It’s very common for alternative health care practitioners to work on a “cash or check” only basis. There are several compelling reasons to consider other options.
The usual resistance to accepting Visa, Mastercard and the like is the cost. You pay a monthly fee for the account, plus a percentage of the transaction. For the new CAM grad, or struggling startup, (or anyone, really) every outgoing dollar hurts, and it’s easy to put the credit/debit issue on hold for “another day”.
Here’s why you should accept them from day one:
People will come more often
The credit card industry thrives for a reason. People need credit so they can access goods and services when they need them, and nowhere is this more critical than in alternative health care. Health care is often an urgent need, and alternative health care is often an out-of-pocket expense.
If you don’t accept credit cards, you may be forcing people to take their acute health concerns elsewhere. If they simply MUST have treatment, they’ll have to go to someone who will offer them payment convenience. And even if you allow people in your practice to run an account, your clients may be too shy to choose that option. Most people are very reluctant to admit they’re “running a little short”.
Even Patients With Insurance or Benefits Need Credit
Unless you’re doing the insurance paperwork on your client’s behalf, most of the time they’ll pay you, and then be reimbursed by their employer, insurer, etc. However, most people are a paycheck or two away from poverty all the time. That means they need credit in order to get the service now, and then collect the money later. If you don’t accept credit cards, the reality is even those people with health coverage may not be able to afford to see you.
You get paid instantly
It takes about 30 seconds at the end of the business day to transfer all the money collected that day in debit and credit payments directly into your bank account. No deposit forms, no drive to the bank, no waiting in line. It’s a direct funnel from your client to your bank account. Calculate how much time you or your staff spend in these banking related activities, and you’ll find that a 3-5% transaction fee on Visa might start to look a little more attractive.
The money’s good
If you let people run accounts, you have money that’s not earning you interest for months at a time, and you run the additional risk of never seeing the money at all. Swiping a credit card guarantees you get the money.
No bad cheques. No counterfeit cash. These types of transactions are about as close to “real cash” as your alternative health practice can get.
It’s just good service
Adopt this valuable business philosophy: Don’t make it hard for people to pay. If they want to use a debit card, then so be it. The customer knows best. And remember, health care is generally not a “pennies and nickels” business. Most CAM practitioners are billing a decent hourly rate. Your clients will want some payment flexibility in exchange for your premium service.
It’ll pay for Itself
Let’s take an example. Suppose Jane skips an appointment with her Naturopath because she’s a little short on cash. Sure, that transaction might cost you $3-$4 on Mastercard, but if she never comes at all, that’s $100 in lost revenue, which would have paid for the bulk of your credit/debit transactions that month! Which would you prefer, $97 or zero?
CAM Practitioners tell me, “But nobody ever complains that I don’t take credit cards.” It’s true, they don’t complain to you. But they DO complain. They complain to their friends, family, particularly to the practitioner down the street who does take credit cards.
Make sure you accept credit and debit cards. It’ll easily pay for itself every month!
