CareCredit Merchant Fee Calculator
Calculate exact merchant discount deductions (5.90% to 14.90%) for dental, veterinary, cosmetic surgery, and medical practices across Synchrony CareCredit promotional financing plans.
CareCredit charges healthcare practices an upfront merchant discount fee ranging from 5.90% (6-month plan), 9.90%–10.90% (12-month plan), 12.90% (18-month plan), to 14.90% (24-month plan). On a $5,000 dental implant or veterinary surgery on a 12-month promotion, CareCredit deducts $545.00, depositing $4,455.00 into the practice bank account within 2 business days under complete non-recourse default protection.
Net practice deposit paid within 2 days with zero patient default risk.
Fee Wealth Leakage Radar & Profit Drag
Multi-Rail Arbitrage ("Switch & Save")
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Pass Fee to Client (Legal Surcharge Engine) Calculate zero-shortfall compliant markup & legal surcharge limits
• United States: Visa & Mastercard cap credit card surcharges at 3.00% (effective April 2023). Surcharging debit or prepaid cards is strictly illegal under federal operating rules.
• UK & European Union: Surcharging consumer debit and credit cards is prohibited under PSD2. B2B / corporate card surcharges remain permitted.
• Australia: Governed by RBA; surcharging is legally restricted strictly to the merchant's actual cost of card acceptance.
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Bookkeeping Journal Entry
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📑 Healthcare Practice Double-Entry Accounting Journal
Bookkeeping entry splitting gross clinical patient billing, CareCredit discount fees, and net practice bank receipts.
| Account Code & Name | Type | Debit ($ USD) | Credit ($ USD) |
|---|---|---|---|
| 1010 Operating Bank Account (Deposit) | Asset | $4,455.00 | - |
| 6052 Patient Financing Discount Expense (CareCredit) | Expense | $545.00 | - |
| 4010 Clinical Patient Revenue | Revenue | - | $5,000.00 |
CareCredit Merchant Discount Fee Benchmark Matrix (2026)
Full cost comparison across Standard (1.9%), 6-Mo (5.9%), 12-Mo (10.9%), and 24-Mo (14.9%) plans.
| Treatment Plan | Card (2.9%) | 6 Months (5.9%) | 12 Months (10.9%) | 24 Months (14.9%) | 12-Mo Practice Net |
|---|---|---|---|---|---|
| $500 Routine Care | $14.80 | $29.50 | $54.50 | $74.50 | $445.50 |
| $1,500 Crown / Endodontics | $43.80 | $88.50 | $163.50 | $223.50 | $1336.50 |
| $3,000 Vet Orthopedic | $87.30 | $177.00 | $327.00 | $447.00 | $2673.00 |
| $5,000 Dental Implant | $145.30 | $295.00 | $545.00 | $745.00 | $4455.00 |
| $8,000 Full Orthodontics | $232.30 | $472.00 | $872.00 | $1192.00 | $7128.00 |
| $12,000 Cosmetic / LASIK | $348.30 | $708.00 | $1308.00 | $1788.00 | $10692.00 |
| $20,000 Full Mouth Rehab | $580.30 | $1180.00 | $2180.00 | $2980.00 | $17820.00 |
1. Practice Economics: Why Healthcare Providers Subsidize 10.9% Fees
Surrendering nearly 11% to 15% of clinical gross revenue appears irrational compared to 2.9% merchant processing. However, clinical financial consultants evaluate CareCredit as a patient acquisition and case acceptance driver:
Case Conversion Velocity
In elective and semi-elective dentistry and veterinary surgery, 60% of patients reject proposed treatment plans due to cash flow constraints. Absorbing a 10.9% discount fee to capture an $8,000 procedure produces $7,128.00 in gross margin that would otherwise be completely lost.
Zero Recourse / Zero Bad Debt
When practices attempt internal in-house financing (e.g. $500/month for 10 months), patient default rates average 18% to 24%, with collection agency fees eating 33% of recovered debts. CareCredit guarantees 100% funding on Day 2 with zero practice bad debt liability.
2. Legal Compliance: Contractual Anti-Surcharge Clauses
Practices frequently ask if they can charge a patient an extra 10.9% if they choose CareCredit. Doing so is a breach of the CareCredit Provider Agreement. Synchrony Bank strictly prohibits providers from passing CareCredit merchant fees to patients, dual-pricing services, or penalizing cardholders. Providers violating this rule risk immediate account termination and recoupment of paid commissions.
Frequently Asked Questions: CareCredit Merchant Fees
1. What are CareCredit's merchant discount fees in 2026? ↓
CareCredit (Synchrony Bank) charges healthcare practices a merchant discount rate (MDR) based on the financing promotion selected by the patient: Non-promotional standard charges are typically 1.90% + $0.30; 6-month deferred interest plans cost practices approximately 5.90%; 12-month plans cost ~9.90% to 10.90%; 18-month plans cost ~12.90%; and 24-month promotional financing costs approximately 14.90% of the gross patient invoice.
2. How does CareCredit promotional financing work for patients vs practices? ↓
For patients, CareCredit offers 'No Interest if Paid in Full' within promotional windows (6, 12, 18, 24 months). However, the interest is not actually free; the provider (dentist, vet, surgeon) subsidizes the credit risk upfront by surrendering 5.9% to 14.9% of the procedure revenue to Synchrony Bank upon settlement.
3. Does the healthcare practice absorb default risk if the patient fails to pay CareCredit? ↓
No. CareCredit is a non-recourse patient financing program. Synchrony Bank funds the practice within two business days. If the patient defaults, files bankruptcy, or misses payments, the healthcare provider keeps 100% of their funded payout, and Synchrony absorbs the credit loss.
4. Can healthcare providers legally surcharge CareCredit fees to patients? ↓
Under standard CareCredit Provider Operating Regulations, participating practices are contractually prohibited from adding a surcharge or billing patients an extra fee specifically for using CareCredit. Providers must charge CareCredit cardholders the same cash fees as other patients for identical clinical procedures.
5. How do CareCredit merchant fees compare to standard credit cards? ↓
Standard Visa or Mastercard credit cards cost a dental or medical practice 2.5% to 3.0% in processing fees. CareCredit 12-month financing costs approximately 10.90%, which is nearly four times higher. On a $6,000 dental implant case, standard credit cards cost $174.00, whereas CareCredit deducts $654.00 (a $480.00 difference).
6. Why do dental and veterinary practices accept CareCredit despite high fees? ↓
CareCredit dramatically increases high-ticket treatment acceptance rates. When patients cannot afford out-of-pocket costs for elective dental implants, emergency veterinary surgery, or cosmetic procedures, offering monthly financing converts unaccepted treatment plans into immediate cash flow without practice billing collections.
7. What is the gross-up formula to determine price thresholds under CareCredit? ↓
To receive an exact net target payout $T after CareCredit deducts discount rate $r, calculate: Gross Price = Target Net / (1 - r). For example, to net $4,000.00 on a 12-month plan (10.90% fee), the required clinical procedure fee is $4,000.00 / 0.891 = $4,489.34.
8. What are the alternatives to CareCredit for medical and dental practices? ↓
Key alternatives include Scratchpay (popular in veterinary medicine with 5%–9% practice fees), Sunbit (flexible dental/medical financing with higher patient approval rates), Cherry Technologies, and in-house dental membership subscription plans.
9. How does CareCredit handle patient refunds when treatment is cancelled? ↓
When a practice issues a refund to a CareCredit cardholder, CareCredit credits back the proportional merchant discount fee that was originally charged. Synchrony debits the net refund from the practice's bank account.
10. Are CareCredit merchant discount fees tax-deductible for practices? ↓
Yes. CareCredit merchant discount fees are 100% tax-deductible ordinary and necessary business expenses under IRS regulations, categorized under Merchant Processing Fees or Bank Financing Charges.
11. What is the minimum transaction amount eligible for CareCredit promotional plans? ↓
Synchrony Bank generally enforces a $200 minimum transaction threshold for 6-month promotional financing, $300 for 12-month plans, $500 for 18-month plans, and $1,000 for 24-month promotional terms.
12. How should CareCredit settlements be recorded in medical double-entry bookkeeping? ↓
Debit Operating Cash (Asset 1010) for the net deposit from Synchrony Bank, debit Patient Financing Discount Fee Expense (Expense 6052) for CareCredit's cut, and credit Gross Medical/Dental Patient Revenue (Revenue 4010) for the full procedure fee.
Verified Methodology & Primary Legal Sources 2026 Audit
All calculation logic, statutory caps, and tax models are cross-referenced with official merchant agreements.