It seems that with every innovation the world around us is getting less physical, less concrete. Contactless payment is on the rise, meaning often times, your customer’s card stays in their wallet. Ordering food can be done online, with a go-between picking up and dropping off the delivery to them. Even the decision to have a physical location is being reconsidered, as logistical expenses continue to move in the direction of eCommerce over corner store retail.
All this movement may point someone toward the conclusion that, when it comes to interacting with your customer, less is becoming more. While some things shift in the way we interact with our consumers, still, some things never change, and any optimizations that affect that essential relationship should not be taken lightly!
People don’t like parting with their money, and some argue that accepting credit cards as a small business, eases this emotion, especially if you process high transactions. Some things are good physical; for example, the action of signing for a purchase gives people a physical sense of the security of the payment—even if it’s a digital signature. Then again, one way things are getting less physical at the point of sale is the receipt. Fewer and fewer people use them, and as a result prefer email receipts, or no receipt. Make sure your point of sale can accommodate them (and the people who still want paper!)
Now it’s tough to generalize across many different businesses and industries, but one thing that is true for most, is that it needs to be easy to get in touch with a real person, preferably with little to no wait time. Whether it’s for payments, customer service, or whatever, our digital world has sped up almost to the point where people are incapable of waiting. If your business has a presence on social media, for example, some people will use that channel to reach out to you, and expect a prompt reply. And of course, the old-fashioned phone can’t be discounted. For some, it’s the fastest way to handle their need, and it’s frustrating when their needs can’t be met though a phone solution. The best bet? Offer as many different communication routes as you can, and do them well.
If you do have a physical store, use it to the fullest advantage. The reason brick and mortar locations will never go away is that, at the end of the day, they cater to physical people with all the benefits of a physical location. One such benefit is the chance to see and touch products before buying them. A store should be organized with beautiful displays that are easily interacted with. Physical stores are meeting places. If it makes sense for your line of business, organize classes and events that draw customers in. Such events always boost sales.
As we mentioned, some processes are getting less and less physical as technology progresses. Still, it’s important not to forget the real-life person on the other end of each transaction. With a little effort, accepting credit cards for your small business can be one useful way to get closer to the customers you serve.
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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.