When you run a small business, you’re constantly in the position of making decisions. Are those decisions being informed by fact and information, or emotions and myth? Believe it or not, the best credit card processing companies should be able to help you with that question. Let’s look at a few commonly accepted myths that can lead to poor decisions.
For the average small business, shooting to be the low-price leader is not an option. Recently, Amazon has made this abundantly clear to many small business retailers. What can be done to compete with the big boys is putting effort into your business’s value proposition. Being local, human, and maybe even a little bit cool, can give your customers an experience that gets them to come back, even if it means paying a little more. Relationships can play a big part too. Having a payment service that is automated, and allows you to collect info from your customers can help you reach out to them with information on offers and events, giving an enriching customer experience that Amazon, Walmart, and Starbuck’s simply can’t compete with.
Behind this Hollywood-fueled myth is the assumption that your good intentions are enough to carry your business to success. The truth is, according to Bloomberg, 8 out of 10 new businesses will fail in the first 18 months—regardless of good intentions. So even if finally opening those doors on the first day of business feels like you’ve arrived, the truth is, the struggle is just beginning. Your payment technology can help with this. Apps that are developed to assist small businesses keep track of inventory and what customers are buying can give you a decision-making edge. This is why Moolah integrates with a variety of applications that are there to help businesses. Check out the list to see what’s available.
Throwing a lot of money at any goal provides temporary results. Imagine your local small business opted to spend an insane amount of money—like a million dollars—on marketing. They do it all, from a comprehensive social media marketing campaign, to a Super Bowl Ad. Within a week, if it goes well, they would have more customers than they knew what to do with. In six months? They’d be right back where they started. If your growth isn’t part of a bigger overall plan, you’ll get a flash in the pan, at best.
The same goes for all expenditures. Before rationalizing those big purchases by telling yourself, “Gotta spend money to make money,” ask yourself how the purchase fits into your plans for the business.
Moolah’s aim is to be the best credit card processing company by helping businesses spend less money to make money. Whether it’s through offering low rates of 2.69% + $0.29, or offering a free Poynt Smart Terminal to get you accepting credit card payments right away, we remove the barriers—and the myths, that are getting in the way of your next step.
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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.