Everybody’s talking about the future of payments, but the problem is, the future is here, and a large portion of people aren’t acknowledging it. The technology to pay for things with your mobile phone is convenient, secure—and not being used by a majority of consumers. If you’re a retailer who hasn’t yet implemented credit card processing for your small business, then you know your first step. But even if you have a swank new integrated payment system with all the bells and whistles, what can be done to better enable people to use it?
A number of stake holders argue that mobile payment’s relatively slow adoption rate isn’t due to any intrinsic default in what the payment systems are offering; would-be users are yet to see the value proposition in switching over to paying with mobile. Rather than blaming Apple and Samsung pay, retailers can actually do their part in creating value and meaning to this new payment system.
How, you ask? By looking at new technology as a tool that empowers you to do more, specifically, offer your customers better features and service. Here, Starbucks is the real power player. It’s successful initiative to get people to order and pay through their mobile app has seen them pushing way ahead of the national curve. In 1,200 of its locations, mobile order and payment claims about 20% of its order volume. Compare this to the 7% adoption figure for national retailers as a whole. It also shows how the streamlining in one part of the order chain can create problems further downstream. Starbucks acknowledges and is looking for solutions on what to do with the significant backup that can happen at peak times at the point of handoff.
Even if you don’t have Starbucks power for creating your own app and marketing it, you can still start somewhere. It can be as simple as posting a sign near the point of sale that says you accept mobile payments, and maybe even shows the benefits of trying it. This is just the beginning. There are also a variety of promotional options for retailers that could make sense for your business.
Yes. It’s faster, more secure, and makes your business look good. Is it costing you money not to have your customers adopt mobile payments? Maybe not. But in the long run, you’ll see that you’re fighting the flow of progress. Being able to offer the best to your customers sooner rather than later can only help you.
It can be debated how fast we’re going, but one thing we can basically agree on is that we’re moving forward toward a cashless society. If you’re wondering what to do next, be sure that you’re using the best possible technology for credit card processing for small business. Then you can begin to get the most out of your payment setup with mobile payments.
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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.