You don’t have to be a fortune teller to see what’s coming in certain areas of tech. With knowledge of the payment options that are already here, it becomes simple to see what’s just around the bend. Let Moolah, one of the best credit card processing companies for small business, take you on a quick tour of what to look for in the (probably very) near future of payments!
“Merchant pay” refers to the process of using a retailer’s own mobile wallet to complete a payment, typically through an app that’s been downloaded. It’s quick, convenient, and on the rise. One of the fore runners is Starbucks, which, as of 2017, reports that mobile order & pay accounts for 10% of its in-store sales, and it’s set to keep growing.
The difference that makes this possible is the shift in customer perception, which in turn, has come from how convenient the advances in tech are making these forms of payment. As a result, a growing number of people want to see more of these types of transactions. Retail wallets hold dramatic potential on into the slightly more distant future, too. Imagine in-aisle scan-and-go technology being incorporated with a mobile wallet. In effect, you’d be able to walk around Target, scan and bag all of your items as you go, and simply walk out of the store, without ever waiting in line. Although it may not be happening in 2018, that kind of ease is getting people excited for Merchant Pay.
We all know well enough about EMV technology. A review in a nut shell, EMV is more fraud-resistant because the imbedded chip in your card generates a unique token which can’t be duplicated. Going forward, this tokenization method may be implemented across e-commerce channels. This is rapidly becoming the main arena of fraud, as criminals (due to the new EMV securities) are searching for vulnerabilities in these channels. “Omnichannel tokenization,” a formidable-sounding technology, will likely begin rising to the occasion in 2018 to combat fraud and protect merchants and customers as shopping continues to move online and away from POS terminals.
You may have noticed how those EMV transactions are, for the most part, speeding up. People hate to wait, and this also rings true for account-to-account transactions, such as those that take place when you pay your utilities, or pay the salaries of your employees. Real-time fund transfers are the goal, and providers are trying their best to offer technologies that make this possible, while not causing upticks in fraud. Things will likely speed up as new tech shake ups, such as PSD2 in Europe, approach.
What’s on your horizon for 2018? If you find yourself looking for the best credit card processing for your small business, Moolah may be in your future.
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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.