Credit card processing fees have long been an unavoidable expense for your practice. Most dental clinics pay between 2%-2.9% for credit card processing which cuts into profit margins and make up a big part of the price of your services.
After Canadian legislation changes in 2022, clinics are considering a new payment model, the pass-the-fee model, sometimes referred to as surcharging. In this post we will navigate how it works and walk through all of the considerations for your practice.
How Pass The Fee Works
The primary objective of a Pass The Fee model is to incentivize clients to pay with a lower cost payment method like debit card or cash instead of a credit card. The technology automatically applies a surcharge of 2.4% when patients pay with a credit card. If they pay with debit or cash, no surcharge is applied to the transaction. This approach keeps service prices stable while ensuring the clinic isn’t silently covering transaction costs.
Pass The Fee has quickly become the fastest growing payment model for clinics in Canada because of the simplicity to implement and the cost savings it generates. Across Rescue’s dental portfolio, clinics realize a 98.5% reduction in their credit card acceptance costs annually.
The Patient Experience
Rescue provides you with clear signage and point-of-sale signage that explains how Pass The Fee works. This helps the patient understand their payment options and make a choice on how they would like to pay.
If a patient pays with a debit card, then no additional fee is applied to the transaction. If they choose to use a credit card, then the Rescue Smart Terminal automatically adds the 2.4% surcharge to cover the costs of the transactions. There is no manual calculation required for the clinic staff.
How Does This Work with Our Patient Management System?
Rescue Payments simplifies payment processing at dental clinics by integrating smoothly with popular patient management systems (PMS) such as Dentrix, AbelDent, Tracker, ClearDent, and Curve Dental.
Here’s how effortless the process is:
- Easy Entry: Clinic staff continue to create and manage patient invoices as usual within their PMS.
- Seamless Payment: When patients are ready to pay, staff simply enter the payment amount into the Rescue Payments terminal.
- Automatic Surcharging: If the patient chooses to pay with a credit card, the Rescue Payments terminal automatically calculates and applies the compliant surcharge (up to 2.4%).
- Simple Reconciliation: At the end of the day, staff easily reconcile payments by printing a comprehensive summary report directly from the Rescue terminal, ensuring quick and accurate reconciliation with their PMS records.
This integration reduces manual effort, minimizes errors, and ensures complete regulatory compliance – making payment processing simpler and more efficient for your clinic.
Legal & Technical Considerations
Implementing a surcharge program at your dental clinic can significantly reduce payment processing costs, benefiting your practice’s financial health. Rescue Payments simplifies this transition by automatically handling compliance for all regulatory requirements:
- Surcharge Limit: Our technology automatically ensures surcharges never exceed Canada’s regulated maximum of 2.4%.
- Transparency: Rescue Payments provides compliant, automated signage at points-of-sale and ensures surcharge amounts are clearly itemized on patient receipts.
- Payment Methods: Our system automatically applies surcharges only to credit card transactions, ensuring debit and prepaid card payments remain surcharge-free.
- Compliance Monitoring: Rescue Payments proactively manages surcharge compliance, continuously updating to reflect current provincial and federal consumer protection regulations.
- Staff Training: We offer comprehensive resources and support, helping your team easily understand and communicate surcharge policies to your patients.
By partnering with Rescue Payments, your dental clinic can confidently implement surcharging, reducing costs effortlessly while maintaining complete compliance.
How This Differs From Traditional Payment Processing?
Many practices rely on an interchange-plus model, where fees are based on the credit card type and transaction type. While this method can offer transparency, the actual costs can fluctuate often. Flat-rate pricing, the grandfather of payment processing, simplifies things but often results in higher overall fees. Traditional processing continues to be a widely used and reliable option, but as costs continue to rise, clinic owners may consider evaluating whether they’re in the hands of a fair partner (i.e. their processor).
I’m interested in evaluating a Pass The Fee program. What do I do?
Discover exactly how much your dental clinic can save by implementing a surcharge program. Rescue Payments offers a complimentary review to help you evaluate your potential savings. Our team will conduct a personalized analysis of your current payment processing costs, clearly demonstrating the financial benefits your clinic could realize. Get the insights you need to make an informed decision – contact Rescue Payments today to request your complimentary analysis and start optimizing your payment processing.
