Are you looking for the fastest way to start accepting credit cards? Business decisions move faster and faster these days, but before you make a decision that you’ll have to live with for time to come, let’s slow down and look at the options for the best credit card processing for small business.
A good way to parse your available options is to get into the difference between a payment aggregator, and a dedicated merchant account. As your mother probably always said, slow and steady wins the race. But as a business owner, you don’t want slow, especially when it comes to payments. This is exactly why we need to look at what is slow, and what is fast, about these two options.
Aggregators are called that because during payment processing, they lump businesses together, rather than processing payments on an individual basis. Some well-known aggregators are PayPal, Square, and Stripe. At the first glance, you may be encouraged by the up-front simplicity of the aggregator model. They don’t require merchants to sign up for a merchant account, which can make the process go faster. You most likely don’t have to worry about approval with an aggregator, and as a result, application and setup is typically pretty fast and easy when compared to the slightly longer sign up process merchant accounts have.
What’s slower about aggregators is, well, everything else. The name of the game when you process payments is risk. As aggregators have an increased risk, they hedge this unavoidable consequence by charging higher fees. Merchant accounts hedge that same risk by taking a closer look during the application process. In other words, if you’re an established business, taking the time to set up a merchant account just makes good sense.
The last thing you want to do with your payment processor is allow wait times to derail your cash flow. When dealing with an aggregator, this is an issue, though. Depending on the service you can wait anything from a few days to a week or more after the purchase before the money is safe in your checking account and spendable. When unexpected expenses crop up, you want to be able to get at the money you have, and as a rule, merchant accounts, like Moolah, better allow that.
In a sense, when it comes to risk management: merchant accounts are proactive, and aggregators are reactive. So rather than asking, “What will get me on my feet fastest?” when deciding on the best credit card processing for small business, it may be better to think of the question as a decision between quick setup, but with the potential for interruptions down the road, and a more involved setup process that enables you to avoid unexpected holds. Moolah takes the question seriously, and offers the stability and convenience of a merchant account, along with all the long-term benefits that come with it.
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.