Medical offices, on a typical basis, bear a greater burden of credit card transaction fees compared to businesses. This situation arises from a combination of two key factors:
1. Credit cards emerge as the preferred payment method for patients lacking medical insurance and confronting unforeseen medical costs.
2. The processing fees integrated into the majority of practice management systems levy an average of 2% higher charges for transaction processing.
Until a short while ago, medical practices were compelled to adhere to the fees set by the payment provider associated with their Practice Management System (PMS) if they aimed to incorporate an integrated payment processing platform.
Nevertheless, a significant breakthrough has occurred with SignaPay Medical, which has pioneered direct integration with leading practice management systems in the field. This breakthrough empowers medical offices to harness the benefits of economical conventional processing or the cost-efficient approach of dual-price processing, leading to the substantial reduction or complete elimination of payment processing expenses.
Dual Pricing: Empowering Patient Payment Choices
Dual pricing stands as a versatile payment processing program, granting patients the autonomy to opt for either cash or credit card payments at the point of checkout. This system functions comparably to conventional card processing platforms, with the notable distinction that the card-based price slightly exceeds the cash price. The nominal additional fee attached to card transactions is then allocated towards offsetting the office's monthly card processing charges.
Though dual pricing has been prevalent at gas stations across the United States, where distinct fuel prices are displayed for cash and credit card transactions, this practice has now gained traction across diverse industries. Modern Point-of-Sale (POS) systems are increasingly equipped to accommodate dual pricing, leading numerous businesses, including medical offices, to adopt this payment paradigm. Through this transition, these offices achieve substantial annual savings by reducing or eliminating unwarranted monthly fees.
Presenting both pricing options transparently allows offices to adopt a patient-centric approach, granting patients the autonomy to determine their preferred payment method and amount based on their financial situation. By offering separate cash and credit prices, offices can transparently pass on credit card processing fees to patients who opt for credit card payments, thereby relieving the burden on cash-paying clientele. This equitable approach fosters patient goodwill, promoting fairness and trust.
Advantages for Medical Offices
1. Cost Savings: Embracing cash payments allows medical offices to bypass transaction fees imposed by their PMS's credit card processor. This proves particularly advantageous for smaller transactions, where transaction fee percentages tend to be higher, ultimately leading to significant savings.
2. Convenience for Patients: Cash payments often facilitate expense management for patients, eliminating concerns about credit card fees and interest charges. Encouraging cash payments by offering lower prices can incentivize customers to choose cash over cards.
3. Enhanced Transparency: Implementing dual pricing empowers offices to segregate cash and card transactions, simplifying accounting practices and financial planning.
Benefits for Patients
1. Reduced Prices: Opting for cash payments affords patients the opportunity to save money, especially for smaller transactions where the cumulative costs associated with card usage can accumulate over time.
2. Fee Avoidance: Some patients prefer cash payments to circumvent fees tied to credit or debit card usage. Certain medical offices impose convenience fees for card transactions or restrict specific discounts and promotions to cash payments.
Requirements & Regulations
Medical offices must ensure that their dual pricing practices comply with local laws, regulations, and guidelines set by credit card companies. Adhering to these standards ensures the transparent and lawful implementation of the pricing strategy, fostering customer trust and equity. Consider these factors:
1. Display and Communication: Display either the credit card price or both the credit card and cash price on all items or services for sale. This provides clear communication and transparency to customers, enabling informed decisions.
2. Credit Card Processor Agreement: Review your agreement with your credit card processor or payment gateway to understand any specific rules or restrictions regarding dual pricing.
3. Transparent Price Display: Clearly display both cash and credit card prices for products or services. Ensure the display is easy to understand and prominently visible at the point of sale.
4. Fee Calculation: Determine the appropriate credit card processing fee to be added to the credit card price. Consult with your processor to understand applicable fees.
5. Technology: Utilize terminals or POS systems meeting all regulatory requirements. These systems must display both payment and price options at checkout and indicate the chosen pricing on receipts.
6. Client Communication: Effectively communicate the dual pricing structure to clients, emphasizing the transparency of the process.
7. Employee Training: Train staff members on the dual pricing system for effective communication with clients.
8. Record Keeping: Maintain accurate records of cash and credit card sales to assess the impact of the dual pricing strategy.
Ready to Begin Saving?
If considering dual pricing implementation, partner with a payment processor experienced in the program's requirements. At SignaPay Medical, we excel in customer-option-based payment processing and offer PayLo Dual Processing. Our user-friendly platform streamlines implementation, potentially saving your office thousands of dollars in fees annually. With a range of robust Dual-Pricing POS equipment, BBB A+ Business Support, easy installation, and seamless processing, we enable you to provide more choices and maximize savings with every transaction. Contact us at 1.833.FEES.CUT or visit www.signapaymedical.com to learn more.