If you’ve purchased something in the past 24 hours, odds are that somewhere near you, either crumpled in your pocket or your purse, wadded in between sofa cushions, or pushed down in some inaccessible part of your car, there’s a little piece of thermal printed paper that says how much you paid for that donut, toothbrush, or on-the-go lunch. The paper receipt: it’s that theoretically useful invention that, for most people and most purchases, is practically useless. In entrepreneur-speak, that means receipts are an area of payment processing that is ripe for disruption.
The sea change that has, more than any other, pressed forward the change in the way we document transactions is the monumental shift to mobile commerce. If you buy something from your mobile device, effectively the only option for you is to have that receipt emailed to you. Suddenly email began taking on the work load of maintaining these transaction records.
Simultaneously, brick-and-mortars are using new technologies that are facilitating the use of electronic receipts. With so many small businesses switching over to novel technology when they begin accepting credit cards for small business, these shops instantly find themselves set up to give their customers more options than just shoving the paper receipt in their face. One viable option, for smaller purchases, at least, is the “no receipt” option. Allreceipts, can allow users to store and manage receipts on their mobile devices. It’s a lot easier, and actually way more useful at, say, tax time, than the old shoe box full of receipts. Moolah, which prides itself in all aspects of transitioning to accepting credit cards for small business, particularly through the most up-to-date technology available, is both excited and optimistic for a payment future that is more efficient and more sustainable. Still, we offer a moment of silence to that most well-meaning of documents: the paper receipt.” rel=”noopener” target=”_blank”>This article highlights just how much effort goes into the printing of that little piece of paper that gets carelessly wadded up—including 250 million gallons of oil, 10 million trees, and a billion gallons of water—and that’s just for the United States alone! The culture is changing as awareness grows.
On the business side, it wouldn’t be disruption without full-blown upheaval, and brand-new opportunities in transaction records. Tech is changing the culture, while also providing an alternative for those situations where you actually DO need a receipt. It’s a completely new take on proof of payment, and it can fit beautifully into a new strategy for accepting credit cards for your small business. True, many point of sale terminals offer new tech options, like emailed and text receipts to streamline the transaction process. Going even a step further, cloud-based app solutions, such as the solution Allreceipts, can allow users to store and manage receipts on their mobile devices. It’s a lot easier, and actually way more useful at, say, tax time, than the old shoe box full of receipts.
Moolah, which prides itself in all aspects of transitioning to accepting credit cards for small business, particularly through the most up-to-date technology available, is both excited and optimistic for a payment future that is more efficient and more sustainable. Still, we offer a moment of silence to that most well-meaning of documents: the paper receipt.
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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.