If you're a veterinarian, chances are you've been asked about accepting credit cards. And if you're not currently accepting credit cards, you may be wondering if doing so is right for your business. After all, nearly everyone carries a credit card these days, and the ability to accept plastic can mean more customers and more revenue for your veterinary practice.
However, before you start accepting credit cards, it's important to understand the ins and outs of veterinary credit card processing. In this guide, we'll cover everything you need to know about vet credit card processing, including the different types of plans available, the fees involved, and how to choose the right processor for your business.
What is Veterinary Credit Card Processing?
Veterinary credit card processing is the process of accepting credit cards as payment for goods or services at your veterinary practice. This can be done via a point-of-sale (POS) system, online, or over the phone.
In order to accept credit cards, you'll need to sign up for a merchant account with a credit card processor. The processor will then provide you with the necessary equipment and software to process credit card payments.
Types of Veterinary Credit Card Processing Plans
There are two main types of veterinary credit card processing plans: tiered pricing and interchange-plus pricing.
Tiered Pricing
With tiered pricing, your credit card processor will lump all credit card transactions into one of three categories: qualified, mid-qualified, and non-qualified. The processor will then charge you a different rate for each category.
Qualified transactions are the cheapest to process, while non-qualified transactions are the most expensive. Mid-qualified transactions fall somewhere in the middle. The problem with tiered pricing is that it's often difficult to determine which category a particular transaction will fall into. As a result, you may end up paying more than you should for some of your credit card transactions.
Interchange-Plus Pricing
With interchange-plus pricing, your processor will charge you a flat fee (the "interchange" rate) plus a small percentage of the transaction amount (the "plus" rate). This pricing structure is often more transparent than tiered pricing, as you'll know exactly how much you're paying for each transaction.
Additionally, interchange-plus pricing typically results in lower overall processing costs than tiered pricing. That's because the interchange rate is the same for all processors, so you're only paying the "plus" rate to your processor.
Veterinary Credit Card Processing Fees
There are four main fees associated with veterinary credit card processing:
1. Interchange Fees
Interchange fees are charged by the card issuer (e.g., Visa, Mastercard, etc.) and typically range from 1-4% of the transaction amount. These fees are non-negotiable and are the same for all processors.
2. Assessments
Assessment fees are charged by the card associations (e.g., Visa, Mastercard, etc.) and typically range from 0.1-0.3% of the transaction amount. Like interchange fees, these charges are non-negotiable and are the same for all processors.
3. Processor Markup
The processor markup is the fee charged by your credit card processor for processing a credit card transaction. This fee is typically a percentage of the transaction amount, plus a small per-transaction fee.
4. Gateway Fees
If you process credit card payments online or over the phone, you may also be charged gateway fees. These fees typically range from $0.10-$0.30 per transaction and are charged by the gateway provider (e.g., Authorize.net, PayPal, etc.).
