These days, most sales involve credit or debit cards, so as a business owner, in order to get the sales you want, it is important to be able to accept card transactions. You’ll need hardware, like the Poynt POS or other such point-of-sale; you’ll need software to help with all card transaction needs, but it is important to also consider how those transactions are processed. Typically, you’ll need a require a business to have a merchant account.
A merchant account is basically a bank account for credit, debit, and other card payments. A merchant account is different than a business or personal account. When you receive a payment, funds go directly into your merchant account first and are then transferred to your business checking account.
Merchant accounts are necessary for working with merchant services providers in order to process payment transactions. You may choose to open a merchant account if you want to accept card transactions and do so as safely as possible, as merchant accounts can reduce errors in accounting, improve security, reduce shrinkage, and minimize the risk of data breaches. Though third-party payment-processing such as payment aggregators like Square can be quicker, setting up a merchant account has its advantages for small businesses because of the security benefits and speed of payments. It’s your very own account, after all.
Setting up a merchant account does not have to be too complicated, although there is an application process. As a starting point, it may be good to do some research on merchant services providers. Typically, in order to open a merchant account, you will need to create a business profile for the bank you are considering opening an account with. Thus, if you do not yet have one, it will be necessary to set up a business profile. Banks will take several considerations when looking at your application for a merchant account. They may look at the size of your business, your credit history, the costs of your merchandise, your monthly transactions, the types of payments you plan to accept, whether or not your business is seasonal, and even how much of your business is conducted online. After you create your business profile, it is time to apply, and it is a good idea to apply to several places because your business profile and the considerations that are taken when considering applications can affect the rate you are offered for your account, which can vary. Make sure you know what you are signing up for. With Moolah, you know what you’re getting, as our rates don’t change.
Once you set up your account, it is time to watch your sales come in; that is after you set up your point of sale. Merchant account providers may include terminals with their accounts. Here at Moolah, our services include the Poynt POS, which simplifies payments and accepts cards of all types. With the Poynt Smart Terminal and your Moolah account, we’ll make accepting payments secure, accurate, and convenient, so you’ll know your money is going, and when.
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.