As millennials continue to come of age, and claim their share as the biggest-spending cohort, attention is shifting to figuring out what that means for the small businesses hoping to make their payment processing fit for them. There is much ado about what makes a millennial’s approach to shopping and payments different, and what the best credit card processing companies for small business can do to cater to their unique views, their association with technology, and what that means for both online and in-store shopping.
Possibly from growing up in a hyper-connected world where opinions and reviews are easier than ever to come by, it’s important to make sure that your products and your store is able to accommodate the average millennial’s skeptical inquiry into the “rating” of products. Naturally, this comes into play with eCommerce. If you’re selling things, be sure that your website displays ratings in an easy-to-find way.
For in-store purchases, run with this hunger for ratings and info. If, for example, you sell something that is highly rated online, put up a sign that shows it! “2,000 5-star reviews on Amazon!” for example. This validation may be the thing that pushes a person to buy. You can even go all-out with QR codes on prominent products, which most people will know what to do with. These can link to in-depth descriptions on your website, for a truly interactive shopping experience!
Likewise, when a product is loved by a millennial, they share it (or talk about it) in some fashion, whether that’s in real life, or online. In order to reap the benefits of this tendency of millennials to speak their mind about the stuff they love, make sure you give easy opportunity to share. Up your website’s share game with quick, easy social sharing integrations, with snappy messaging: “look what I just bought!”
In store, you can bump up the social aspect of your shopping experience with cool, simple referrals: a 5% off for a friend card, for example, that bags them a free gift of some kind. Some of the best POS systems go further, enabling you to ditch the card for e-referral systems, that carry the added benefit of making the whole referral transaction faster.
Last of all, if you want to speak the language of your millennial customers, that you go with the added flow of technology. New ways of paying mean that you’ll have to accept a wider variety of payments, from NFC payments, to the standard payment cards, and more. This means that you’ll have to have the best credit card processing company for small businesses, in order to have the tech to accept what comes at you. Moolah understands this, and integrates with the hardware and software you want to use. It’s the millennials’ world. Maye sure your tech is speaking to them!
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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.