As payment costs continue to rise, many dental practices are exploring surcharging to offset credit card processing fees. Surcharging is the practice of adding a fee, typically up to 3%, when a patient pays with a credit card to cover the cost of processing that transaction. Debit cards, HSA and FSA cards, and some insurance payments cannot be surcharged. When a credit card is used, the system identifies it and adds the applicable surcharge. The practice keeps the full original transaction amount, and the additional fee covers the processing expense.

Surcharging is regulated and requires careful compliance. Practices must post clear notices at the office, at payment locations, on their website, and on billing materials. They must register with card brands before starting. Surcharges must be applied to all credit card types equally. Practices must ensure the surcharge matches actual processing costs, and clearly show the surcharge on receipts.

Surcharging may benefit your practice by reducing or eliminating credit card processing expenses and encouraging lower-cost debit payments. But it may negatively impact the patient experience, and you must remain aware of changing regulations.

Before implementing surcharging, it’s important to weigh financial savings against patient perception and compliance requirements. Consulting with MDA-endorsed Best Card can help determine whether surcharging or traditional cost-plus pricing is the better fit for your practice. To contact Best Card call 877-739-3952, or visit bestcardteam.com/mi.