A brand-new card technology was revealed at CES 2018: the Wallet Card by Dynamics Inc. In some ways it looks the same, an in other ways, it stands to change consumer’s relationships with their card, and credit card processing for small business. Let’s look at some or the key features:
With the tap of a button, a user is able to toggle between their many cards, including debit, credit, and even prepaid, one-time use, and multi-currency cards. Another very cool feature is that the card has a screen that displays account information.
Banks and their customers will like the fact that the card can be issued right away: no longer the need to issue a temporary card and mail the real one later. Consumers can activate the card and start using it the same day.
Security will likely be one of the first issues that comes to mind. In a novel approach, a bank can quickly hop in and delete a compromised account number if needed, and then turn around and replace it with a new one. In other words, when an identity theft happens, you don’t have to wait to be mailed a new card: the new card is simply downloaded onto your Wallet Card and you’re on your way.
That screen we mentioned opens the consumer up to a wide range of new functionalities that your old credit card could only dream of. Instant access to account information is the most obvious benefit; card holders can also be notified quickly of suspicious activity, get notified of remaining balance for one-time use cards, and be notified of promotions to take advantage of.
In case you were worried about yet another device you have to worry about keeping charged, and being locked out of all your accounts when the card’s battery runs out, worry not. There is a self-charging organic chip that takes care of everything for you, through normal use.
Practically everyone loves to hear about a new technology, especially when it reinvents an everyday task like payments. The question is, does the all-new Wallet Card have legs? A more specific way of asking the same thing is, will the Wallet Card be able to contend with smart-phone-based mobile wallets, and even woo those users to this payment system? In the payment world, where there is growing momentum away from cards and toward NFC payments, is a card with even more cards in it what the world needs? On surface level, it appears that most NFC wallets are able to do everything that the Wallet Card can, and it’s done from your mobile phone, which you already own. That will be the main challenge for this novel card technology.
Moolah works to stay abreast of these changes, and bring them to our clients when it makes sense, as credit card processing for small businesses is always in a state of growth and change. We’ll see what is in store for Wallet Card as it gets tested in the real world.
Thank you for scheduling. If you have any questions, please contact us at 800-625-1670.
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.