Retaining Practice Revunue With Surcharging

As credit card usage continues to increase, many dental practices are taking a closer look at the cost of accepting card payments. Credit card processing fees can represent a recurring operational expense that impacts a practice's bottom line year after year.

One strategy some practices explore is credit card surcharging, which allows eligible businesses to apply a fee to certain credit card transactions to help offset processing costs. Rather than absorbing the full expense of card acceptance, a portion of the cost is passed on to patients who choose to pay with a credit card.

Surcharging is not the same as charging a convenience fee or adding a fee to all payment types. In most cases, surcharge programs apply only to eligible credit card transactions and do not apply to debit card payments, even when a debit card is processed as credit.

How Surcharging Works

When a patient pays with a credit card, a surcharge may be added to the transaction amount. The fee is designed to help offset some or all of the processing expense incurred by the practice.

For example, if a practice has significant annual credit card volume, processing fees can add up to thousands of dollars per year. A surcharge program can help reduce the amount the practice pays out-of-pocket for accepting credit cards.

Compliance Considerations

Credit card surcharging is subject to card brand rules and state-specific regulations. Dental practices considering a surcharge program should ensure they understand applicable requirements, which may include:

• Patient disclosures
• Required signage
• Receipt requirements
• Staff training
• Card brand notification requirements
• State law compliance

Because regulations can vary by location, proper implementation is essential to maintaining compliance and avoiding patient confusion.

Is Surcharging Right for Your Practice?

The decision to implement a surcharge program depends on several factors, including:

• Annual credit card processing volume
• Current processing expenses
• Patient payment preferences
• State regulations
• Practice financial goals

For some dental practices, surcharging can be an effective way to reduce payment acceptance costs while continuing to offer the convenience of credit card payments. For others, absorbing processing fees may remain the preferred approach.

Credit card surcharging has become an increasingly common topic as businesses look for ways to manage rising operating expenses. For dental practices, understanding how surcharge programs work, the compliance requirements involved, and the potential financial impact can help determine whether this approach aligns with the practice's overall payment strategy.

To learn more about how Merchant Compliant Surcharging can help your practice retain more revenue, email Connect@FineTechInc.com or call 678.310.2928