Payments In the Practice CONTINUED FROM PAGE 19
average dental transaction size from 2019 onward marked a substantial difference compared to 2009-2019, the 11.87 percent increase hasn’t kept up with the economy- wide price hike.
AMOUNT AVERAGE PRACTICE PAYS TO RUN CARDS
While the average dental office’s payment volume has increased, the costs incurred to run those payments have also increased, and often these fees can be hard to under- stand. What’s easy to discern, however, is the impact on the bottom line of the practice. To figure this out, you should calculate your effective rate with some simple math:
Total Fees Paid for the month ÷ Total Run in Card Sales for the month = Your Effective Rate
In 2023, the average dental office in the U.S. paid 3.53 percent compared to 3.06 percent in 2019. These rates are already too high, but to put it in perspective, back in 2014, the average dental office paid 2.84 percent.
So, the average practice is paying more as a percentage per payment, while also accepting 45 percent more card payments than they did back before the pandemic. That makes a big difference. Put in real numbers:
• The average office in 2019 ran $30,876 at a rate of 3.06 percent for a total of $944 per month in fees.
• The average office in 2023 ran $45,000 in card payments, and is now paying 3.45 percent, for a total of $1,585 per month in fees.
• For the average practice, that’s an increase of $7,692 per year in costs over just four years.
My credit card processing bills are 40-60 percent of what they use to be. Customer service is excellent compared to prior ones. I challenge members to do a cost analysis against their current company, I feel confident Best Card will beat it. — Dr. Ron Wilkerson, St. James
My credit card monthly processing bill is half of what it was before I switched to Best Card and I process three times more per month. Huge savings. — Dr. Jon Copeland, Wildwood
Our Macon office switched to Best Card after talking with Dr. Copeland’s office and we love it. We are planning to switch our other two offices as well. — Dr. Amanda Fitzpatrick, Associate, Long Branch Dental Group
While the average office paid more than 3.53 percent in 2023, Best Card’s average dental office on the exclusive rates offered to MDA Members paid 2.22 percent in 2023 for an average savings of $6,496 per year.
Dental practice owners are busy and some- times it is easy to overlook small increases in the costs of services you are using, but often those small increases are frequent enough to have a big impact. Any part of your business that increases substantially over time should be analyzed periodically to make sure that it’s meeting the needs of your bottom line. If you see you’re paying more to accept credit cards
while also taking more payments, it might be time to look for a better option. To find out what Best Card might be able to save your practice, send us a recent monthly statement and we’ll do a complimentary cost analysis.
• Phone 877-739-3952 • Email
compare@bestcardteam.com • Fax 866-717-7247
Phil Nieto is President of Best Card, the endorsed credit card processor of MDA and ADA Member Advantage. He enjoys working with thousands of dental offices to help minimize the headaches of accepting card payments by focusing on providing what the merchant services industry often lacks: innovation and integrity.
Business owners policies do not include flood insurance?
Flood insurance is the only way to protect your practice in the event of exterior water coming into your building or practice, which is no different than your homeowners coverage.
Call today! The MDIS team can help you with a quote for Flood Insurance.
ISSUE 1 | SPRING 2024 | focus 21
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