The Challenge
Dr. Amy L. operates a dental practice with three locations in the Dallas-Fort Worth metro area. The practice provides general dentistry, cosmetic procedures, orthodontics, and oral surgery, serving approximately 4,500 active patients. Annual card processing volume is approximately $1.2 million — a mix of co-pays, out-of-pocket procedure payments, and treatment plan balances.
The practice was on a tiered pricing plan from a legacy processor — a model that groups transactions into "qualified," "mid-qualified," and "non-qualified" tiers with different rates for each. The qualified rate was advertised at 1.69%, but in practice, over 60% of transactions were downgraded to mid-qualified (2.29%) or non-qualified (3.49%) tiers. The effective blended rate was approximately 2.75% — significantly higher than the advertised rate that sold the practice on the contract.
Beyond processing costs, the practice faced a revenue problem: treatment acceptance on procedures over $1,500 was low. Patients often declined recommended crowns, implants, or orthodontic work because they couldn't pay the full out-of-pocket amount at the time of service. The practice offered an informal in-house payment plan, but managing it was a burden on the office staff and collections on overdue balances consumed significant administrative time.
“Our old processor had us on a tiered plan that buried the real costs. PaySec's interchange passthrough was eye-opening — we immediately saw where the overcharges were.”
— Dr. Amy L., Owner, Multi-Location Dental Practice
The Solution
PaySec replaced the tiered pricing model with Network Offset Pricing, eliminating the qualified/mid-qualified/non-qualified tier structure entirely. Every transaction now passes through at actual interchange cost plus a transparent fixed margin. No more downgrades, no more hidden tier assignments.
PaySec integrated with the practice's existing dental practice management software (Dentrix) for seamless payment collection at checkout. The front desk workflow remained unchanged — staff continued processing payments through Dentrix, with PaySec handling the backend processing at significantly lower rates.
To address the treatment acceptance problem, PaySec configured a patient payment plan solution. For procedures over $500, the front desk can offer patients the option to split the balance into 3, 6, or 12 monthly payments charged to their card on file. The practice receives the full procedure amount upfront (minus processing fees), and PaySec manages the recurring charges, payment reminders, and failed payment retries. The practice bears no collection risk on approved payment plans.
The payment plan enrollment happens at the front desk during checkout. The patient's card is tokenized, the payment schedule is configured, and the first charge is processed immediately. Subsequent charges run automatically with no staff intervention required.
“The treatment plan financing integration was a game-changer. Patients can split large procedures into monthly payments, and we get funded upfront. Collections are no longer our problem.”
— Dr. Amy L., Owner, Multi-Location Dental Practice
The Results
The switch to Network Offset Pricing reduced the practice's effective processing rate from 2.75% to approximately 1.84% — a 33% reduction in total processing costs. Over the first 12 months, the practice saved approximately $16,500 in processing fees.
The elimination of tiered pricing was the primary savings driver. Under the old model, card-not-present transactions (payment plans, phone payments) were automatically downgraded to the non-qualified tier at 3.49%. Under Network Offset Pricing, those same transactions process at their actual interchange rate — typically 1.65% to 1.80% for standard consumer credit cards — plus PaySec's fixed margin.
The patient payment plan feature had an even larger impact on revenue. Treatment acceptance for procedures over $1,500 increased by 22% in the first year. Patients who would have declined or deferred expensive procedures are now accepting treatment when offered a manageable monthly payment option. The practice estimates this drove an additional $105,000 in procedure revenue that would have otherwise been lost or delayed.
Administrative time spent on payment collections dropped by approximately 10 hours per week across the three locations. The office staff no longer manages in-house payment plans, chases overdue balances, or handles manual recurring charges. PaySec's automated billing handles all of it.
“Between the processing savings and the improvement in treatment acceptance rates, switching to PaySec added over $100K to our top line in the first year. The ROI was immediate.”
— Dr. Amy L., Owner, Multi-Location Dental Practice
Disclaimer: Results are based on this merchant's specific transaction volume, card mix, and pricing structure. Individual savings vary. The 33% fee reduction reflects the difference between the merchant's prior tiered effective rate and their PaySec effective rate over the first 12 months. Treatment acceptance improvements depend on patient demographics, procedure mix, and payment plan terms. PaySec does not guarantee specific savings percentages or revenue increases.