Cheryl McKenna with Merchant Advocate
Cheryl McKenna works with dental practices to help them save on their merchant services fees WITHOUT changing processors. She will decode your merchant statement to find any issues that cause you to overpay, then fix those so you can keep your current provider but save money! Reach out for a free analysis. email or call or text to 720-526-5318
Hey friends, welcome to today’s episode! I’ve got a treat for you because joining me is a dear friend and fellow Coloradan, Cheryl McKenna, Director with Merchant Advocate. What Merchant Advocate does is pretty simple – they help businesses like yours save money on merchant fees without having to switch credit card processors. We all know how frustrating credit card fees can be, so I’m excited to dive into this topic with Cheryl. We’ve been friends and colleagues for over a decade now, and we love to collaborate, especially when it comes to saving businesses money. Welcome, Cheryl!
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Cheryl McKenna: Thanks, Dayna! I’m thrilled to be here and excited to talk about something that’s been on a lot of people’s minds – credit card fees, particularly passing them on to patients in dental practices.
Dayna: Yes, exactly! I’ve had so many offices ask me, “Can we pass these fees onto patients?” And honestly, it’s such a common question that I thought it was time to bring in the expert – you! This topic came up recently at our Colorado Consultants Women in Dentistry breakfast. How long has this been an issue in the industry?
Cheryl: You’re right, Dayna. The ability to pass on credit card processing fees has been around for about eight years, but it’s really picked up in the last couple of years. Some lawsuits allowed businesses to pass on these fees, and with rising costs across the board, a lot of practices are looking for ways to cut expenses. So when merchant service companies come in saying, “You don’t have to pay for credit card fees anymore,” it sounds really appealing. But like I always say, if it sounds too good to be true, it probably is.
Dayna: Absolutely! Merchant fees are just part of doing business, right? I take credit cards in my own business, and I budget for those fees. One thing I love about what you do is that you go through those complicated statements and catch all those junk fees that credit card companies sneak in. Those tiny fees can add up to huge amounts when you multiply them across thousands of transactions.
Cheryl: Exactly! We go through those statements and find crazy charges that are hidden in those confusing acronyms. People usually don’t notice, but it’s a lot of money when you add it all up. And that’s what we specialize in – saving our clients money without them having to change processors. But I want to circle back to what we were talking about earlier – why this whole passing on fees to patients is a get-rich-quick scheme.
Dayna: A get-rich-quick scheme? That sounds serious. Can you explain more?
Cheryl: Sure. So, imagine a dental practice that processes $50,000 a month in credit card payments. Normally, the practice should pay around 1.6% to 2% of their total sales in merchant fees. But these processors convince practices to pass 3% or even 4% of that cost onto the patient. So, now the processor is pocketing that extra 1.5% to 2%, which can add up to thousands of dollars. They’re getting rich off your patients, and it’s just rude!
Dayna: Wow. That’s not just rude – it’s downright predatory. They’re making money off your patients, and the practice isn’t even saving that much. Plus, I’d worry about the impact on patient relationships. No one wants to feel like they’re being gouged for using a credit card.
Cheryl: Exactly! And it’s not just the money. Visa and MasterCard have strict rules about passing on fees. If a patient complains about being charged extra, the fines start at $1,000 and can go as high as $25,000 for non-compliance. If you don’t follow the rules perfectly, you could even lose the ability to accept credit cards altogether.
Dayna: Wow, I didn’t realize it was that serious. What about practices that are still interested in passing on fees? Is there a way to do it legally without all these risks?
Cheryl: There are two main methods. One is the “cash discount” model, where you raise all your prices and offer a discount to patients who pay with cash. The second is “surcharge,” where you only pass fees to patients using credit cards, but not debit cards. But both methods have strict compliance rules – including signage, proper receipt printing, and caps on the fees you can charge. If a practice isn’t careful, they could easily end up non-compliant and facing fines.
Dayna: That sounds like a lot to manage, especially for a busy practice. It seems like the risk outweighs the benefit. And like you said earlier, patients are getting more price sensitive. People notice these things, and you could lose a patient over a small surcharge.
Cheryl: Exactly. I’ve seen practices try it, only to find out that it wasn’t worth it. Patients get upset, they switch to debit cards to avoid the fees, and the practice ends up saving very little while risking compliance issues. It’s just not worth it.
Dayna: So, instead of passing fees to patients, the better option seems to be looking for savings elsewhere – like finding and fixing those hidden fees on your merchant statements. Or, as you and I have discussed, making your practice more efficient with technology and better systems.
Cheryl: Absolutely! There are so many ways to cut costs without making your patients feel like they’re being nickel-and-dimed. Merchant Advocate can help you save money, and you don’t have to change processors or upset your patients in the process.
Dayna: I love that. Thanks so much for breaking this down, Cheryl. For everyone listening, we’ll put some helpful links in the show notes. And remember, there are better ways to save money than passing fees on to your patients!
