Hey there,

It’s time to clear up a complicated topic.

We’ve got to talk about payment processing fees.

Payment processors aren’t exactly known for their clarity. There’s jargon, fine print, and fees that seem to multiply when you’re not looking.

But here’s why it matters: understanding your effective rate, so, what percentage of each transaction will go toward fees, is key when deciding the best option for your practice.

Here, we’ll walk you through what goes into payment processing fees and how they can change depending on the transaction. And yes, we’ll also explain how fees work with Jane Payments, our PCI-compliant payment solution that offers a flat, per-transaction rate.

Understanding payment processing fees

It’s tough to make a confident decision about a payment processor if you don’t know what’s behind your payment processing fees. Here’s a closer look at what actually goes into them, and why the rate you’re quoted can end up higher than expected.

Payment acceptance method

One of the biggest factors in determining your fee is how you process the payment. Taking a payment in person with a card present via a terminal costs less than charging a stored card online, even if it’s the same card and the same payment processor.

A closer look:

🤝 Terminal Payments: This is generally where you’ll see a lower rate offered. Terminal rates tend to be lower because they have the benefit of a real person having to present a real credit card directly to you. This means the risk of fraud is considerably lower, and that is accounted for in what the processor charges you.

The downside? There has to be a person with a card standing in front of you to take the payment. And we know that doesn’t always happen. ‘Oops, I forgot my wallet!’ is a very common, human mistake.

🖥️ Online Payments: These fees are generally higher due to the increased protections required to receive payments online. Another reason online payments are more expensive is something called a Gateway fee. Anytime a service or software (like Jane) wants to integrate with a payment processor, a Gateway is required to facilitate the transfer of information. And you better believe that Gateway comes with a toll.

The benefit? Once your client has consented to keeping their card on file and having it charged, your whole payment experience is smoother. And bringing your wallet to an appointment becomes optional.

Interchange Fees

Next, we need to talk about interchange fees. These are the standardized fees that each processor has to charge depending on the card. Interchange makes up the largest part of all processing fees and is the same for all payment processors. The exact rate depends on the type of card your client uses.

A closer look:

💳 Card type: What type of card is being processed? MasterCard, Visa, or American Express? Certain cards are more expensive to process than others (we’re looking at you, AmEx 👀).

✨ Card perks: What are the perks? The next factor is just how fancy that card is. Does it provide tons of perks, like lounge passes and backstage access at concerts? The more perks offered to the customer, the more a business like yours will pay to accept it.

Common added or ‘hidden’ fees

These are fees that often don’t get included in the rate that is quoted to you.

A closer look:

💳 Card assessment / brand fees: These are the fees that are paid back to the credit card company.

💸 Per-transaction charges: Processing certain cards will include a flat fee, in addition to the percentage rate, for every transaction. For example, a credit card company might charge 1.8% + $0.10 per transaction.

📉 Minimum processing fees: Some processors will charge a monthly fee if the amount you process doesn’t surpass a certain threshold. For example, you may pay $10 every month that you don’t process over $8,000.

🔐 PCI compliance: This is a set of security standards that you might have to pay a premium for. These fees are often charged quarterly or annually, which can make them challenging to account for.

🧾 Terminal rental fees: This is another monthly fee you might be paying if you don’t buy your terminal outright, and should be factored into your total cost.

📄 Contracts: Some processors will lock you into a contract for a certain amount of time. If you want to switch payment processors, you may have to pay to exit the contract or continue paying a monthly fee until the contract period ends.

💡 Minimum processing fees can be especially costly for new or part-time practitioners. Pay special attention to this if you’re just starting out.

How rates work at Jane

Jane Payments is committed to transparent, pay-per-use pricing, with no hidden fees or contracts, and an optional terminal. If we’ve done our job correctly, there shouldn’t be any surprises when it comes to how much you’re paying to take credit card payments.

And, to make your life easier, all of your reporting and statements for both online and terminal payments are consolidated, and live right inside your Jane account, so you’re not left wondering about how much you’re paying.

Beyond the rates, practitioners who use Jane Payments find keeping their payments directly in their Jane account simpler. When your payments live under the same roof as the rest of your workflow you get fewer billing errors, accurate reporting, and a smooth customer experience.

What does this look like in action? You finish an appointment and send a patient on their way. No credit card swiping, no extra admin. Just a card on file you can charge at the end of your day. Pretty nice, right?

If you’re curious about our current rates, you can check them out here. Or, if you’d like, you can speak to a member of our team to chat about options.

Hi, I’m Alex from the Jane Payments team. 👋

Common questions

💡How do Jane’s rates compare to external processors?

💬 Jane’s answer: There are so many different options, so your best bet is to do a bit of homework (but we’ve made it a little easier). You can chat with our team to get an accurate look at your current rate and compare it to what Jane offers. All you’ll need is a current statement and a few minutes of your time.

💡Are Jane’s payment rates negotiable?

💬 Jane’s answer: This is a great question! We know every dollar matters, especially in the early days. With Jane there can be some flexibility, especially for those just getting started. You can book a chat with the team to explore the options.

If you’re already using Jane, the switch to Jane Payments is a relatively simple one. And as always, the Jane Team is here to help as you consider if this is the right move for you.

And for those new to Jane, welcome! We’d love to walk you through Jane Payments but also everything else we’ve got on offer. You can book a demo with the team to learn a little more.

Thanks for sticking with this. We hope payment processing fees feel a little less murky now. If you have questions, reach out. We’re here to help.

Chat soon,

The Jane Team 💙