Accepting credit card payments offers significant convenience for patients. However, the associated transaction fees can quickly erode the profit margins of medical practices. Lowering credit card processing rates through negotiation can help mitigate the impact of these costs on your practice’s financial performance. This enables you to maintain flexible patient payment options without facing adverse financial consequences.
Tips to lower credit card fees
When seeking to negotiate better credit card processing rates for your medical practice, consider the following tips:
- Compare rates from multiple providers: Obtain quotes from several processors to take advantage of competition and secure lower rates. Be cautious of extremely low offers, as they may indicate subpar service or hidden fees.
- Understand different pricing models:Familiarize yourself with pricing models such as flat rates per transaction, tiered rates based on monthly volume, and interchange plus pass-through models. Evaluate which model offers the most cost savings based on your practice’s typical monthly transaction numbers and ticket sizes.
- Inquire about additional discounts: If your practice is larger or processes a significant dollar volume monthly, you may qualify for additional rate deductions. Additionally, ask about special medical industry discounts that may be available. These are questions you should ask when you select a credit card processing vendor or when your contract with a current vendor ends.
- Consider long-term contracts: If your practice consistently maintains a predictable volume of transactions on a monthly basis, entering into longer-term contracts (3+ years) can secure the lowest rates in exchange for your commitment.
- Seek customized medical plan features: Look for credit card processors that cater specifically to the medical industry. These processors may offer features such as automated patient statements and specialized virtual terminal interfaces for appointment payments. Such features can warrant discounted pricing. Finding a vendor that has experience with doctors also helps ensure HIPPA compliance.
- Review statements diligently: Scrutinize your statements for any rate increases upon contract renewal or any erroneous charges. Disputed fees can often be refunded. Report any issues immediately to prevent overpaying.
By conducting thorough research and engaging in active negotiation, medical practices can effectively lower their credit card processing expenses. The resulting savings can then be allocated toward enhancing patient care and facilitating practice growth. In addition to benefiting medical practices, these efforts also provide patients with the flexibility they appreciate when it comes to payment options.
