While some of us may be proud that we just recently perfected our technology for credit card processing for small business, many of the biggest stores are ramping up their efforts to remove friction for purchasing, which includes removing the cashier from the picture. The surprising thing is that the technology is there for us.
The main arguments for optimizing people out of the transaction is, well, efficiency. Stores that can process purchases touchlessly will go faster, and result in more sales per unit of time. Naturally, the big box retailers are also dreaming of the savings from hourly payroll when individual employees can be minimized, or even eliminated from the process.
NFC (near field communication) is the main technological actor here. This is the same tech behind today’s smart wallet payments. But in a cashierless store, the turnstiles, inventory and baskets mark what is selected, and automatically charge the customer. Thanks to this no-touch tech solution, cashierless stores may actually be a solution to the problems of shoplifting.
First of all, smart wallet buy-in needs to increase. While each year sees an uptick in the number of people that comfortably use smart phones to pay with one or another NFC-powered mobile wallets, this is the most critical hurdle for the roll-out of the cashierless system, because in essence, a person won’t be allowed to shop without their smart wallet on and functioning.
Second, operational hiccups need to be dealt with. Just as with self-checkout at grocery stores, there still needs to be dedicated employees on-site to take care of any issues that come up. Thus, it’s not that the need for employees will be eliminated; there will just be a shifting redefinition of the human’s role in the job.
Another limitation is the type of store that this model is designed for: essentially, it will only make sense for stores that sell things that customers typically won’t have questions about. That makes it a logical fit for groceries, toiletries, and staple that are continually purchased. For now, at least, there doesn’t seem to be movement toward making it easier to cut out the human in more nuanced purchases, where a shop attendant’s information can help.
At the moment, the technology and infrastructure that is needed to make a store cashierless is prohibitively expensive. Amazon’s experimental cashless and cashierless store required about $1 million, in hardware alone. As the big boys learn from their experiments, small businesses interested in the best payment processing can look on, and wait for the approaching time that such technology will be reasonable.
Still, there are unique ways your business can progress. Credit card processing for small business is obvious, but also NFC payments and other software solutions perfectly reasonable ways to catch your business up with the latest technology.
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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.