It can feel like a jungle out there for the person who is looking for the best credit card processing to match their small businesses. There is a range of considerations to make, and not every solution will work for everyone. Still, there are some generally accepted truths for what to avoid to make sure that you don’t pay more than you should.
Signing a 3-year contract is scary for anything, but when it’s your business—your livelihood—that is being affected, it adds an extra layer of apprehension. It’s hard to know where your business will be three years from now, and the right solution today may not be the right solution down the line. Worse, most companies build early termination fees into their profit structure. That’s an unnecessary burden to have to bear. That’s why Moolah charges you on a monthly basis, with no additional monthly fees and no termination fees. We wouldn’t feel right doing it any other way.
This is a general one, but it’s simply the weapon of choice for a processing company trying to walk away with more of your money. In a nut shell, lack of transparency exists when a quoted rate and the actual rate isn’t the same, and it isn’t immediately clear why. Monthly statements can be overly confusing, or too lacking in details, to be able to parse, and therefore the business owner is content to accept the rate.
The easiest way to ensure that you’re not getting fleeced is to enter into an agreement that is transparent. Moolah has one fee: 2.69% + $0.29. And if you’ve ever got a question about your statement, our 24/7 customer support is there to help you. It should be that simple.
One of the most common ways processing companies remove transparency for their service is by adopting a tiered rate plan. Businesses are lured to the table with rates like “1.69% for qualified transactions”. What may not be immediately apparent are the two other tiers, which are there to the processor’s profits. Rates like “2.69% for mid-qualified” transactions, and “3.69% for non-qualified” transactions may be stated, but it can be hard to gauge how big of an impact that will actually have for the business. Once in the plan, it becomes incredibly difficult to find out just where the majority of your fees are falling on the tiered system, which is what the processor wants. If you see this terminology in an agreement, it’s a good idea to start looking elsewhere.
There are a number of reasons businesses opt to go with their local brick-and-mortar bank for their credit card processing. There may be a certain loyalty that businesses feel toward the bank—it may be the bank that offered you your first checking account. But before getting too emotional, it’s important to see that that loyalty isn’t necessary for credit card processing because most community banks don’t even process their own credit card payments. A lot of the time, small banks resell their credit card processing to some third party like Tsys, Vantiv, or First Data. The local bank is just an intermediary. This usually means you’re paying fees on top of fees. Many banks also use the tiered pricing model described above, which can end up costing you more.
In the end, deciding on credit card processing for your small business is just like most business decisions. At the end of the day, you have to know what you’re getting. This means doing the research to make sure that you arrive at a solution that matches your needs, and doesn’t require additional fees. By offering a pay-as-you-go service with a fixed fee structure, and by valuing transparency and great customer service, at Moolah we aim to be exactly the solution that small businesses are looking for.
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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.