To offset $75,000 per year in credit card processing fees, Town and Country Veterinary Clinic in Russellville, Ark., adds a 3 percent surcharge when clients use credit cards. A third of small businesses charge consumers extra when they pay with credit cards,1 but should your veterinary hospital? GettyImages/CarlosDuarte Why businesses add surcharges Recoup processing fees Surcharges are primarily used to recover interchange fees, which companies pay to credit card institutions and banks on every transaction. Interchange fees are typically 1.9 percent to 5 percent of the total transaction.2 Protect profits Once considered a cost of doing business, credit card processing fees can take a bite out of profits. Small animal practices average a 10 percent to 15 percent profit margin, while emergency and specialty hospitals can achieve 15 percent to 25 percent profit margins.3 Credit cards and third-party financing comprise 80 percent to 85 percent of practice revenue.4 Surcharges let practices pass processing costs on to pet owners rather than absorbing them. Cover rising costs U.S. veterinary care costs rose more than 60 percent in the last decade.5 Equipment, technology, workforce shortages, more expensive medications and medical supplies, operational costs, educational debt, and corporate consolidation are contributing factors.6 Know surcharging rules Surcharging is not as simple as passing on transaction fees—federal and state laws and credit card merchant agreements govern surcharge practices. Federal and state laws Federal law has a 4 percent maximum allowable surcharge on credit card transactions.7 Do not surcharge more than the cost of your processing fee. You cannot use a surcharge to make a profit. Debit card surcharge is illegal in all 50 states. Surcharges are not applicable to prepaid cards. State laws in California, Connecticut, Maine, and Massachusetts make it illegal to surcharge credit card transactions. Look up your state’s law at https://merchantcostconsulting.com/lower-credit-card-processing-fees/credit-card-surcharge-laws-by-state/. Merchant rules Visa, MasterCard, American Express, and other major credit card brands set rules and regulations for merchants to follow on surcharges. CareCredit merchants are not allowed to add surcharges to CareCredit transactions. Most major credit card institutions require written notice of your intent to begin surcharging your clients.8 Notify your clients Be upfront and transparent about surcharges. Display surcharge policies near payment terminals. Post your financial policy on your website. Include the policy on new client and online forms. Ralston Vet, a 10-doctor practice in Ralston, Neb., began surcharging two years ago and coached staff members before rolling out the policy. They sent emails to clients, posted the financial policy on their website, and have in-clinic signs. The policy states: “We recommend paying with cash, check, or a PIN debit card to avoid an electronic fee on credit cards. An electronic fee of 3 percent is charged and collected by our card processing services on all credit card transactions. This fee is not charged on payments made by cash, check, CareCredit, or debit cards when using your PIN at the time of payment.” Lori Wilwerding, LVT, says less than 10 percent of clients questioned the surcharge, and most older clients already paid with checks. She says the practice has not seen increases in bounced checks. Signs are posted everywhere at Town and Country Veterinary Clinic—on exam doors, the back of front desk computer monitors that face clients, and a check-writing pad on the front counter surface, explains Dale Kaufman, DVM. The mixed animal practice has been surcharging credit cards for a year. List surcharges on invoices You cannot lump the surcharge into the total cost of services. A surcharge should be a separate line item on your invoice with a clear description. The “surcharge” label reinforces transparency and lets clients know they are being charged an additional fee for using a credit card. A separate line item also lets you reconcile and track surcharges. Potential surcharging backlash Concerned about potential effects on clients’ trust, Lone Tree Animal Medical Center in Omaha, Neb., decided not to implement surcharging. “We switched to another credit card processor for better rates,” explains Joel Gunderson, practice manager. “Our new processor integrates with our PIMS for additional accuracy and efficiency.” A J.D. Powers survey found 41 percent of credit cardholders decided not to use a card payment when a business had a surcharge.1 You may see an increase in cash, check, debit card, and third-party payments. “A side effect of surcharging is more cash,” says Dr. Kaufman. While he trusts employees, Town and Country Veterinary Clinic has common-sense safeguards to prevent embezzlement. Two employees complete the balance sheet each day, and the office manager makes daily bank deposits of cash and checks. Surcharging could limit revenue. Because people carry less cash these days, you risk losing business if clients don’t have enough cash or checkbooks with them. The average American carries $67 in cash—far less than typical veterinary bills.9 The AVMA reports dog owners spent $580 while cat owners averaged $433 for veterinary care in 2024.10 How many clients have $580 in their wallets? GettyImages/Simonkr As an alternative to surcharging, some practices offer cash discounts, negotiate rates with processors, and add fee-free digital wallet payments, such as Apple Pay and Google Pay, which may appeal to millennials, as the largest segment of veterinary clients. Deciding to implement a surcharge for credit cardholders is a delicate dance. Ultimately, you must communicate value for services before, during, and after care is delivered. Perception of value can make or break client relationships. With 43 years in practice, Dr. Kaufman takes pride in the trust he’s built with clients. When asked what advice he would share with practice owners considering surcharging, Dr. Kaufman says, “Just do it.” Wendy Myers, CVJ, knows the right words will lead clients to accept your medical advice, driving patient and practice health. As founder of Communication Solutions for Veterinarians, she teaches practical skills through online courses, conferences, and onsite consulting. Myers' experience as a partner in a specialty and emergency hospital helped her understand issues that owners and managers face. Learn how she can train your team at csvetscourses.com. References Rossman T. Sick of surcharges? Sadly, they’re just getting started. Bankrate. https://www.bankrate.com/credit-cards/news/sick-of-surcharges-they-are-just-getting-started/. Accessed Aug. 26, 2025. Bast J. Veterinary Credit Card Processing and Fees: What to Consider. Zoetis. https://www.zoetisus.com/petcare/blog/veterinary-credit-card-fees-what-to-consider/. Accessed Aug. 26, 2025. How to Know What Your Vet Practice Is Worth. Total Practice Solutions Group. https://www.totalpracticesolutionsgroup.com/how-to-know-what-your-vet-practice-is-worth/. Accessed Aug. 26, 2025. McFerson T. Don’t get fleeced on veterinary client payments. DVM360. https://www.dvm360.com/view/dont-get-fleeced-veterinary-client-payments. Accessed Aug. 26, 2025. Ramirez M. Pet health care prices are so high that most owners are skipping treatments. USA Today. https://www.usatoday.com/story/news/nation/2025/05/31/vet-costs-owners-decline-pet-care/83161751007/. Accessed Aug. 26, 2025. Petras G. Vet visit price shock: If you feel like you’re paying more for pet care, you’re not alone. USA Today. https://www.usatoday.com/story/graphics/2024/09/30/vist-visit-cost-going-up/75366430007/. Accessed Aug. 26, 2025. Rej M. Credit Card Surcharge Laws by State (Updated for 2025). https://merchantcostconsulting.com/lower-credit-card-processing-fees/credit-card-surcharge-laws-by-state/. Accessed Aug. 26, 2025. Jhean G. Credit Card Surcharge Laws by State Explained. LawPay. https://www.lawpay.com/about/blog/credit-card-surcharge-rules/. Accessed Aug. 26, 2025. Winters M. How much cash should you keep in your wallet, according to money experts. CNBC. https://www.cnbc.com/2025/05/25/how-much-cash-to-keep-in-your-wallet-according-to-money-experts.html. Accessed Aug. 26, 2025. Larkin M. Pet Population Continues to Increase While Pet Spending Declines. AVMA News. https://www.avma.org/news/pet-population-continues-increase-while-pet-spending-declines#. Accessed Aug. 26, 2025.
