Small businesses may feel the need to “stay relevant” by keeping pace with the big box retailers, who are increasingly offering app-fueled programs that encourage return customers with all manner of incentives and promotional offers.
Thinking creatively is essential to making relevant and effective promotions. As more and more retailers offer loyalty programs, it becomes necessary to avoid “loyalty fatigue” in your target audience. Loyalty fatigue comes from consumers being asked the same or similar thing over and over again in stores. Eventually, they stop wanting to give their email.
If your small business is looking for best credit card processing company, one which can enable you to utilize a loyalty program, you have plenty of choices. These solutions do everything for you, from enabling mobile-based check-ins, generating coupons, creating birthday rewards. With all the possibilities out there, it takes some time and effort for each business to determine what, if any, loyalty program is a good fit for them. The danger? Loyalty fatigue.
The be-all, end-all question must be: is it easy for your customers to use? If not, fatigue will prevent people from taking advantage. Largely, app-based programs do hold an advantage here over old punch card methods of encouraging loyalty. App and mobile device literacy have crossed a threshold where most people will be able to navigate your loyalty system. The other main danger, though, is that many businesses are vying for your customers’ loyalty, and the effort this takes wears on your unassuming customer.
Another reason for loyalty fatigue is the type and frequency of communications that come through once loyalty has been established. An overabundance of emails being sent out is a common way to unsubscribe. You can only imagine how the stakes are raised when you consider push notifications or text messages. These invasive forms of communication should be used sparingly. If you do use them, be sure that it’s easy for the user to find and change notification settings. This way you won’t risk alienating a customer that likes your business over one too pushy notification.
As we mentioned, creative communication is the most important thing with promotions. If you’re able to add meaning to the identity of your store in other ways, you can build loyalty in a way that actually differentiates you from your competitors. One such way is by having an event calendar. Organizing or hosting local happenings that are “on-brand” for you can increase your store’s perceived value, and increase foot traffic too. Offering something that sticks in your company’s mind is the easiest way to stand out. When you look for the best credit card processing company, consider loyalty programs, but be sure to think of your customer most of all.
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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.