At Moolah, we do our part to be the best credit card processing for small businesses, and part of that is keeping on top of how the industry is changing. With attention to the ever-changing landscape that is the financial services industry, there is occasionally a chance to learn how things are done in other markets in other countries, while at the same time learning about how things are done here in the US.
One such opportunity has arisen in the form of Monzo, one of the UK’s most up and coming financial institutions. Monzo recently announced its plans to enter the US. It’s a testament to just how globally connected the world of finance is becoming. Monzo is a truly mobile-only institution, with no brick-and-mortar locations in the UK.
Certain little hiccups are really only a problem if you align more with the “old way” of banking; for example, money will have to be transferred into a Monzo account from another US bank account if you can’t get your salary paid into your Monzo account through direct deposit, something not too likely to slow down the average consumer that already uses direct deposit and Zelle or other digital money transfers. With a raft of services and features designed to help the average consumer better manage money, transfer money to their friends, and pay for things, Monzo aims to change the way finances work, all without bank branches.
While everything about Monzo feels new, there is in fact competition here across the pond. Simple, which has been on the scene ¬¬¬for a while, is a branchless bank that is leading the charge for putting all those complicated financial processes inside your smartphone. Chime is another rapidly growing competitor that promotes bank-free money management.
Monzo, like many UK banks, retailers, and consumers, has been relying on contactless cards for payments for a good while. This poses something of a conundrum for Monzo as they move into the US market, where contactless cards are yet to really be adopted in earnest. A 2018 report has figured that just 3% of cards out there have contactless payment ability—we’ve only just made the transition over to EMV chip technology a few years ago! Compare this to an impressive 64% of cards in the UK that are touchless. The choice, then, is to push the US market forward or fall in step with the older technology of the US market.
Another hurdle is that at rollout, the bank won’t have integration with Apple Pay or Google Pay, which might slightly disincentivize some against its use.
On the small business side, the very first step you’ve got to take is being able to accept these touchless payments, whatever the card or app being used. Moolah makes it easy for you by delivering the best credit card processing for small businesses, as well as the best tech for your business, like the Poynt Smart Terminal, which enables you to accept touchless NFC payments. Do your part, and you’ll be ready for any bank that crosses the pond.
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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.