Do you like your eCommerce payment processor? If your payment system is on autopilot. You may not even have a yes or no to that question. If you are looking for a moment of introspection in relation to your eCommerce solution, as well as your credit card processing for your small business, this article is a good place to start. Here are a number of red flags that can open you up to the possibility of switching.
One such red flag is hidden fees. Ask yourself: am I paying more or less what I expected to pay when I signed up? This may not be as straight-forward a question as it appears to be. Sometimes a given payment processor makes sense and fits well when your company is at a certain processing volume; as you grow, it’s important to ensure that you aren’t incurring any sneaky fees that can take the wind out of your sails.
Wouldn’t it be nice if, when the customer clicked the checkout button on your website, the funds instantly materialized in your account? Unfortunately, most payment processing, depending on the type, necessitates some kind of latency as you wait for funding. Does your processor offer next-day funding? Depending on your business and your cash flow needs, you may be putting your business at a distinct disadvantage if you have to wait 3 to 5 days for your money to appear.
Going with a payment processor shouldn’t be like driving a used car off the lot. Practically anyone who uses a payment processor will have questions—especially when it comes to making your website’s checkout process seamless. Having to chase down a customer representative is the last thing you want as a small business owner. Not getting the help you require in a timely fashion is a big red flag.
In today’s payment landscape, consumers are more cautious than ever about risks to their data. In the same vein, a growing number of consumers are growing wise to the risk, and will not use a website that doesn’t display some kind of trust mark that shows their payment processing can be trusted. With this in mind, it’s important to ensure that your payment processor does the basics right. Moolah is powered by Authorize.Net, which is one of the most trusted names in Credit card processing for small business. When you sign up for a dedicated merchant account with Moolah, you benefit from all that Authorize.Net has come to stand for, not least, the ability to display the Authorize.Net seal on your website.
Keeping these things in mind will ensure that you continue to have a beneficial relationship with your processor, and your website continues to stay attractive to your customers.
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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.