Over the past several years in America, EMV chip cards have replaced older, mag-stripe only cards. Customers now have the option of inserting their chip card, rather than sliding it, for transactions. The result: A safer, more secure transaction. However, many businesses have been slow to accommodate this. If you’ve missed the boat, Moolah, as well as the Poynt Smart Terminal can get you updated. But first: Is it necessary to have an EMV chip card reader?
The EMV chip card is a card that allows you to insert a chip, rather than swiping the card, verifying that the card is authentic, thereby providing more secure transactions. EMV technology has been prominent in other countries, including Canada, as well as many European countries, much longer than it has here, and recently it has become the only card option for cards from American banks. EMV cards safeguard security, and can contain much more information than magnetic stripes, making them much harder to fake. While magnetic stripes on cards can be fairly easily cloned, EMV cards prevent cloning. EMV cards are also much harder to steal information from with a card skimmer. Thus, EMV cards are much safer to use. Because of this, major card companies started distributing EMV cards in the U.S., and now they are the norm.
After card companies began issuing chip cards in America, businesses were slow to adapt. Then the laws changed. Essentially, liability for fraudulent transactions that EMV chip cards could prevent, shifted onto businesses, if they were not operating in an EMV-compliant manner. Some businesses, like gas stations, had longer to adopt this new system, due to the cost of the change. At this point, all businesses in the U.S. face an increased risk of liability for fraudulent card transactions if they don’t accept EMV, and the majority have updated their equipment. Some payment processing companies even began charging EMV non-compliance fees for businesses that don’t upgrade to EMV card readers. In short, in order to protect customers, as well as yourself, EMV is the obvious choice.
It is important to be able to accept EMV chip cards. Doing so will help you safeguard customers’ data, showing your customers that you care about keeping them safe, while protecting you from liability for credit card fraud that could take place because you didn’t switch over to an EMV reader. The cost of upgrading to a card terminal that reads EMV chip cards is also not as much as you would think. You’d actually have a hard time finding a terminal that doesn’t have EMV chip ability, and some, like Moolah, even provide options for free. We at Moolah are happy to provide the Poynt Smart Terminal to all our customers because we understand the importance of accepting a variety of payments, especially EMV chip cards. The Poynt Smart Terminal is a card terminal that accepts all major card payments, including EMV chip cards, as well as NFC touchless payments such as Apple Pay and Google Pay, and provides a variety of options to businesses to streamline the payment process. We believe you will be satisfied with the Poynt Smart Terminal, and think that is just one of many reasons why you should consider Moolah for your payment processing needs.
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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.