Membership plans are not insurance
Plans are typically structured as a direct agreement between the practice and patient. Some states regulate them; check your state's rules and have the agreement reviewed.
Recurring billing essentials
- Monthly vs. annual pricing and the effect on cash flow
- Automatic retry and patient notice on failed charges
- Clear cancellation and refund terms
- Membership status visible to the front desk
- Monthly report of active, past-due and cancelled members
Know the real economics
Count software fees, processing fees on each recurring charge, failed-payment losses and staff time. A plan that looks profitable on paper can lose money if 10% of charges fail every month.
Run the numbers
All fees on the statement.
All-in collections cost / month
$8,350.00
Card effective rate
2.60%
Broader cost ÷ card volume
3.34%
Software
$850.00
Staff time
$1,000.00
About $100,200 a year to get paid.
The card effective rate and the broader ratio are different measures — the broader one includes non-card work, so don't compare it to a processor's quoted rate. Uses only your numbers; no vendor pricing assumed.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a payments specialistCommon questions
Monthly or annual billing?
Annual brings cash up front and fewer failed charges; monthly lowers the barrier to joining. Many practices offer both.
What failed-charge rate is normal?
It varies. Track yours monthly and set up automatic retries and card-update reminders.