If you run a medical clinic, dental practice, pharmacy, or other healthcare organization, you’re already managing enough complexity. Between patient care, staffing, compliance, insurance, and rising operating costs, your payment processing statement should bring clarity, not confusion. The last thing you need is a payment statement that hides costs instead of explaining them.
In fact, healthcare administration consumes billions of dollars every year. Research published in the Annals of Internal Medicine found that administrative costs account for 17% of Canada’s healthcare spending and 34.2% in the U.S., highlighting just how expensive complexity can become.
Here’s why many merchant statements are so difficult to understand.
Different types of fees are often bundled together using confusing terminology. Card brand fees, interchange, processor markups, and monthly account fees can be scattered across multiple pages, making it difficult to determine exactly what you’re paying.
Your processing costs are made up of three components:
- Interchange fees paid to the card issuing bank
- Card network assessments charged by Visa and Mastercard
- Your processor’s markup
Your effective rate can also change every month, even when revenue stays the same.
Why?
- More patients paying with premium rewards or corporate cards increase interchange costs.
- Card-not-present payments, online invoices, or manually entered transactions carry higher processing costs than chip or tap payments.
- Fixed monthly fees represent a larger percentage of costs during slower months.
Administrative complexity already consumes valuable staff time. A study in the New England Journal of Medicine found that physicians spend significant time on administrative work, representing 16.1% of gross income in Canada and 26.9% in the U.S.
Your payment processing shouldn’t add to that burden.
A transparent statement should answer one simple question:
Where is every dollar going?
If it doesn’t, it’s worth having someone review it. I’d be happy to take a look.
Let’s bring some transparency back to your business expenses.