We know that cash transactions are no longer the primary form of payment, but how far do people’s payment preferences change across demographics? While you may realize that electronic forms of payment are becoming more common, you may not realize that payment preferences vary a great deal depending on age. Having a point of sale that is equipped to handle them all, such as the Poynt POS, is crucial. Here are some breakdowns of the preferred payment method by age group.
As you might expect, the youngest individuals, those in Generation Z, tend to prefer electronic forms of payment. They may use peer-to-peer payments, NFC payments, or other forms of electronic payment. In order to appeal to these customers, you will need to have options that allow electronic payment. That might mean investing in a point of sale system that allows for NFC payments, and providing other electronic options as they arise.
Millennials seem to have a wider range of payment methods than other groups. While they certainly utilize electronic payment options, such as NFC payments, as well as credit and debit cards, they also use cash for their payments. In fact, cash use is surprisingly high in this group, although this is typically for smaller purchases. In order to appeal to this group, you will need to have a variety of payment options.
Middle-aged adults tend to prefer credit and debit cards. They grew up in a time when credit cards experienced unprecedented growth, and became so commonplace that almost everyone had one. In order to appeal to this group, you need to provide credit and debit card options. While it may benefit you to have EMV options in order to reduce the risk of liability, you may want to provide the option of swiping to those who prefer this method of payment as well.
Older-aged adults use a variety of payment methods. However, they have a higher preference of American Express cards, as well as checks. In order to appeal to this group, you need to be able to accept American Express, which is not something that everyone does. As checks are one of the most rapidly declining forms of payment, and carry risks the other payment types don’t, think twice about accepting these. AHC payments can be a good alternative to paper checks.
What Payment Preferences Might Say About Your Business
If your business wants to get ahead, you’ll want to appeal to all these customers. These differences in payment preferences show that it really does pay to accept a wide variety of payments. That could include providing online sale options for people. But it also means having a card terminal that can accommodate people’s preferences. It is important to consider having a terminal that can accept all major credit and debit cards, as well as NFC payments, in order to appeal to all customers. The Poynt POS provides a variety of payment options, including credit, debit, and NFC payments. It is a terminal that streamlines payments, and can accommodate any customer. Moolah offers the Poynt POS to all account holders, free of charge, because we know the importance of having a terminal that can roll with the changing times. That is just one of many reasons why Moolah can’t be beaten when it comes to payment processing.
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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.