My physician charges a 5% premium "service charge" if I pay by credit card online...

[Oopsie Daisy]

My physician charges a 5% premium "service charge" if I pay by credit card online. Their payment page remembered my credit card info from a previous co-pay... but also wanted me to verify my 3-digit code on the back of my card.

I'm old, I can't remember that. Rather than getting up to go double-check my card... I chose the "Google Pay" option instead.

When I selected Google Pay, the 5% service charge and courtesy fee disappeared, and I was able to pay my co-pay amount WITHOUT any service charges. Nice!

But I still paid with a credit card. What's going on? Is the service-charge / courtesy-fee just a blatant money-grab that Google Pay does not allow them to do? — I'll be using Google Pay with them in the future.

[jmbar2]

1. They have to pay a fee when their patients pay with credit cards

My dentist reduces my bill by 5% if I pay by check.

[Attilatheblond]

5. Most people aren't aware that the credit card companies levy fees on merchants & service providers

Sometimes I see gas stations list 2 prices, one for cash, one for bank credit cards. It costs them money with every charge, so I understand and am fine with the charge.

[Oopsie Daisy]

12. Those transaction fees are 1.5 to 3.5% ... not 5%.

[pstokely]

15. many places have gone cashless

and they still charge fees

[jmbar2]

20. I didn't know that til my dentist's office explained it

I think a lot of people are unaware.

[Oopsie Daisy]

6. Yes. And according to Google... it's just 1.5% to 3.5%

Physicians generally pay 1.5% to 3.5% of each credit card transaction to process payments. This fee, also known as an interchange fee, is charged by the credit card networks (Visa, Mastercard, Discover, American Express) and the merchant services provider (payment processor). American Express cards can have even higher fees, ranging from 2.5% to 3.5%.

So why the extra percentage points? And why would they not charge it if I'm using a credit card through Google Pay. (So many questions.)

[mitch96]

19. I went to a dermatologist that would not take cash or check only credit card. After a lot of back and forth with

the manager I said If you take me to court you will. loose. I am providing payment, just not the way "they" like it... She finally took a check...uff..
m

[Oopsie Daisy]

21. Good for you!

[mitch96]

22. Now when I make a medical appointment I ask what form of payment they take...nt

[FadedMullet]

2. Thanks for posting this. I've been seeing these "service fees" too and wondered how to avoid them.

[Mosby]

3. Send them a check.

See how they like that.

[Oopsie Daisy]

8. I used to do that back in the day.

According to a Google search:

In 2023, checks were used for only 3% of all payments, according to the Federal Reserve Bank of Atlanta. While this is a small percentage, checks still play a role in some transactions, especially for high-value payments. For example, consumers are more likely to use checks for utilities, rent, and charitable donations.

[Freddie]

17. Yup. Any place that charges a "convenience fee" for paying online

Gets a check in the mail. You’d rather deal with physically depositing the check and waiting for it to clear? Too bad.

[RhapsodyFav]

18. Absolutely!

You want to charge me a fee to get my money faster and more secure. I'll make you pay the salary of a person to physically handle my check and wait for time for it to get deposited.

[Raven123]

4. Shhhh. Don't tell them.

[bucolic_frolic]

7. Time was, surcharging was illegal. That changed in 2013, but varies by state.

https://www.lawpay.com/about/blog/credit-card-surcharge-rules/

5% seems an excessive fee.

[Oopsie Daisy]

10. Yes... it is. I completely agree.

Sure, there's a transaction fee their bank or credit card processor charges them... but they should just crank-it-in to the cost of doing business. Also, if they were smart (and had a Costco Executive membership) they could get discounted credit card processing from Elavon.

Yes, Elavon is still associated with Costco, and has been for over 25 years. Elavon is a payment processing provider that Costco has partnered with to offer merchant services and payment processing solutions to their members. This partnership allows Costco members to access Elavon's services with special benefits and low rates.

[bucolic_frolic]

13. In many states they are only allowed to charge up to the cost of the fee.

Exceeding the fee is illegal in those states. I'd bet not much is done about it though.

[nilram]

9. At one time, that was against the CC company's rules.

And you could report them to the company. Maybe they've changed the rules, or there was a court case that allows it?

[cpamomfromtexas]

11. This used to be illegal now its not.

Cant remember exactly when this occurred

[CTyankee]

14. I only use a debit card. It works for me!

[Silent Type]

16. Doctors trying to stay in the 95th Percentile of incomes.