As is often said of payment methods for your small business, never put up a barrier between your customer and their paying for a product. On a general level, that means accepting as many payment methods as possible; this is a growing list that includes NCF payment methods, QRC payments, and, yes, even Bitcoin. As the types of payments grow, the odds of your customer wanting to pay with one grows apace, and accepting credit cards as a small business becomes the bare minimum for offering flexibility to your customers.
In the same way, enabling your customers to pay in a way that works for them can also extend to the flexibility you offer them in paying for your products. Sellers of low-cost items online will most likely not bother with too wide a flexibility, but larger price tags, such as for sellers of luxury items, or those with monthly charges, may benefit from different options, like payment plans.
For anyone who hasn’t set up a payment plan before, the immediate realization you’ll likely have is that it takes legitimate effort to keep track of these payments. The last thing you want to do is to drag out the annoyance of hounding a customer for a payment once to the unbearable situation of hounding a customer for 4 or 5 payments over an entire year.
To fight this, it’s helpful to know what you’re capable of doing beforehand. In the event that a customer is behind in payments, it’s best to consider two possible options of repayment that can give a customer the flexibility to choose the payment plan that works best for them. That way, they will be more likely to pay. You’ll want to also ensure that the details of the agreement are fully known so that the customer has a clear picture of what is expected of them. Likewise, be sure that the discussion you had with the customer is well documented on your end, and you know the timeline for following up, as well as the threshold for when additional action will be necessary.
Additionally, it’s good to take a look at what kind of technology is out there for simplifying your life. Apps and integrations, such as Partial.ly, can streamline the monitoring of payment plans, and enable you to do more for your customers without causing a back-office nightmare for you. You can also leverage your Customer Relationship manager to keep track of payment plans, if you don’t intend to regularly offer payment plans as a solution. All in all, listen to your customers, and work with them, to the extent that it makes sense for your business. whether it’s accepting credit cards as a small business, accepting any of the other novel payment options out there, be open and flexible. It’s one way of injecting the “human” element that makes small businesses so great.
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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.