When looking for payment processing for your business, you may have come across the terms Merchant Account, especially when compared to processing aggregators. At Moolah, we offer dedicated merchant accounts. Before we dive into the meaning of that, let’s start with the rates.
Better Value
Stripe offers a standard processing fee of 2.9% + 30¢. We offer 2.69% + $0.29 with a $19.95 monthly minimum, which means Moolah will charge you 2.69% + $0.29 of your sales for the month or $19.95, whichever is greater. This is a solid saving over Stripe assuming your processing more than $500 in credit card sales each month.
What exactly is an aggregator?
One subtle but substantial difference between Moolah and Stipe is the fact that Stripe is a processing aggregator, whereas Moolah offers dedicated merchant accounts. Merchants who sign up for Moolah are given their own account, much like the checking accounts that banks give. The only difference here is that an acquirer, a type of bank, takes on the risk associated with processing credit card transactions. On the other hand, aggregators like Stripe aggregate, or pool together merchants into groups. Merchants don’t have their own account, and payments are instead processed jointly with other merchants. What does this mean for you? Read on.
Faster Processing
As providers of dedicated merchant accounts, Moolah is able to provide faster payment processing. We deposit funds into your checking account within 1-2 business days, and for a slightly higher fee, we can even get you next-day deposits! If you’re part of Stripe’s aggregator system, you may have to wait a bit longer for funds to be transferred, typically up to 7 days from the date of your first transaction.
A Personal Touch
With Moolah, you are the merchant of record within the credit card eco system. That means that when you have an account from Moolah, you can rest assured that our underwriters have taken the time to review and understand your business from the get go. Those served by aggregators carry the burden of a higher risk for unexpected account freezes and holds as there is no attention paid to your individual business when it is originally turned on. We like to think we’re able to know you better.
We’re Upfront and Honest
There are some advantages to an aggregator system. Because there is no underwriting process, aggregators tend to have streamlined application processes, getting you up and running with their systems faster. This simple process means the barrier of entry for aggregators is lower.
Still, the benefits of a dedicated merchant account, especially one with, simple flat rates like Moolah, outweigh the slightly longer underwriting process. If you’re looking to benefit from the processing power of a dedicated merchant account, take a closer look at Moolah today.
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.