment processing needs. We know that clients may prefer using credit cards. That’s why accepting credit cards for small businesses is one of our main functions. If you are considering ways to accept credit and debit card payments, we hope you will think of us.
Thank you for scheduling. If you have any questions, please contact us at 800-625-1670.
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.