Why Your Orthodontic Office Should Charge a 3% Credit Card Fee

Lately, I’ve been noticing a trend across the businesses I visit—credit card transaction fees are being passed directly to the consumer. Just last week, I took my truck in for an oil change, and when I went to pay with my credit card, I saw a 3% fee added to my bill. This isn’t an isolated occurrence—many service-based businesses have started implementing this strategy to offset the rising costs of credit card processing.

As orthodontists, we process a high volume of transactions, often with significant dollar amounts attached. If you’re not factoring in credit card fees as part of your pricing strategy, you’re likely losing thousands—if not tens of thousands—of dollars each year.

That’s why we’ve made the decision to implement a 3% credit card processing fee in our practice. And while some might hesitate at the idea of adding a surcharge, the reality is that this approach offers financial and strategic advantages that benefit both the practice and the patient.

How We Implement the 3% Credit Card Fee

Our approach is simple and fully transparent. During the new patient exam, we include an assumed 3% line item fee for credit card payments in the financial estimate. Patients can see exactly what the fee would be if they choose to pay with a card. This achieves two important objectives:

1. Encouraging ACH Payments to Reduce Costs

One of our goals is to reduce overhead and increase profitability, and a key way to do that is by steering patients toward ACH (Automated Clearing House) payments instead of credit cards. ACH payments come with zero processing fees, whereas credit card fees typically range from 2% to 4% per transaction.

To put that into perspective:

• If a patient puts a $6,000 treatment fee on a credit card with a 3% processing fee, that’s $180 in fees per patient.

• Multiply that by 100 cases per year, and you’re losing $18,000—money that could have been reinvested in your practice.

By making the 3% credit card fee visible, patients become more aware of the cost and often opt for ACH payments, which keeps more revenue in our practice.

2. Using the Fee as a Negotiation Tool to Increase Case Acceptance

Beyond reducing overhead, this 3% fee also serves as a powerful sales tool. When a patient is hesitant to start treatment due to cost concerns, we can use the removal of the fee as an incentive to get them to commit.

For example:

• If a patient expresses hesitation about starting treatment, our team can say,
  “I know cost is always something to consider. If you’re ready to get started today, we’d be happy to waive the 3% fee for credit card payments, making treatment more affordable for you.”

This gives the patient a real, tangible benefit for scheduling treatment immediately, while also allowing us to maintain pricing integrity and control over our profitability.

Why More Businesses (and Orthodontic Practices) Are Doing This

Credit card processing fees are a hidden cost that many businesses have been quietly absorbing for years. But with rising operating costs and tighter profit margins, more and more businesses—including restaurants, service providers, automotive shops, and even healthcare offices—are shifting these costs to the consumer.

Orthodontic offices, in particular, should take note because:
-Our transaction sizes are significantly larger than most retail purchases.
-We have long-term payment plans, meaning multiple transactions over time.
-We have a high percentage of credit card payments, which directly affects our bottom line.

Instead of absorbing these costs, we should be proactive in educating our patients about the fee and offering them an alternative payment method (ACH) that benefits everyone.

Addressing Patient Concerns

Some orthodontists may worry about patient pushback. The key is transparency and education. Most people are already used to seeing credit card surcharges in other businesses, so it won’t come as a surprise.

Here’s how we explain it to our patients:

“Credit card companies charge us a fee for every transaction. Instead of raising our treatment fees across the board, we provide patients with the option to avoid the fee by using an ACH bank transfer, which has no extra cost. This way, we can keep treatment prices as low as possible while giving you control over how you pay.”

By framing it this way, the patient understands the reasoning and often appreciates having an alternative option.

Final Thoughts: Should Your Practice Implement This?

If your office isn’t already passing along credit card processing fees, you’re leaving money on the table. A 3% surcharge is an easy and effective way to protect your profitability, steer patients toward more cost-effective payment options, and create a built-in negotiation tool that helps close more cases.

🔹 Want to reduce overhead? Implement a credit card fee.
🔹 Want to increase case acceptance? Use it as an incentive.
🔹 Want to take home more profit? Encourage ACH payments.

In an era where costs are rising and efficiency is key, orthodontic practices must think like businesses. The businesses around us have already adapted—it’s time we do the same.