When many business owners are planning for expenses, they underestimate the amount they will spend on their credit card processing merchant. As a dental practice looking to streamline operations and reduce spending, how can you know if you are spending too much on credit card processing? Grab your bill and take a look at these tell-tale signs.
You Are Using PayPal or Square
Most dentists have moved past Square and PayPal, but some offer them as a way to give patients as many payment options as possible. However, if you have average transaction amounts over $10 and are processing over $2,000 a month via either service, like most dentists, you are overpaying. Both of these credit card processing merchants are transparent about their pricing, but they are popular choices for their simplicity and not their low rates.
You Have Non-Qualified Rates
Some dentists search for the right credit card processing merchant based solely on the rates and choose the least expensive option. While that might seem like a good thing, it often leads to paying more through bundled or tiered pricing. If your statements say “non-qualified” on them, there is a very high chance you’re overpaying. These merchants have confusing pricing because some transactions will cost more than others, so you might be getting very low rates for some and sky-high rates for others.
You Did Basic Research Only
SEO is the magic that helps dental offices like yours find new patients. However, it’s also a tool used by companies to take advantage of people doing only cursory research. If you found your credit card processing merchant on a generic Top 10 list or other site filled with keywords and buzzwords, there’s a good chance that the maker of the list gets compensation for referrals. Asking for direct referrals from other practices or working with an experienced company like APEX Reimbursement Specialists is a much better solution.
The Effective Rate Is Above 2.5-3.5%
The effective rate is the amount that you are paying your credit card processing merchant after factoring in non-negotiable charges and any other mark-ups that you are paying. To calculate this, add up all of the processing fees that you are assessed for transactions. Divide all of the fees by the total amount processed and multiply it by 100 to get the effective rate. A good rate for a business is between 2.5-3.5%, but it can change depending on the processor, what types of transactions you process, and the risk factor.
APEX Reimbursement Specialists Is Here to Help Your Practice Grow
Whether you’re preparing for the recredentialing process or looking to explore automating your dental practice, APEX Reimbursement Specialists is here to help. Contact our team today by calling (410) 710-6005. We look forward to working with you to make your practice a more profitable place.