Navigating Surcharging: A Guide for Veterinary Practices

Accepting credit card payments is essential for running a modern business. Incorporating newer payment methods, meeting consumer expectations, and managing the costs associated with card transactions are important steps helping facilitate a smooth journey—from patient treatment to transaction.

Let’s explore the changing landscape of payment types and what veterinary practices can (and can’t) do to manage card transaction fees effectively.

Gone are the days when cash was king. Today, credit cards and digital wallets dominate payment transactions.

• About 50% of Gen Z already owns a credit card, according to IntelliPay.¹
• Nearly 9 out of 10 consumers use digital wallets, and 30% use three or more according to a recent McKinsey study.²

To meet these growing expectations, your clinic should consider adopting a payment system that accommodates multiple payment types, to help you serve every client and patient effectively.

How can you help your clinic’s bottom line adapt to the cost of keeping up? Enter the buzzword: surcharging.

Let’s face it. Many businesses now pass on a portion—or even all—of the fees associated with credit card and digital wallet transactions to consumers. If you choose to implement surcharging, rest assured you won’t be the first veterinary clinic to do so.

However, surcharging isn’t as simple as passing on the transaction fee. There’s a right way—and a legal way—to incorporate this practice.

Both state laws and credit card brand regulations govern surcharging practices.

State-Level Laws: Surcharging rules vary by state. Some states don’t allow merchants (including veterinary clinics) to pass on transaction fees, while others impose specific limitations.

Credit Card Brand Regulations: In addition to state laws, credit card companies may have their own requirements for surcharging.

It’s best practice to review your state laws and check the policies of individual credit card brands to ensure compliance.

Both state laws and credit card brand regulations govern surcharging practices.

State-Level Laws: Surcharging rules vary by state. Some states don’t allow merchants (including veterinary clinics) to pass on transaction fees, while others impose specific limitations.

Credit Card Brand Regulations: In addition to state laws, credit card companies may have their own requirements for surcharging.

It’s best practice to review your state laws and check the policies of individual credit card brands to ensure compliance.

1. Erling, Dale. 2024. “Credit Card Payments: 5 Facts Merchants Need to Know.” IntelliPay. August 7, 2024. https://intellipay.com/credit-card-payments-5-facts-merchants-need-to-know/. Accessed January 17, 2025.

2. Moy, Richard. 2024. “What Is a Digital Wallet and How Does It Work?” Ramp. April2024. https://ramp.com/blog/what-is-a-digital-wallet. Accessed January 17, 2025