Do you provide chiropractic services? Do most of your customers pay using a credit card? Wouldn’t it be great if you could get rid of those credit card processing fees? In some cases, they can be as high as 4%! Now there is a way to legally eliminate nearly all of your processing fees through the cash discount program.
It is likely that you offer a number of chiropractic services ranging from an average therapy session to more expensive treatment. So your customers could be paying anywhere from ~ $50 to ~ $200 or more for each session. For many patients, it is very difficult to pay their bills in cash, so chances are a high percentage of them pay their fees with a credit card.
Why not just add a Surcharge?
Surcharging is illegal in 10 states, including some of the larger states like Florida, California and New York. On top of that, credit card companies don’t like it when merchants add surcharges, because they believe it discourages people from using their cards. For this reason, companies like Visa, American Express and MasterCard have strict guidelines which include a lot of hoops you have to jump through to properly implement a surcharge program.
The other problem with surcharging is that customers may not like it much. Many will see this as an additional fee for using a credit card, which it is. The psychology of having to pay more to use a card does not always go over very well with consumers. They have seen this with government agencies, utilities, and other large companies, so they are becoming more accustomed to it. Still, patients may be a little put off if they see that it costs them more to use a credit card.
What is the Cash Discount Program?
Cash discounting is a legal way (in all states) for you to get your patients to pay for your credit card processing. You will need to use a merchant services company that provides the right terminal that is preprogrammed to be compatible with the cash discount program. When you switch over to a cash discount provider, they should be able to place the terminal in your office for free with no monthly contracts and no long-term commitment.
The credit card terminal automatically adds the “service fee”, which is usually 4% of their bill. For example, if a patient’s bill is $50 and they paid by credit card, the total payment would be $52.
Your merchant services company will also provide signage that you are required to display in your office where all of your clients can see it. The signage will explain to patients that a 4% service fee is applied to all sales, and that as an incentive for cash-paying customers, a 4% discount is applied immediately if payment is made by cash or gift card.
You may be asking, “what’s the difference between this and surcharging?” It is true that the two practices are similar, but with a cash discount, you are technically providing a discount for paying in cash instead of charging extra to pay by credit card, and the signage you display makes that clear to patients.
The psychology of offering a “cash discount” rather than an extra surcharge helps patients adapt more easily to this type of program. Everyone likes to save money, and when they are offered an incentive to do so, they are often very appreciative of that option.
You can also explain to your patients that, by offering a cash discount, you are able to keep your fees more affordable for everybody. And at the end of the day, most patients are not going to worry much about paying an extra $2 to $8 for their services for the convenience of using a card. They know that it costs you money to accept credit cards, and if they are happy with the treatment you provide, this will probably make very little difference.
Since its introduction, the cash discount program has been very successful for businesses across the country. Thus far, thousands of merchants have already implemented the program, and most have seen almost no impact at all on their business.
In fact, according to a Payments Journal survey, businesses said that 99.2% of their customers didn’t even mention the cash discount, let alone complain about it. So at the end of the day, cash discounting accomplishes the same thing as surcharging, but it is done legally and in a way that is far more acceptable to customers.
Now is a Good Time to Introduce a Cash Discount Program at your Practice
Will your chiropractic practice benefit from a cash discount program? One thing is for certain, it will save you money. And not just a few dollars either. If you’re like most businesses, you have credit card processing sales people coming through from time to time claiming they can lower your bill. But with traditional pricing, everyone has to pay Interchange fees, and as mentioned earlier, these can be as high as 4%. This means that if you switch providers and stay on traditional pricing, the savings will be negligible.
With the cash discount program, you are eliminating Interchange fees and most of the other fees as well. To run the program, the provider may charge a low monthly rate of $50 to $100 and/or a simple per transaction fee of 10 cents to 15 cents.
At National Franchise Business Solutions, we are partnered with EZ Pay, the national leader in cash discounting. EZ Pay has a program where you pay no monthly fees, no annual fees, no batch fees, and no other junk fees. All we charge is a simple 15 cents per transaction fee to run the program. We even give you one free terminal placement, and there are no long-term commitments and no risk to try out the program.
How would EZ Pay’s cash discount program impact your practice? Let’s say you do 250 credit card transactions each month and your average transaction is $100. This would mean a total of $25,000 in monthly credit card processing. Under traditional pricing, you would likely pay on average at least 3% per transaction, which would be $750 in processing fees, and this is on top of monthly minimums, the monthly cost to lease the terminal, and whatever other “junk” fees they decide to tack on.
With the EZ Pay cash discount program, you would pay just 15 cents per transaction X 250 = $37.50. Subtract $37.50 from $750 and you come up with a savings of $712.50 per month, or $8550 per year. As a chiropractor, what could you do with an extra $8550 this year?
Maybe you could put that toward the rent for your current location or to help open a new location. Or maybe it could help pay for some new equipment or technological upgrades. Isn’t it time to let your patients pay for their own airline miles and other rewards programs and put this money back into your clinic?
If you want to learn more about the cash discount program and how it can help your chiropractic office, call us today at 651-202-8636 or send an email to EZPay.Paul@gmail.com. We appreciate your interest and we look forward to serving you!