For many clients, costly or even modestly priced medical procedures prove prohibitively expensive. Often patients delay critical dental or medical work for either inability to pay upfront or apprehension about what their financial responsibilities will be. So how can you get more patients in the door and on to healthier lives, all while boosting your practice? As with selling cars or sofas, some health care and dental providers offer installment options to stay competitive and reach more clients. Installment plans enable and incentivize patients to seek treatment who might otherwise delay or forego care.
Is offering your patients payment plans the right option for you? Well, that depends on many factors including your client demographic as well as the level of risk aversion of your practice. Offering a payment plan will incur some losses if clients default on payments.
Additionally, you face administrative costs associated with tracking and following up on scheduled payments. Utilizing a healthcare payment solution with easy payment processing like Moolah, along with QuickBooks integration will reduce administrative expenses. Still, some minimal cost always remains. Also to consider, payment plans without any surcharge built-in can cost your practice, as you are essentially loaning the client money at zero percent interest.
As for collecting payments, whether or not the patient ultimately pays is largely beyond your control. If you do opt to offer payment plans, some simple strategies can help mitigate risk and avoid future headaches. It all focuses on better communication with your client.
Any installment plan ought to include a concrete payment policy. The policy should clearly outline payment details. Include when and in what manner clients must submit payments. Additionally, the policy ought to specify late penalties, if any. Your clients will be more inclined to pay if you communicate clear expectations.
Enabling automatic payments offers one of the simplest solutions for both you and the client. Automated payments are not subject to the client’s forgetfulness and it reduces staff time required to process payments. Moolah makes it easy to not only process automatic digital payments but also includes connectivity with useful apps such as invoicing solutions and CRMs, making managing patient relationships easier. It’s all part of offering the best healthcare payment solution to your client.
Your practice relies not only on the high level of care you provide but also on the relationships you develop with your patients. Offering installment plans can communicate trust and empathy toward your client. Cultivating mutual respect incentivizes your patient to seek out your care and pay for services.
Whether or not installment plans are right for your business depends on many factors. If you are willing to incur a bit of risk, and depending on your local circumstances, offering installment plans can be a beneficial tool to bolster your practice, and help more people.
Thank you for scheduling. If you have any questions, please contact us at 800-625-1670.
A credit card surcharge is an additional fee added to a transaction when a patient chooses to pay with a credit card. The surcharge is intended to help offset the cost of credit card processing and applies only to eligible credit card transactions.
No. Debit card transactions may not be surcharged under any circumstances, even if the debit card is processed as a credit transaction or entered manually.
Yes. Credit card surcharges may not exceed the merchant’s actual cost of accepting credit cards and are capped at a maximum of 3% of the total transaction amount, in accordance with card-network rules and applicable law.
Yes. Card networks require clear and transparent disclosure of any credit card surcharge. Practices must notify patients through appropriate signage at the practice entrance, point of sale, and anywhere payments are accepted. If payments are accepted online, the surcharge must also be clearly disclosed on the practice’s website.
Yes. Some U.S. states and territories prohibit or restrict credit card surcharging. Practices are responsible for understanding and complying with their state’s specific requirements before implementing a surcharge.
No. While Moolah provides tools and general guidance to support credit card surcharging, compliance with all applicable laws and card-network rules is the responsibility of the merchant. Moolah does not provide legal advice and assumes no liability for a merchant’s compliance.
Most major credit card networks permit surcharging when done in accordance with their rules, but additional requirements or restrictions may apply. Practices should ensure they have completed all required network notifications and disclosures prior to enabling surcharging.
Failure to comply with surcharging rules may result in card-network fines, required refunds, or other enforcement actions. Practices should ensure they fully understand all applicable requirements before applying a surcharge.
Flex does not currently offer built-in support for credit card surcharging. If a practice chooses to enroll in a surcharge plan, payments would need to be processed through Moolah’s payment platform, which is designed to support surcharging and integrates directly with Open Dental.
If you are considering introducing a credit card surcharge for your patients, it is important to understand that there are specific rules and regulations that must be followed when enrolling in and operating under a surcharge plan.
This article provides a general overview of common surcharging requirements. This content is provided for informational purposes only and does not constitute legal advice. It is the responsibility of each merchant to review, understand, and comply with all applicable laws, card-network rules, and regulatory requirements, including notification timeframes, signage requirements, surcharge percentage limits, and jurisdictions where surcharging is prohibited.
If you are unsure about the laws or regulations applicable to your practice, you should consult with qualified legal counsel. Moolah assumes no liability for a merchant’s compliance or non-compliance with credit card surcharging rules or regulations.
Transparent Communication
Card networks, including Visa, Mastercard, Discover, and American Express, require merchants to clearly and transparently disclose when a credit card surcharge is applied.
Practices must clearly notify patients of a credit card surcharge through appropriate signage placed at the practice entrance, at the point of sale or terminal, and anywhere payments are accepted. If payments are accepted online, surcharge disclosures must also be clearly visible on the practice’s website. All disclosures must inform patients that the surcharge applies only to credit card transactions.
Surcharge Limits
Credit card surcharges must comply with both card-network rules and applicable law. The surcharge amount may not exceed the merchant’s actual cost of accepting credit cards and may not exceed 3% of the total transaction amount.
Card-network rules cap credit card surcharges at 3%, meaning that if a merchant’s processing costs exceed this amount, the excess portion cannot be passed on to the patient.
Network and State Restrictions
The major credit card networks, such as Visa and Mastercard, impose specific requirements related to surcharge limits, advance notification, and disclosure.
In addition, several U.S. states and territories regulate or prohibit credit card surcharging. At the time of writing, credit card surcharging is prohibited in Connecticut, Maine, Massachusetts, and Puerto Rico. Other states, including Colorado, Minnesota, Mississippi, New Jersey, and New York, impose restrictions on surcharge amounts or require specific disclosures.
If your practice operates in a state that restricts or prohibits credit card surcharging, you must fully understand and comply with those requirements before implementing a surcharge.
Debit card transactions may never be surcharged, even if the debit card is processed as a credit transaction.
Applicability
Credit card surcharges may be applied only to credit card transactions. Other payment types, including debit cards and alternative payment methods, are not eligible for surcharging.
Regulatory Compliance
Merchants are responsible for maintaining ongoing compliance with all applicable card-network and legal requirements. This includes meeting advance notification obligations, using compliant signage and disclosures, adhering to surcharge percentage limits, and respecting jurisdiction-specific restrictions.
By following these guidelines, dental practices can implement credit card surcharging in a way that aligns with card-network rules and promotes transparency with patients. Clear and upfront communication helps maintain patient trust and supports a positive payment experience.