--- title: "The Acceleration of Surcharging: A New Reality for Healthcare Payments" description: Surcharging is accelerating. J.D. Power finds 35% of U.S. small businesses now surcharge credit cards. Healthcare is moving faster. image: https://finmedpartners.com/hubfs/Pharmacist%20giving%20credit%20card%20to%20costumer%20at%20pharmacy.jpeg --- [![FinMed Partners-1](https://finmedpartners.com/hs-fs/hubfs/FinMed%20Partners-1.png?width=200&height=65&name=FinMed%20Partners-1.png "FinMed Partners-1")](https://finmedpartners.com/) - [About](https://finmedpartners.com/about) - [Services](https://finmedpartners.com/services) - [Team](https://finmedpartners.com/team) - [Insights](https://finmedpartners.com/insights) - [Blog](https://finmedpartners.com/blog) - [HFF 2026](https://finmedpartners.com/hff) [CONTACT US](https://finmedpartners.com/contact-us) ## Search # The Acceleration of Surcharging: A New Reality for Healthcare Payments ![](https://finmedpartners.com/hubfs/Pharmacist%20giving%20credit%20card%20to%20costumer%20at%20pharmacy.jpeg) ![ David Stievater, Partner](https://finmedpartners.com/hubfs/David%20S%20-%20Sep%202023.jpeg) [David Stievater, Partner](https://finmedpartners.com/blog/author/david-stievater-partner) May 21, 2026 Share : [mailto:?subject=Check+out+this+blog+post%3A+The+Acceleration+of+Surcharging%3A+A+New+Reality+for+Healthcare+Payments&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fthe-acceleration-of-surcharging-a-new-reality-for-healthcare-payments](mailto:?subject=Check+out+this+blog+post%3A+The+Acceleration+of+Surcharging%3A+A+New+Reality+for+Healthcare+Payments&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fthe-acceleration-of-surcharging-a-new-reality-for-healthcare-payments) Credit card surcharging is the practice of adding a small fee - typically 1-4% - when a customer pays with a credit card, to offset the interchange merchants pay networks like Visa and Mastercard. Once banned by card brand rules, surcharging became broadly permissible after a 2013 antitrust settlement and is now legal in 47 states; only Connecticut, Massachusetts, and Puerto Rico still prohibit it. It's important to note that surcharging applies only to *credit* cards - federal law forbids it on debit and prepaid transactions, though many small merchants do it anyway due to thin enforcement. **From rare to routine** Surcharging is accelerating. J.D. Power finds 35% of U.S. small businesses now surcharge credit cards. Healthcare is moving faster: our 2026 ProviderPay survey shows 45% of independent medical and dental practices already surcharge, with veterinary clinics at 55%. Counting office managers who say they may surcharge in the future, the trajectory points to 85–90% of independent healthcare providers passing along card fees. The drivers are familiar - flat payer reimbursement, interchange of 1.5–3.5% per swipe, and patient responsibility now 20-30%+ of practice revenue. Absorbing those fees is hard to sustain for practices. **The controversy** Not surprisingly, there is pushback on surcharging - including in healthcare. Patients facing record out-of-pocket costs especially those on high-deductible plans may view a 3% fee on a $400 visit as making healthcare that much more unaffordable – and one more point eroding trust in the system. Under the last administration, the CFPB, HHS, and Treasury opened inquiries into medical payment practices. Consumers vote with their wallets: J.D. Power reports 81% of cardholders who encountered a surcharge later switched payment methods to avoid it. Providers counter that interchange has quietly become one of their largest operating costs after labor and rent, and that a transparent surcharge is more honest than burying it in higher prices. **What's next** For one, regulation. Colorado has capped surcharges at 2%, New York requires they match actual processing cost, and Illinois’ Interchange Fee Prohibition Act - the first of its kind - takes effect July 1, 2026 unless legal challenges cause a delay. Walmart and major retail groups are challenging the proposed $200B Visa-Mastercard settlement, demanding deeper interchange reform. Stax Payments data shows 22% of credit transactions migrate to debit or ACH once a surcharge appears, threatening bank card revenue while giving acquirers reason to encourage the practice. For healthcare, three forces will dominate: tighter state disclosure rules, patient migration to debit and ACH, and bank-led merchant education. And adoption is uneven. While vet practices currently surcharge more often than dental and medical practices (55% vs. 45%, see [here](https://finmedpartners.com/blog/top-7-healthcare-trends-in-2026?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-_Maid3bKH5EswYSblnmjHAdYM6StwDJogvcvzb_bwYZxIkWKTCnEuruVY8QpvColBEiFRU)), we expect dental offices to catch up fast. Like it or not, surcharging is taking its place as part of the new economics of healthcare payments. TAGS [#Patient Payments/ Engagement](https://finmedpartners.com/blog/tag/patient-payments-engagement) [#Payment Infrastructure/ Platform](https://finmedpartners.com/blog/tag/payment-infrastructure-platform) [#Healthcare Provider](https://finmedpartners.com/blog/tag/healthcare-provider) [#Payment Trends](https://finmedpartners.com/blog/tag/payment-trends) Share : [mailto:?subject=Check+out+this+blog+post%3A+The+Acceleration+of+Surcharging%3A+A+New+Reality+for+Healthcare+Payments&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fthe-acceleration-of-surcharging-a-new-reality-for-healthcare-payments](mailto:?subject=Check+out+this+blog+post%3A+The+Acceleration+of+Surcharging%3A+A+New+Reality+for+Healthcare+Payments&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fthe-acceleration-of-surcharging-a-new-reality-for-healthcare-payments) ## Our Blog [View All](https://finmedpartners.com/blog) [![](https://finmedpartners.com/hs-fs/hubfs/Tyler%20Stafford%20cropped.png?width=352&name=Tyler%20Stafford%20cropped.png)](https://finmedpartners.com/blog/ceo-chat-panacea-financial) ### [CEO Chat: Panacea Financial](https://finmedpartners.com/blog/ceo-chat-panacea-financial) ![Tyler Stafford, CEO & Co-Founder](https://finmedpartners.com/hubfs/Tyler%20Stafford%20square.png) [Tyler Stafford, CEO & Co-Founder](https://finmedpartners.com/blog/author/tyler-stafford-ceo-co-founder) We founded Panacea to build a financial platform designed specifically for doctors — from medical school through residency, practice ownership, and beyond. [![](https://finmedpartners.com/hs-fs/hubfs/Instinct%20Pay.png?width=352&name=Instinct%20Pay.png)](https://finmedpartners.com/blog/providers-show-strong-interest-in-embedded-financial-services) ### [Providers show strong interest in embedded financial services](https://finmedpartners.com/blog/providers-show-strong-interest-in-embedded-financial-services) ![Henri Cattier, Partner](https://finmedpartners.com/hubfs/henri-cattier.jpeg) [Henri Cattier, Partner](https://finmedpartners.com/blog/author/henri-cattier-partner) Healthcare providers are signaling they want payment processing and the broader universe of embedded finance built directly into their practice software. [![](https://finmedpartners.com/hs-fs/hubfs/Zelis%20blog%20image.png?width=352&name=Zelis%20blog%20image.png)](https://finmedpartners.com/blog/ceo-chat-zelis) ### [CEO Chat: Zelis](https://finmedpartners.com/blog/ceo-chat-zelis) ![Dylan Papa, SVP & GM, Commercial Growth & Partnerships](https://finmedpartners.com/hubfs/Dylan%20Papa%20Headshot%20avatar.jpeg) [Dylan Papa, SVP & GM, Commercial Growth & Partnerships](https://finmedpartners.com/blog/author/dylan-papa-svp-commercial-growth) Zelis was founded to solve a core challenge in healthcare: a fragmented financial experience that is difficult to navigate. [![](https://finmedpartners.com/hs-fs/hubfs/DML%20Square%202025-1.png?width=352&name=DML%20Square%202025-1.png)](https://finmedpartners.com/blog/ceo-chat-boost-payment-solutions) ### [CEO Chat: Boost Payment Solutions](https://finmedpartners.com/blog/ceo-chat-boost-payment-solutions) ![Dean M. Leavitt, Founder & CEO](https://finmedpartners.com/hubfs/DML%20Square%202025%20square.jpg) [Dean M. Leavitt, Founder & CEO](https://finmedpartners.com/blog/author/dean-m-leavitt-founder-ceo) Boost was founded to address inefficiencies in B2B payments where legacy methods create friction, delay and unnecessary cost. [![](https://finmedpartners.com/hs-fs/hubfs/DSC00909.jpeg?width=352&name=DSC00909.jpeg)](https://finmedpartners.com/blog/ceo-chat-inbox-health) ### [CEO Chat: Inbox Health](https://finmedpartners.com/blog/ceo-chat-inbox-health) ![Blake Walker, Co-Founder, CEO](https://finmedpartners.com/hubfs/DSC00909%20copy.jpeg) [Blake Walker, Co-Founder, CEO](https://finmedpartners.com/blog/author/blake-walker-co-founder-ceo) We founded Inbox Health to approach patient billing as a communication platform rather than just a payment problem. # The intersection of healthcare and payments We are keeping tabs on what is happening in healthcare payments. 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