Every business owner knows that certain costs are inevitable. But chances are, you’re shelling out a lot of cash for something that could easily be eliminated: Credit card processing fees.Getting rid of this unnecessary cost isn’t hard. You can free yourself from the burden of paying fees on every credit card transaction you accept at your medical spa or cosmetic surgery practice in two simple steps. How? With a fee-free credit card processing app.Once you set one up for your business, you’ll no longer foot the bill when your patients pay with plastic. In one year, you can save $14K on your laser resurfacing procedures alone. Interested in learning more? We’ve got you covered. Read on to learn all about fee-free credit card processing apps and how to set one up for your medspa or cosmetic surgery practice in as little as one business day.
How fee-free credit card processing apps save your laser resurfacing business money
Let’s start with the basics first. What exactly are fee-free credit card processing apps?These payment processors help you bypass the fees that usually come with credit card transactions. They’re passed on to your customers instead, thanks to what’s called a credit surcharge program. These programs let you offset transaction fees by giving your customers two choices: pay a small fee for using their credit card, or avoid these fees entirely by paying with cash, debit, or check. So, if a customer spends $100 at your business, you get the full $100—no matter how they pay. You avoid paying credit card transaction fees and take home 100% of the money you make. Plus, it’s completely legal, thanks to the Dodd-Frank Act.At first glance, the idea sounds great. But what would your patients think? With some cosmetic procedures costing a pretty penny, they surely wouldn’t be happy paying even more for their treatments. But what if we told you that many customers actually prefer this arrangement?For many years now, business owners have looked for ways to work around the cost of accepting credit card transactions. Some of them have decided to increase their base prices to absorb the cost of these transaction fees, plus the cost of the hardware and software needed to process these payments. In most cases, this cost increase comes out to more than the fee that customers would pay through a credit surcharge program. The bottom line: Customers actually end up saving money with this method. And if they choose to pay in cash, they can save even more. Either way, you give them the choice to do so, rather than forcing a solution onto them that no one really cares for.Still unsure if fee-free credit card processing apps are right for you? That’s understandable.However, you might change your mind once you find out how much you’re actually losing to transaction fees. Let’s crunch the numbers in the next section.
Why medspas lose thousands of dollars with traditional payment processors
For simplicity, we’ll focus on one type of treatment offered at businesses like yours: laser resurfacing. This procedure is offered at many medspas and cosmetic surgery practices to reduce the look of lines, scars, and other irregularities on the skin’s surface. However, the cost of laser resurfacing alone means that not everyone has access to this sort of treatment. The average cost of laser treatments in 2019 ranged between $1,201 and $1,963 per session, depending on what kind of laser was used. But this number doesn’t include additional fees incurred from initial consultation, anesthesia, facility costs, and post-treatment medication. On top of that, one session may not remove more stubborn issues, so patients may come in several times before they’re satisfied with their results. Ultimately, laser resurfacing is a highly lucrative offering at medspas and clinics all over the country. So, let’s say you charged $1,963 for every laser resurfacing procedure and performed 20 of them every month. You’d make $39,260. Not bad, right?But then the credit card fees kick in. Because laser resurfacing typically costs a thousand dollars at minimum, many patients use their credit cards to pay for it. A study performed by the Federal Reserve supports this: It found that people prefer to pay with credit over cash for large purchases. Merchant service providers (MSPs), the companies that process your card transactions, typically charge between 1.3% and 3.3% for every swipe of plastic.
So, if your MSP charges you 3% per transaction, you’re looking at a loss of $1,177.80 every month. In one year, that total balloons to a whopping $14,133.60.Just think about what you could do with that $14K instead.Would you put that money back into your business? Maybe you’re considering a remodel of your clinic to make it more appealing to your clients, or perhaps your marketing director has asked for an increase in your advertising budget.On the other hand, you could just as easily use that money for personal reasons. Maybe you’ve always wanted to take your partner to France, or your real dream is to become a winemaker. With an extra $14K in your pocket every year, you can reach your personal and professional goals that much quicker. Now that you know how much you’d save on laser resurfacing alone, imagine how much you’d save if you applied this line of thinking to the rest of your business. When you implement a fee-free credit card processing app, you can save tens (or maybe even hundreds) of thousands of dollars every year. If you think this could work for your business, here’s some good news: The whole process takes only two steps. Best of all, you might have already completed the first one, meaning you can start saving money even sooner than you thought. Find out how to get a fee-free credit card processing app below.
Follow these 2 steps to set up your credit surcharge program
It only takes two easy steps to start saving money with a credit surcharge program. Here’s how:
Step 1: Apply for a merchant account with a merchant service provider
Because laser resurfacing treatments cost a pretty penny, most of your patients pay with credit. This means you’re probably already working with a merchant service provider (MSP). If so, congratulations! You’re one step closer to saving thousands of dollars every year, and you didn’t even have to lift a finger. But if you don’t yet have an MSP, fear not. We’ll walk you through the process here. Your MSP has a direct impact on how your business processes transactions. Because of this, you’ll want to take extra care when deciding which one to go with. Here are some factors to consider when researching merchant service providers:
Customer service: If run into any issues processing transactions, you’ll want to solve them immediately. Look for a company that offers 24/7 support.
Experience with medical credit card processing: These MSPs already understand your industry and are able to tailor their assistance to your specific needs right from the beginning, saving you time and effort.
Up-to-date technology: Great MSPs provide the best hardware and software options, like virtual terminal credit card processing, to ensure seamless transactions for your customers—regardless of what your payment processing setup looks like.
Of course, you’ll also want to consider the costs of doing business with your provider. While price shouldn’t be the only deciding factor, choosing the wrong MSP can result in higher-than-expected costs, which defeats the purpose of getting started with fee-free credit card processing in the first place.MSPs charge a variety of fees for their services, so it’s beneficial to understand them before you shop around. Here are some of the most common fees to look out for:
Interchange fee: This fee goes to the card-issuing bank (like Chase).
Network fee: This fee goes to the payment network (like Visa).
Assessment fee: This fee goes to the card-issuing brand (like Delta Airlines).
Markup fee: This fee goes directly to the MSP for their services.
Here’s a tip that most people won’t tell you: Markup fees aren’t set in stone. Because MSPs are eager to work with highly profitable businesses like yours, you can potentially save even more money by negotiating on their fees. In fact, we’ve seen successful negotiations bring this fee down by as much as 5–10%.Once you find the right provider, you’ll set up your merchant account following their instructions. This process takes about a few business days to complete, on average. After you finish this step, you’ve done the majority of the legwork: The final step is much easier and involves very little work on your part.
Step 2: Connect your fee-free credit card processing app to your merchant account
This step involves more cooperation between your MSP and payment processor than anything else and should only take about one business day.However, you’ll want to make sure of one thing: That your merchant account and payment processor connect seamlessly. Otherwise, all of your hard work will be for nothing. Once setup is complete, you can now accept credit card payments with ease—no more throwing away money on unnecessary processing fees. You can now start saving even more money and make great strides towards your financial goals.
Achieve your financial goals quicker with Nadapayments
Our goal at Nadapayments is to make payment processing as simple and affordable as possible. When you choose us as your fee-free credit card processing app, we’ll take the reins on all things payment processing so you can focus on the things that matter most to your business. Our software and guidelines adhere to government regulations, so you’re always compliant with the latest changes in legislation. Our payment processing technology also interfaces seamlessly with most point-of-sale systems, ensuring that your precious time isn’t wasted. Even better? There are no setup costs. We offer free 24/7/365 support every step of the way, even after you’re all set up. We’ll even send you the necessary equipment free of charge so you can start saving money immediately. And if you decide you don’t like what we offer, no problem. Simply let us know you’d like to cancel your services, and we’ll take care of it immediately. No cancellation fees, and no hard feelings. To get started, contact our support team by calling +1 (929) 293-1800 or click the link below.