Feel like you fit with your credit card processing company for small business? What about when you’re a medium-sized business?
One of the biggest difficulties when approaching decisions as a small business starting out is planning ahead for growth. Any successful entrepreneur will tell you that you have to prepare and plan ahead for what you don’t know. This happens when choosing locations, selecting your inventory, and in many other ways.
Did you know that it also happens with your credit card processing company? The range of approaches, products, and systems that make your payment solution mean that there are a lot of things to consider when selecting the best option. As you grow, what worked before may not continue to be the best option. So what does it mean to outgrow your solution? And how can the discerning business plan ahead so that your payment solution drives success, rather than holding you back? Let’s look.
One thing that needs to be considered is the rate structure for processing transactions. Some companies work to try and keep their rate structure unclear, variable, or otherwise tough to understand. This often serves to keep the service looking inexpensive, especially at the outset, where processing volumes are lower. When a company grows to the point that they are processing more and more transactions, they may eventually realize that they’re paying way more than they should be. Taking the time to crunch estimated future numbers, in addition to making sure that there are no hidden fees, is key to making sure you won’t outgrow your processor.
As a company grows, more and different technology may become increasingly necessary. Whether it’s eCommerce or in-store transactions, you want to be aware of potential future limitations your technology may place on you. This may happen in a range of ways. Your point of sale, for example, needs to be flexible enough to connect in all the ways it needs to. If you plan on growing to more than one location, you’ll need a merchant solution that can coordinate the multiple sales channels that you’re dealing with and enable you to glean insight from the transaction information your store generates.
On the web, you want to ensure that your eCommerce solution has robust features. At the outset, you may be content with a simple cart and checkout feature. But in order to maintain growth, more features may be beneficial, such as integrations with fulfillment and inventory services, and a range of others.
To summarize, to ensure that you and your credit card processing solution stay a good fit for each other, the name of the game is flexibility. Moolah does just that for those that sign up for our dedicated merchant accounts. We also make a point to be clear and transparent about our pricing, and collaborative with our approach to systems and technology. The result? We may just be the credit card processing company for small business that you’ll never outgrow.
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.