1. Transaction Fee Structure
When you process payments, transaction fees vary depending on the type of card and how the payment is made. Here’s a quick breakdown:
Card Not Present / Online Payments | All Debit/Credit cards except AMEX | 2.90% + $0.30 per transaction |
Card Present / POS Payments | All Debit cards only except AMEX | 1.50% + $0.25 per transaction |
All Credit cards only except AMEX | 2.69% + $0.30 per transaction | |
AMEX for Online and POS Payments | Debit/Credit Cards | 3.40% + $0.30 per transaction |
To avoid overcharging your patients, you can apply a maximum surcharge of 2.69%. This ensures the lowest percentage rate is used. Any remaining fees above this rate are your responsibility as the practice.
2. What is a Surcharge?
A surcharge is an extra fee you can add when a patient pays with a credit card. This fee helps cover the costs associated with processing the credit card payment.
3. How Surcharges Work: Patient vs. Practice Costs
Example:
If a patient makes a $100 payment online using a Visa credit card:
- Patient's Cost: You can charge a maximum surcharge of 2.69%. If you do, the patient would pay an extra $2.69, making their total payment $102.69.
- Practice's Cost: The total transaction fee would be 2.90% of $102.69 + $0.30, which equals $3.28. Since the patient only covered $2.69, your practice would need to pay the remaining $0.59.
So, after fees, the net amount your practice would receive is $99.41.
Use this calculator to determine the fees associated with a pending charge.
Debit Cards
Surcharges are not allowed on debit card transactions. The patient will only pay the purchase amount; your practice will cover the full transaction fee.
- Example: For a $100 debit card payment, the transaction fee is 2.90% + $0.30, so your practice would cover $3.20. You would receive a net amount of $96.80.
If the transaction is made via Card Present/POS, the transaction fee is 1.50% + $0.25; the practice would be responsible for paying $1.50 + $0.25 = $1.75.
- Example: For a $100 debit card payment that is Card Present/POS the practice covers a $1.75 transaction fee and receives a net amount of $98.25.
4. Situations Where Surcharging is Not Allowed
There are certain cases where you cannot apply a surcharge:
- Debit Cards: No surcharges are permitted; the practice absorbs all processing fees.
- Specific U.S. States: Some states prohibit surcharges on credit card transactions.
Massachusetts
- Puerto Rico
- Oklahoma
- Colorado caps surcharges at 2%
- Canadian Provinces: Quebec bans surcharges entirely. Other provinces allow them but limit the surcharge to 2.4% of the transaction amount.
5. Processing Times
All transactions, whether processed via e-commerce or point-of-sale (POS), will be settled within one business day (T+1), ensuring swift and efficient handling of payments.
For information on Stripe Fees, click here.
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