Hidden Payment Processing Fees Could Be Costing Your Practice $30,000–$50,000 Every Year
We have recently uncovered several dental practices paying $30,000–$50,000 more than necessary each year in payment processing fees.
In one case, the practice's effective payment processing rate was approximately 8% — about four times a competitive market rate.
The practice owner had no idea.
Why This Often Goes Unnoticed
Most dental practices are assignment practices, where only patient co-payments and uninsured treatment are processed through the payment processor. That means the benchmark is different.
Non-assignment practices: Nearly all collections are processed through the payment processor, so a competitive effective rate is typically around 2% of total collections.
Assignment practices: If only 30% of collections are processed by credit card, a competitive 2% processing rate equates to approximately 0.6% of total practice collections (2% × 30%).
Because payment processing fees are often viewed only as a percentage of total revenue, many practice owners never calculate the actual rate being charged on the payments that are processed. That is why excessive fees can go unnoticed for years.
Why Does This Happen?
We've seen the same pattern repeatedly:
Attractive introductory pricing increases over time.
Payment processors regularly adjust their fees, providing notice only through the monthly statement.
Fee structures become increasingly complex.
Statements are rarely reviewed closely.
No one calculates the true effective payment processing rate.
As a result, small fee increases can accumulate for years without being noticed.
What Every Practice Owner Should Do
At least once a year: review your payment processing statements, calculate your effective payment processing rate, understand all fees — not just the advertised rate, ask your provider for a pricing review, and compare your costs with current market rates.
Small changes can significantly impact profitability. Reviewing your payment processing fees takes very little time, but it could save your practice tens of thousands of dollars every year.