Sidekick - Spring 2013 - (Page 55)
Understanding Credit Card Processing Rates
KEITH DRAYER
Vice President
Henry Schein Financial Services
Accepting credit and debit
cards has become a necessity
for dental practices. Patients
increasingly want to pay their dental bill
by credit or debit card because of the
ease, convenience, ability to better manage their finances and the opportunity
to earn points, miles and other rewards.
There are many benefits to your practice
as well, including increased cash flow,
reduced collections and improved staff
productivity.
The rates and fees often associated with
a merchant services account generally
represent only a very small percentage of
patient receivables, yet they can seem
complex and confusing. Here is a quick
primer on some of the more common
rates and fees:
Discount Rate: The basic fee that you pay
your merchant services provider for
processing each credit card transaction
and depositing the funds into your bank
account.
Transaction Fee: An additional fee
sometimes added to each transaction to
mitigate risk and cover costs.
Authorization Fee: A fee assessed by the
provider of connectivity services between
your practice and the card companies.
Rate Tiers: Credit card transactions
generally fall into one of three categories
or tiers:
• Qualified: Usually the lowest of all
rate tiers; applies to transactions
when the card is physically present.
• Mid-Qualified: An additional
percentage assessed when a credit
card payment does not meet the standards for the Qualified tier. Occurs
if the card information is manually
entered into the terminal, instead of
swiped.
• Non-Qualified: An additional
percentage assessed when a card payment does not meet the standards for
either the Qualified or Mid-Qualified
tier. Often occurs if card information is manually entered; if address
verification is not performed; or if the
transaction is not settled within the
allotted time frame.
Surcharge Fees: Assessed when accepting specific types of credit cards, such as
rewards, corporate or international cards.
Billback Fee: Assessed when one or more
of the qualifying requirements have not
been met.
Address Verification Services (AVS):
A fee assessed for verifying the address
and zip code, for card-not-present transactions.
Chargeback Fee: Applies if either the
cardholder or bank that issued the card
disputes a transaction.
Monthly Minimum Fee: Assessed if your
total card processing fees do not meet a
preset minimum amount.
Statement, Setup and Annual Fees:
A processor could assess these fees for
the corresponding services.
Termination/Cancellation Fee: Assessed
if you terminate/cancel your merchant
services account before your contract
expires.
Rates and fees fluctuate broadly from one
payment processor to another. One
surefire way to ensure your practice is
receiving the best rates and fees possible
is to work with a processor that offers a
rate guarantee, similar to Moneris Solutions’ $500 Rate Guarantee. Partnered
with Henry Schein Financial Services,
Moneris Solutions offers a $500 credit to
practices if they cannot beat or at least
meet current credit card processing rates.
About the Author:
Keith Drayer is Vice President of Henry
Schein Financial Services (HSFS). HSFS
helps health care practitioners operate
financially successful practices through
our diversified suite of financial and
business resources. HSFS’ portfolio of
resources is designed to give our customers the financial advantage critical to
success in today’s changing marketplace.
You can reach HSFS at 1-800-443-2756
or hsfs@henryschein.com.
Sidekick | Spring 2013
55
Table of Contents for the Digital Edition of Sidekick - Spring 2013
Sidekick - Spring 2013
Table of Contents
Boulder Dental Designs
Featured Designs
Are You Happy with the Quality and Quantity of Your Patient Base?
Digital X-ray— Everything I Didn’t Know I Wanted
Creating Great First Impressions with Office Design
The High Cost of Old Technology
When I See You Smile
Making the Switch to E4D for a Better Fit
Buzz Nabers Dental Studio 304
Understanding Credit Card Processing Rates
A Growing Family—Two Winning Announcements from i-CAT
Kalman Oral Surgery & Implant Center
A New Model for an Old Practice
TechCentral
Henry Schein Service
Henry Schein Financial Services
Privileges
Professional Practice Transitions
ProRepair
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