The Hidden Merchant Fee: A Costly Oversight for Dentists
A recent Preliminary Practice Assessment uncovered a costly oversight that had quietly been impacting a dental practice for years. During our assessment and cash flow analysis, we discovered the practice owner was being charged a staggering 8% in merchant fees.
The surprising part? This was a non-assignment practice, meaning every patient payment processed through the account was subject to that fee. Industry standard merchant rates are typically closer to 2–3%.
Why this keeps happening
Unfortunately, this is something we have seen more than once. Many practices sign up with an attractive introductory offer, but over time rates quietly increase, statement notices get overlooked, fee structures become more complex, and no one revisits the agreement.
The result can be hundreds of thousands of dollars lost over the long term — without anyone realizing it.
What every owner should be doing
This is why we strongly encourage dentists and practice owners to review merchant statements regularly, understand the true effective rate being charged, request a rate review from their current provider, and compare options with alternative providers.
These are simple actions — but they rarely happen without an outside set of eyes prompting them.
Profitability is often about stopping losses
Sometimes the biggest opportunities for increased profitability are not about producing more — they are about stopping unnecessary losses. A second look can make a massive difference.
If it has been more than a year since anyone audited your merchant statements, that is the first place we would look.