The Instagram marketing ecosystem is joining the ranks of Facebook Messenger in offering the ability to pay for things, and even schedule appointments at your favorite spa, restaurant, or other selfie location. The announcement was relatively quiet, most likely because at the moment, Instagram’s payment structures are still being developed. Essentially, it should be viewed as a limited trial run. Still, any business that uses Instagram will instantly recognize that a native payment feature fits hand-in-glove with Insta’s marketing powers. If and when the company fully rolls out these payment features, plenty of small businesses are going to be ready and rearin’ to get on board. Why? Because comfortable payment methods that ask less of the customer and utilize what they’re already using is always a great idea. Accepting credit cards as a small business is one thing. Very soon, your payment tech advancements will be gauged on how well you leverage native payment options like Instagram.
Marketing, in a general sense, is designed to channel that “buy” impulse that is excited in the customer when they come into contact with good messaging. Naturally when there are fewer steps between the product and the customer’s wallet, then a greater percentage of people will take the plunge and purchase the thing.
This is what Instagram Payments is all about. As a company, you’re already putting your product out there in front of people. You’re leveraging Instagram’s highly visual, engaging, and scroll-centric atmosphere to reach your audience. With a native payment option, your message can go directly to their wallet, so to speak, and you can eliminate the clicks that are typically required to navigate away from Instagram, access the website, and check out in the standard way.
Native payment options are really taking off, as technological advances lower the barrier to getting into the payment game. What this means for companies that sell online, is that your system needs to be flexible enough to work with these new additions to the multi-channel ecosystem, in order to stay relevant. As I said, Instagram wasn’t the first, and won’t be the last company to start leveraging its prominence to offer a viable and useful payment option. You don’t have to accept every single payment type out there, but as a small business who is looking for the best payment processing out there, it makes sense to keep an open mind, which will allow you to adopt these new technologies and not get left behind by them.
Remember: just as was said before about the question of whether or not to accept credit cards as a small business, every payment method you don’t accept is a barrier between you and some of your customers—and who would want to do that?
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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.