Veterinary Payments of America Experiences Steady Growth Focused on Niche

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Veterinary is a $55B/year business in the US. Despite relying extensively on credit card acceptance, there has been no veterinary-specific payment processor until now. (Source: American Pet Products Association)

Savings per vet hospital range from $2k to $10k or more per year.

Veterinary practices are not exactly a typical small business. While many other business owners can spend time on various cost-savings initiatives, vet hospitals are typically over-burdened by long hours and emotional subject matter. Even if a practice manager is in place, cost-savings review of vendors is perceived to be a time consuming activity. Plus we all know how busy practice managers are. Combine this with upwards of 85% of veterinary hospital sales being via credit, debit or "check" cards - and there is a substantial expense with no clear understanding of rates nor a trusted vendor relationship. This is where Veterinary Payments of America comes in.

But, can substantial money really be saved on credit card processing? Many vet hospitals seem to think that Visa/MasterCard/Discover rates are “standard” and that everyone pays the same. This could not be farther from the truth. It is correct that everyone pays the same “Interchange Fees” – which are the portion of credit card processing fees that goes directly to Visa/MasterCard/Discover’s issuing banks. However, this only represents some of the monthly credit card processing expense; the rest is essentially processor profit. How much vet hospitals pay in excess of Interchange fees is determined by what rate plan they have and what the specific rates are within that plan. Traditional “tiered” rate plans cost far more than new and more transparent “Interchange Plus” plans, the only type Veterinary Payments of America offers. Savings per vet hospital range from $2,000 to $20,000 – depending on current rates and size of the practice.

Many vet hospitals currently process credit card transactions via their local or national banking relationship. While it is logical to get a package of ‘banking services’ – this arrangement also has negative consequences when focused specifically on the payments processing portion. Not only are bank-direct credit card processing rates generally high, but they do not have the veterinary industry-specific knowledge nor professional high-end relationship management skills. In addition, Veterinary Payments of America has in-depth knowledge of practice management software, including the many integrated with X-Charge as a processor. While these integrated payments are convenient, they are also expensive, and have an eloquent work-around solution. Separating credit card processing from other banking services saves money while continuing to use the existing business checking accounts for deposit.

Time is precious and busy staff and owners do not want to spend it on non-productive tasks. For this reason, a free, no-obligation cost-savings review of current processing is offered. The vet hospital owner or practice manager faxes or emails a recent statement. A whip-smart team performs a full Excel analysis – and determines a bottom line savings amount, which is provided along with all the details. Once we provide the savings amount – the money is typically motivational - and the switch painless.

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