While it can certainly be a hot topic for debate, healthcare isn’t free—at least, not in the United States. Outside of insurance, healthcare providers have to collect payment directly from patients, often for services that come with a high price tag.
With that in mind, credit cards are among the most common ways people pay for healthcare costs. Research by U.S. Bank shows that consumers rank contactless debit and credit cards as their top two desired methods for paying for medical bills.
All of this puts payment processing squarely in the spotlight for healthcare providers. When a large share of patient payments comes through cards, processing fees stop being a minor line item and start having a real impact on margins.
That’s why more healthcare organizations should evaluate how they accept payments and explore non-traditional pricing models, such as membership-based payment processing.
What is membership-style pricing in payment processing?
Membership-style pricing, such as the one offered by Stax, is a payment processing model in which businesses pay a flat monthly fee and access wholesale interchange rates, rather than a percentage markup on every transaction. Instead of fees increasing as transaction sizes grow, costs stay predictable.
For healthcare providers that process high-value or recurring payments, this approach can significantly reduce total processing expenses while making monthly costs easier to forecast.
Here’s how membership-style pricing compares to more traditional payment processing models like interchange-plus, blended, and tiered pricing.
|
Pricing model |
How it works |
Cost transparency |
Impact on high-dollar healthcare transactions |
Cost predictability |
|
Membership-style pricing |
Providers pay a flat monthly fee and pass through wholesale interchange rates with no percentage markup |
High. Fees are straightforward and easy to understand |
Minimal impact. Larger transactions don’t increase processor markup |
High. Monthly costs are stable and easier to forecast |
|
Interchange-plus |
Interchange fees plus a processor markup on every transaction |
Moderate. Interchange is clear, but markups vary by provider |
Moderate impact. Markups scale with transaction size |
Moderate. Costs fluctuate with volume |
|
Blended pricing |
Multiple interchange categories are bundled into a single rate |
Low. True costs are masked within the blended rate |
High impact. Providers often overpay on qualified transactions |
Low. Hard to predict true processing costs |
|
Tiered pricing |
Transactions are grouped into qualified, mid-qualified, and non-qualified tiers |
Low. Tier definitions and costs are often unclear |
High impact. Many healthcare transactions fall into higher-cost tiers |
Low. Monthly costs can vary significantly |
How membership-style pricing can help healthcare organizations
Membership-style pricing gives healthcare organizations more control over costs without sacrificing flexibility or patient experience.
Consider the following.
Lower processing costs for high-value transactions
Healthcare payments are often larger than the average retail purchase. With traditional pricing models, that means higher fees every time a patient pays with a card. Membership-style pricing removes percentage markups, so processing costs don’t balloon as transaction sizes increase. Over time, this can lead to meaningful savings, especially for providers that regularly process large or recurring patient payments.
More predictable expenses for better financial planning
Budgeting is hard enough in healthcare. Unpredictable payment fees only add to the challenge. With a flat monthly membership fee, processing costs become far easier to forecast. Finance teams can plan with confidence, knowing that payment fees won’t spike unexpectedly during busy months or periods of higher patient volume.
A better fit for recurring and membership-based care models
Many healthcare organizations are moving toward recurring billing, whether through direct primary care, wellness programs, therapy plans, or payment plans. Membership-style pricing supports these models without compounding fees on every recurring charge. That means providers keep more revenue while offering patients consistent, flexible payment options.
Less time spent managing billing and reconciliation
Traditional pricing models often come with complex statements and unclear fees. Membership-style pricing simplifies reporting, making it easier to reconcile transactions and understand true costs. For healthcare teams, that translates to less time spent untangling billing issues and more time focused on patient care and operations.
Flexibility to support modern patient payment preferences
Patients expect to pay the way they pay everywhere else. Membership-style pricing supports card payments and modern digital options without penalizing providers for offering convenience. Healthcare organizations can meet patient expectations while keeping processing costs under control.
Final words
Payment processing shouldn’t quietly erode already-tight healthcare margins. For organizations that rely on card payments, membership-style pricing offers a simpler, more predictable way to control costs as volumes grow.
Because membership-pricing eliminates high markups and offers transparency into payment processing costs, healthcare providers can keep more revenue and offer a modern payment experience that patients expect.
