In a lot of ways, people who sell tangible products should take satisfaction in how straight-forward their business models are. If you’re a t-shirt company, a customer agrees to buy a certain number of t-shirts, and you, the business deliver. Barring any hiccups in delivery, or customers who aren’t satisfied with the thing they themselves ordered, what you see is what you get. When it comes to credit card processing for small businesses, minimizing issues with payments starts and ends with a satisfied customer.
When what you sell is a service, the number of ways that a client can become dissatisfied rises exponentially, especially in areas where your deliverable is creative, subjective, or intangible, as is the case with design work, consulting, or other such areas. As long as you’re offering your absolute best product, what else can be done to ensure that your client stays happy, that your agreement is honored? Furthermore, when is it time to let that client go?
Whether we’re talking eCommerce, or just accepting payments for your services using credit card processing for small businesses, there are certain things you can do that raise the chances that both you and your client wind up satisfied.
Just as with buying a complicated piece of machinery, clients want to know as precisely as possible what they are getting. For intangible deliverables, this means that you want your contract and scope of services to be crystal clear. Especially in the world of design, “scope creep,” where additional little tasks and projects find their way onto the plates of the team, at no added cost because the contract has already been signed. Making a contract/scope of work document that is specific and covers all the bases can go far in making it easier to navigate an ongoing client relationship.
Never put a barrier between your client and paying for your services. With a robust payment solution, you can reduce the likelihood that a client “forgets about” paying that invoice. If recurring payments are part of your business, a solution like Chargify (which integrates beautifully with Moolah) can really simplify your life.
It’s never an easy decision to let a “problem client” go. While it is true that your sanity is the most important thing, client satisfaction must be your most sought-for commodity. If your business relies in any form on word of mouth, (and what business doesn’t?) the best favor you can do for yourself is to ensure that a client doesn’t develop a negative opinion of you, which can easily reverberate and grow into a negative reputation if you aren’t careful. Say an interior design project goes wrong, and you’re on the verge of ending the project. Be sure you are fully aware how much it will cost you to cut that client free. How much is a referred client worth to you? Even if you have to take a loss on a project, compare that loss to the possibility of losing a referral from that client’s negative experience. If you can make good with them, a good reputation and possible referrals may be far more valuable to you in the long run.
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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.