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Merchant billing

  • 1.  Merchant billing

    Posted 03-26-2018 09:18

    Hello,

    I am thinking that I don't want the complications of an insurance based practice. So thinking of starting with cash only practice. 

    It seems the credit card merchant processing charges take a bite out of your income.

    Some charge a monthly fee, and/or a % of revenue and cc processing fees, which is 2.2-2.8%.

    Just wondering of any of your experiences and if there is less expensive way to handle this?

    Thanks.




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    Valsa
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  • 2.  RE: Merchant billing

    Posted 03-26-2018 10:14
    Google is your friend.  CC processor arrangements keep evolving.   Also consider Square, PayPal, etc.
    2% is cheap compared to check processing (typically $0.10-$0.50/ck after 10/mo) and bad check charges($25-$35 to BOTH you and check writer.)

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    Peter Liepmann MD FAAFP MBA
    My mission is to fix US health care
    Glendale CA
    8456331388
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  • 3.  RE: Merchant billing

    Posted 04-01-2018 08:09
    Thank you all for your thoughtful comments.

    What i am gathering is that the minimum CC processing fees will be ~1% of billed amount with a card present and ~2% without. And perhaps an additional amount per transaction amount.

    Paypal is an option but may not be confidential enough, and may not be secure.

    CC are better than checks.


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    Valsa
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  • 4.  RE: Merchant billing

    Posted 03-27-2018 05:35
    I have a cash only practice and the cheapest credit/debit card merchant I found was paypal. Their website clearly lays out the charges which are few and simple without the usual hidden fees.

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    Elizabeth Weeks
    Apple Tree Medicine, PLLC
    Williamsburg VA
    7573783952
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  • 5.  RE: Merchant billing

    Posted 03-28-2018 04:28
    We've been in a direct care practice for 8 years at Wichita's Leading Direct Primary Care Practice.

    Our credit card rates are 2.1% for all credit cards and a 30c transaction fee.  Just $0.25 for each ACH transaction.

    Let me know if there is anything else I can do to help.
    Thanks,
    Josh
    drjosh@atlas.md
    C 316.734.8096​


  • 6.  RE: Merchant billing

    Posted 03-30-2018 08:19
    I use Square which is 2.75 on all transactions unless they're keyed in.  For me Square has been extremely helpful, because of the size of my practice. I am unusual in that I have no employees. I do everything. This is only possible for me due to the fact that I do not take insurance and am cash based practice.  So with that said the app that comes with Square allows me to use it as a cash register per se. So even if the patient doesn't pay with credit card, but with cash I can log it in. It makes it much easier at the end of the day to see what the total income was an overall data capture. There is also some accounting software that will allow you to automatically sync this data into it. I am currently not using one and am fine with typing in the actual amount into mine (Freshbook, got a free subscription). Just some additional food for thought.

    --
    Curtis Gale-Dyer, D.O.
    Lexington Osteopathic
    101 Malabu Dr. Suite 10
    Lexington, KY 40503

    Office: (859) 550-3399
    Fax:  (859) 277-0199





  • 7.  RE: Merchant billing

    Posted 04-01-2018 08:11
    Thank you. what do you mean by "keyed in"?

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    Valsa
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  • 8.  RE: Merchant billing

    Posted 04-02-2018 05:25
    "keyed in" is if you manual type in the credit card number and not use the stripe or chip.

    --
    Curtis Gale-Dyer, D.O.
    Lexington Osteopathic
    101 Malabu Dr. Suite 10
    Lexington, KY 40503

    Office: (859) 550-3399
    Fax:  (859) 277-0199





  • 9.  RE: Merchant billing

    Posted 04-03-2018 12:42
    Also, we've been talking about the loss of money from the fees but we haven't talked about the tax benefit. These fees are considered bank fees and are able to be written off on your taxes. Just something else to consider.
    --
    Curtis Gale-Dyer, D.O.
    Lexington Osteopathic
    101 Malabu Dr. Suite 10
    Lexington, KY 40503

    Office: (859) 550-3399
    Fax:  (859) 277-0199





  • 10.  RE: Merchant billing

    Posted 04-01-2018 08:18
    Thanks Josh.

    Are these rates through Atlas EMR? Or even without the EMR use?

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    Valsa
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  • 11.  RE: Merchant billing

    Posted 04-02-2018 05:29
    yep, thats through the emr currently.

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    Josh Umbehr
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  • 12.  RE: Merchant billing

    Posted 03-28-2018 21:26
    I would look at these guys:
    https://paymentdepot.com/




  • 13.  RE: Merchant billing

    Posted 04-01-2018 08:17
    Thanks Justin.

    It looks like you paythem at the minimum (depending on your monthly income) $49/month and then you pay just the Visa/mastercard wholesale processing fees.

    Have you used them and at what is your opinion of using them for someone just starting.

    thanks

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    Valsa
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  • 14.  RE: Merchant billing

    Posted 04-02-2018 07:52
    I have not used them. I was doing a cash pay based practice, and papal’s processing charges were really starting to get irritating, so I started looking around at alternatives.
    At the beginning, I think paypal, square, or similar probably makes the most sense. Even if you you are paying 2-3%, when monthly revenues are ~$5k, realistically you are only looking at $100-150/month in cost, so the actual difference in 2 vs 3% does not amount to much money. As revenues increase, you are talking about thousands of dollars a year in savings, so it makes sense to be picky. In the beginning, you just need to get the doors open, then iterate and find what is and isn’t working. Paypal, square, etc., are good for that, because they are fast and easy.




  • 15.  RE: Merchant billing

    Posted 03-27-2018 13:19
    Individual merchant services vendors and processing groups have different systems.   I used an internet website for a CME conference I administered using a local merchant service processor recommended by my local credit union (which was pro-small-business friendly) and Authorize.Net  had a small per-unit fee after the monthly charges ($20/mos Authorize.Net and then Merchant services/Clearant was $23/mos but then increased to $39/mos or so due to increased security regulations nationwide for IT processing)   and since my product cost about $400 a per unit fee was proportionately very small.

    If I was a coffee house and each transaction was $4 that would be a chunk.

    In medicine - for cash practice - think about your charges (based on time? I assume?) - generally you'll have pretty large charge with fewer "units" of that charge so a per-item fee would generally be favorable for you.

    I just scouted around and did some math - - credit cards without the card swipe was  2 - 2.5% and if the card is present I was offered 1-2% fee so definitely shop around

    that being said - everyone used the website.


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    D Lathrop
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  • 16.  RE: Merchant billing

    Posted 03-28-2018 04:34
    I will offer a follow-up thought:

    I really wanted physicians (prime targets for identity theft, etc.) to feel secure in their transactions, as I would want my patients to feel, which is why I chose to pay for a top of the line "brand"  for the processing.

    Also, you will want to make sure Patient Health Information/Identity are adequately protected to meet whatever regulations exist on that too.

    Probably millennials don't think too much about what is "out there" on line, or what secondary info might be hacked or utilized - so your patient population and their preferences may guide your choice a bit.   If people are seeing a doctor they might not want PayPal having those transactions listed, unless you created a very innocuous billing/corporation name.  Hard to say.

    One thing I learned from my research was even if the "system" offers security, the weakest point of the security system is the middle "man" - - things that a transaction has to pass through to get to banks, or cloud, whatever.  So make sure you are at least aware of what those entities are - because you and your corporation will be liable for that aspect if problems arise.

    IMHO I don't regard PayPal as very secure - though it might be.

    Deborah

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    D Lathrop
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