The true cost of credit card processing for dental practices

Your dental practice may have collected thousands of dollars in patient payments this year, but how much of that revenue went toward credit card processing fees? Accepting credit cards makes it easier for patients to pay for treatment, but that convenience comes at a cost. 

Processing fees can quietly become a significant operating expense, especially for practices that handle a high volume of patient payments.

Consider this: If your practice processes $500,000 in card payments annually and pays an illustrative 3% processing fee, that's $15,000 in fees over the course of a year. That's money that could otherwise contribute to payroll, equipment, technology, or other practice expenses.

A few percentage points might not seem like much when applied to an individual transaction. But across hundreds or thousands of payments, those fees add up.

Did your practice budget for these costs this year? More importantly, have you considered ways to better manage them? 

Key takeaways: Dental credit card processing costs:

• Credit card processing fees can add up to thousands of dollars annually, making it important for dental practices to understand their effective processing rate and total costs.

• Reviewing processing statements, comparing pricing structures, and evaluating payment technology can help practices identify opportunities to manage expenses.

• QuantaPay's QSave add-on offers a way for dental practices to offset eligible credit card processing costs through surcharging, along with a separate debit processing rate. 

How much are credit card processing fees really costing your practice?

Every time a patient pays with a credit card, your practice typically pays a fee to process that transaction. These fees compensate payment processors, card networks, and other parties involved in securely moving money from the patient's account to your practice.

The amount your practice pays depends on several factors, including the type of card used, whether the transaction occurs in person or online, your processor's pricing structure, and any additional transaction or service fees. While individual fees might seem insignificant, their cumulative impact can be substantial.

Consider how a 3% processing fee would affect practices with different annual card payment volumes:

These figures are examples, not guaranteed processing rates or estimates of potential savings. Your actual costs will depend on your processing agreement, transaction mix, and other applicable fees.

Still, the numbers illustrate why payment processing deserves a place in your practice's financial planning. When processing fees increase, they can put additional pressure on operating expenses and reduce the revenue available for other priorities.

Why dental practices often overlook payment processing costs

If processing fees can have such a significant impact on a practice's finances, why don't more dental teams review them regularly? There are several reasons these expenses can fly under the radar.

Processing fees aren't always presented as a straightforward expense for each patient payment. Depending on your payment setup, fees may be deducted from settlements or itemized across processing statements. Because the deductions happen in the background, it can be difficult to recognize just how much the practice is paying over time.

A fee of a few dollars on a single transaction might not raise any concerns. But multiply that amount across a full schedule of patient payments, and the annual total can look very different. Without reviewing the numbers, it's easy to underestimate the cumulative cost.

Payment processing also needs to work reliably without creating additional administrative work.  As a result, practices may prioritize convenience and consistency over reviewing the costs associated with their current setup.

What can your practice do to manage credit card processing costs? 

You don't have to accept your current processing costs without understanding them. A few practical steps can help you identify opportunities to manage these expenses.  

1. Review your processing statements. Review your total processing fees and calculate your effective processing rate. Look beyond the headline transaction rate to understand what you're actually paying.

2. Compare pricing structures. Evaluate transaction rates, monthly fees, and other applicable charges. A low advertised rate doesn't necessarily translate into the lowest overall cost.

3. Evaluate your payment technology. Look for dental patient payment software that fits your existing checkout and collection workflows. The right solution should help your team collect payments efficiently without adding unnecessary steps.

4. Understand your options for surcharging. Depending on applicable laws, card-network requirements, and your payment provider's program, surcharging eligible credit card transactions may help offset processing costs. Requirements vary by jurisdiction and card network, and debit card transactions cannot simply be treated like credit card transactions for surcharge purposes.

5. Prioritize a clear patient experience. Cost savings matter, but so does the way patients pay. Any approach to managing processing fees should include clear disclosures, transparent checkout pricing, and a straightforward payment experience.

Read more: Are you overpaying? Dental credit card processing fees explained

The goal isn't simply to find the lowest advertised rate. It's to understand your costs and choose a payment processing arrangement that supports your practice's financial goals and day-to-day operations.

Meet QSave: A smarter way to manage dental payment processing costs

For dental practices looking to better manage processing expenses, QuantaPay offers QSave, an add-on designed to help offset eligible credit card processing costs and provide a separate debit processing rate. 

QSave combines eligible credit card surcharging with a separate debit processing rate, helping practices manage payment costs while maintaining a transparent checkout experience. With QSave, eligible credit card transactions can be surcharged according to applicable rules and program requirements. This can help your practice offset credit card processing costs rather than absorbing the full expense on every eligible transaction.

Read more: QSave 101: How dental credit card surcharging works from checkout to deposit 

Surcharging isn't permitted in every situation, and requirements can vary by state and card network. Practices should follow applicable state laws and card-network requirements, including transaction eligibility, advance notice where required, and patient disclosures. The objective is to help manage processing expenses while maintaining a transparent payment experience. 

Credit cards and debit cards don't follow the same surcharging rules. Debit transactions, including payments made with FSA and HSA cards, are not eligible for credit card surcharges and must be handled according to applicable program requirements. 

QSave offers a 2.19% debit processing rate paid by the practice, helping dental teams better understand the costs associated with these transactions. This distinction matters because a payment solution needs to account for the different ways patients pay, not just credit card transactions.

Want to see how the numbers might look for your practice? Try QuantaPay's Payment Processing Calculator to compare processing options based on your payment volume and card mix. 

Don't let processing fees go unexamined

To recap, we covered: 

• How much are credit card processing fees really costing your practice?

• Why dental practices often overlook payment processing costs

• What can your practice do to reduce credit card processing fees?

• Meet QSave: A smarter way to manage dental payment processing costs

A 3% processing fee might seem manageable when you look at one transaction at a time. But over a year, it can add up to thousands of dollars that your practice could put toward other priorities.

The first step is understanding what you're paying. Review your processing statements, calculate your effective rate, and evaluate whether your current payment processing arrangement still makes sense for your practice. Then, consider whether a different approach could help you manage those costs.

QuantaPay's QSave add-on is one option for dental practices looking to offset eligible credit card processing costs, access a separate debit processing rate, and maintain a straightforward patient checkout experience. 

Want to see how your practice could manage payment processing costs differently? Explore QuantaPay's QSave add-on and find out how it could fit into your patient payment workflow. Book a discovery call with our team today.