If your wellness business uses Mindbody or you’re considering the software, there’s a good chance you’ll be using the platform’s integrated payment processing capabilities.
But most Mindbody users don’t realize that they’re overpaying (by a lot) to accept credit cards.
I’ll break down everything you need to know about Mindbody’s payment processing options below, and show you how to save money while keeping your integrated setup through the software.
Understanding Mindbody’s Payment Processing Options
There are several different payment processors that integrate with Mindbody. Each one has different pricing structures and cost implications for your business:
- Mindbody Payments (powered by Stripe)
- TSYS
- Elavon
- Bluefin (Canada only)
- Paysafe (Canada only)
Mindbody also supports some region-specific processors for fitness businesses operating in Europe, APAC, UAE, and more, which you can find here. But for the purposes of this review, we’re going to focus on the US and Canada.
When consulting with clients using Mindbody, it’s clear that the majority of users never compare their options during the initial setup. They simply accept what they were sold on from day one (typically Mindbody Payments), and never question it after the onboarding process.
But this is an expensive mistake because not all of these processors are created equally.
The Problem With Mindbody Payments
Mindbody Payments is the software’s default payment solution. While it’s branded with the Mindbody name, it’s actually powered by Stripe on the backend.
Advertised rates start at:
- 2.99% + $0.30 per transaction for in-person taps, dips, and swipes
- 3.60% + $0.30 per transaction online and manually keyed cards
These rates are outrageously high.
It’s easy for businesses to be sold on this model because it’s simple and easy to understand. But flat-rate processing eats into your profits, and it’s among the most expensive ways to accept credit cards (for any business).
2.99% + $0.30 is way too much. But the majority of Mindbody users will pay 3.60% + $0.30 per transaction because payments are going through the app or web-based platform. This is one of the most expensive flat-rate pricing models on the market.
Why Flat-Rate Pricing Costs You More
Not all credit card transactions cost the same to process. When a customer pays for something with a basic debit card, the actual cost might be as low as 0.05% + $0.22. When they pay with a premium rewards card, it might be 2.10% + $0.10.
With flat-rate pricing through Mindbody Payments, you’re paying 3% or more for both of these scenarios.
That means your debit card markup for an online transaction is over 355 basis points (which is absurd). And even premium cards are marked up by 150 basis points.
For context, a normal markup for integrated processing is around 40-50 basis points (for well-negotiated accounts).
This means that at minimum, you’re paying over 1% extra on every single transaction. So if your business processed $2 million last year, you easily overpaid by $20,000 (and likely more).
We’re not talking about pennies here. That’s $100k in overpayments in just five years.
Get Interchange-Plus Pricing Instead
Despite what your Mindbody sales rep might tell you during the onboarding process, Stripe offers alternatives to flat-rate pricing (beyond what’s advertised).
Since Mindbody Payments is powered by Stripe, it means Mindbody also has access to interchange-plus pricing.
With interchange-plus, you pay the wholesale rate set by the card networks (like 1.90% + $0.10) plus a small markup to the processor (typically 0.40% to 0.50% with an integration, but we have Stripe clients paying as low as 0.09% + $0.08). You can read our Stripe review for more examples of rates we’ve negotiated for our clients.
What you may not realize is that your Mindbody sales rep has every incentive to get you on a higher-priced flat-rate plan because it’s more profitable for them — not you.
Mindbody still needs to pay Stripe on the back end, and they want a cut of the markup for themselves, too. So the higher your rate, the more money they can make.
Other Integrated Payment Processing Options for Mindbody
While Mindbody Payments is the most advertised and promoted payment acceptance option on Mindbody’s website (for the reasons mentioned above), you have other options to choose from.
The software supports third-party integrations from both TSYS and Elavon. Here’s what you need to know about each of these processors:
TSYS
TSYS is a major credit card processor, and we have several clients using TSYS integrated with Mindbody. Based on our experience, this is probably the most used processor for Mindbody users (outside of Mindbody Payments).
The good part about TSYS is that they typically offer interchange-plus pricing from day one, which is already a massive improvement from the Mindbody Payments flat-rate model.
But just because you’re using TSYS, it doesn’t automatically mean that you’re getting a good deal.
TSYS is owned by Global Payments. And like other Global subsidiaries, TSYS is known for:
- Excessive markups over the interchange rate
- Frequent rate increases
- Junk fees
- Assessment padding
So TSYS can be a step up from Mindbody Payments. But only if you’re hyper-vigilant in auditing your statements and always negotiating to get unnecessary fees removed from your account. If TSYS increases your rates, don’t just accept them. Keep pushing back to keep your terms the same.
Check out our TSYS review for more insights.
Elavon
Elavon is another major processor that integrates with Mindbody, and it’s probably the best option of the three (ahead of TSYS and Mindbody Payments powered by Stripe).
Like TSYS, Elavon will give you interchange-plus pricing. So your rates can be significantly better than the advertised flat-rate pricing from Stripe/Mindbody Payments.
Elavon is definitely more transparent than other processors we work with. We don’t find a ton of hidden bogus fees or junk charges on client statements (but they do pop up from time to time).
But they do try to increase rates once per year, which obviously isn’t ideal.
On the plus side, Elavon is receptive to negotiations and we’ve successfully negotiated better terms for all of our clients using this processor.
It’s also worth noting that according to the footer of Mindbody’s website, Mindbody Processing is a registered ISO of Elavon. This just means that Mindbody can resell Elavon’s processing services.
So you may not have access to Elavon’s rock bottom rates if you’re technically going through Mindbody as an intermediary. Similar to the Stripe setup, Mindbody having another layer in the processing flow just means that more players need to get paid, so your rates will be priced accordingly to ensure that both Elavon and Mindbody get their cut.
Read our Elavon review to learn more about this processor.
Mindbody Payment Processing in Canada
Canadian businesses using Mindbody have access to different payment processors than those based in the US.
In addition to Mindbody Payments powered by Stripe (which should be avoided if they’re pushing a flat-rate plan), you can also use Bluefin or Paysafe.
What’s interesting about these choices is that Bluefin is an ISO of Elavon. So Elavon would still be the actual processor handling your transactions on the backend if you go this route (meaning all of the same insights from above apply here).
I honestly don’t know why you can’t go directly to Elavon without Bluefin if you’re based in Canada. But it might be worth a try to cut out the middleman.
I’m assuming that Mindbody can’t resell Elavon’s services to Canadian businesses (at least based on the site’s payment documentation). Though that doesn’t explain why Bluefin is listed instead of just Elavon directly.
Paysafe is another option for Canadian Mindbody users, and it’s probably the most straightforward since it’s the only one that isn’t using a third party on the backend or an intermediary that needs a cut of your markup.
So you’ll likely get the cheapest rates from Paysafe (verify this with a quote).
How to Tell If You’re Overpaying on Payment Processing With Mindbody
Regardless of what processor you’re using or where you’re located, there’s a good chance you’re overpaying to accept credit cards via Mindbody if you haven’t audited your account since the initial setup.
Here are some signs that your account deserves closer attention:
- You’re on a flat-rate plan.
- You’re on an interchange-plus plan paying over 50 basis points.
- You have lots of extra fees on your statement that you don’t recognize.
- Your effective rate is higher than 2.5%.
- Your processor keeps raising your rates.
- You don’t have a detailed breakdown of assessment fees on your statements.
I strongly recommend that you research whatever processor is actually handling your payments on the backend.
For example, TSYS has some junk fees that they’re known for adding (like Transaction Network Access Fees and Settlement Funding Fees). You won’t find these on Elavon statements. Instead, you might find a Safe-T SMB Fee, which is a junk “security” fee that we often find on Elavon accounts (which can be removed and refunded).
Taking the time to review your processor will help you understand what exactly you should be looking for. And if you’re struggling with this, our team here at MCC can review your statements to identify inflated rates and bogus fees on your behalf.
Final Thoughts on Mindbody’s Payment Processing
There’s no disputing that Mindbody is an industry leader in the fitness and wellness software space. It’s trusted by 40,000+ businesses worldwide, and over 2.8 million users are actively using the app.
But accepting payments through Mindbody can be expensive if you’re not careful. Especially if you’re using Mindbody Payments.
Key takeaways that can help you save money:
- Flat-rate plans from Mindbody Payments (powered by Stripe) are the most expensive.
- You can go directly to TSYS if you’re based in the US to cut out the middleman.
- But TSYS has its own problems that you need to be careful of.
- Elavon is solid, but since Mindbody is an ISO reselling their services, rates are typically inflated.
- Regardless of who your processor is, you should NOT switch providers once you’ve already been onboarded.
- It’s cheaper to just get on an interchange-plus plan with your current provider, and negotiate lower rates.
Mindbody’s marketing materials make the payment acceptance seem straightforward. But as you can see, there’s a ton happening behind the scenes.
3.60% + $0.30 per transaction is outrageous. Don’t pay that.
Do your due diligence to negotiate the best possible terms, and contact our team if you need help with this process.