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Like football, pharmacy is a game of inches. Little things add up to determine your pharmacy’s long-term success. These “nickel and dime” successes or mistakes accumulate to something that can help or hinder your pharmacy in the long run.
Such is the case with credit card surcharges. Credit card surcharges have become a mainstay in the world of retail. Naturally, it’s part of your pharmacy.
In the spirit of PioneerRx new allowing pharmacies to pass on credit card surcharges, let’s deep dive into the ins and outs of this tiny (but possibly mighty) fee.
A credit card surcharge is a fee enforced by a merchant to compensate for credit card payment processing fees. The surcharge is often a percentage of the overall purchase cost and can range from 1% to 4%, according to Fortune.
Though a credit card surcharge may appear small or inconsequential at first, it can add up as your pharmacy and patient base grows; in essence, the bigger your pharmacy, the bigger the credit card surcharge.
PioneerRx now allows pharmacies to pass on some or all of their credit card processing fees to patients. Read on to learn how you can move the credit card surcharge with PioneerRx and its subsequent benefits.
PioneerRx pharmacies are already using the credit card surcharge feature. Joseph Poling, COO and President of Good Day Pharmacy and guest on the Beyond the Scripts Podcast, goes over the relief this feature offered his pharmacy operations.
“Implementing the Credit Card Surcharge has significantly reduced our expenses. While the charges on individual transactions are small, they accumulate to a considerable amount over time, leading to substantial savings.”
By passing on credit card surcharges to patients, pharmacies are reducing their own costs, little by little. Given that credit card surcharges are commonplace nowadays, passing them on to patients shouldn’t be too much of a shock.
However, there are a few things to consider before passing the credit card surcharge to your patients — and it mainly boils down to communication.
Read our Featured Feature article to learn more about the Credit Card Surcharge feature in your PioneerRx pharmacy software.
While passing on credit card surcharges offers a practical solution to mitigate credit card processing fees, it's important to consider whether passing these surcharges to your patients aligns with your pharmacy's values and business model.
Introducing a surcharge might negatively impact how your patients perceive your pharmacy. They might see it as an added burden, especially if they are not accustomed to such fees at other healthcare providers.
“The biggest challenge has been with our delivery customers,” Joseph says. “Explaining this change over the phone or through text communication has proven difficult. [...]
“However, complaints have been minimal since many businesses around here already pass this fee onto customers, so many were familiar with it.”
What’s more, patients might choose to go elsewhere to avoid the extra cost if nearby pharmacies do not pass on credit card surcharges,
Clearly explaining the reason for the surcharge to your patients is crucial. Without proper communication, patients might misunderstand the rationale behind the fee, leading to dissatisfaction and potential loss of business.
Joseph urges everyone to think of the potential pros and cons of adopting this feature, placing a high premium on clear communication and considering your patient demographics.
“Consider the types of patients you serve and whether most transactions occur in person. Be prepared for the possibility of losing a few customers, as this policy must be uniformly applied to all patients.”
While surcharging offers a practical solution to mitigate credit card processing fees, it's important to consider whether passing these surcharges to your patients aligns with your pharmacy's values and business model. Consider the following solutions to ensure smooth and (somewhat) seamless implementation.
Ensure that you communicate the surcharge policy clearly to your patients. Transparency can help mitigate any negative perceptions.
Also, consider your patient demographics. Understand your patient base and their likely reactions to the surcharge. For some, the additional fee might be a non-issue, while for others, it could be a significant concern.
Finally, consider implementing the surcharge on a trial basis to gauge patient reactions and the financial impact on your pharmacy before committing to the long-term.
In conclusion, while passing on credit card surcharges to patients can provide financial relief for your pharmacy, it's essential to weigh the potential benefits against the possible downsides. Make an informed decision that aligns with your business goals and maintains a positive relationship with your patients.
