The retail Point of Sale market is growing fast. An estimate by Global Market Insights expects that growth to push the industry from its current $15 billion to $45 billion by 2024. This exciting growth always brings with it new technologies and capabilities. That being said, an array of technologies that already exist are helping to push that growth forward, while simultaneously changing customers’ expectations of what it means to pay for their purchases.
New tech is continually opening up small businesses to new markets, while also paving the way to better serve their current customers. Integrated payment solutions, which are used by roughly 25% of small and medium businesses, are creating the ability to easily reach new people. Poynt mobile POS, which we at Moolah have partnered with to offer free Smart Terminals to those who sign up for a Merchant account, offers an ideal example. It announced recently a partnership with AliPay, the payment company owned by China’s largest eCommerce company, Alibaba. This powerful partnership makes it possible to accept payments from the roughly 520 million registered Alipay users, making the shopping experience of tourists traveling to North America just a little bit easier.
NFC-enabled payments are rising in prominence, with about 18% of businesses saying that they offer the technology. For some, NFC is changing the meaning of face-to-face payments. Some larger restaurants are equipping each of their tables with a POS that can facilitate the ordering process, and accept an NFC payment right then and there. Still, just because you’re using fancy new tech doesn’t mean that the face-to-face interaction isn’t crucial. For those that like to include a human “face” in the process, Poynt can go wireless, allowing a server to go to the customer’s table and process a payment while the customer is seated, offering the convenience of NFC, or other payment, along with the comfort of an employee’s guidance.
It’s estimated that around 14% of SMBs are using payment-enabled mobile phones to process payments. This may seem a little low, but the smart phone payment system is comparatively niche, in that the odds are you are using one because the nature of your business requires you to accept payments on the go. The mobile is less convenient when you have a counter and a lot of payments to process. Still, the functions that mobile payments add to your repertoire can be wonderfully useful, such as cloud-based tracking of sales, which can make data across a whole mobile sales team instantly available.
Some of the above functions are made possible with the Poynt mobile POS. Other functions are made more convenient by having a great merchant account provider, like Moolah. What they all share in common is that they’re growing.
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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.