by Matt Rej
DaySmart Vet is a versatile veterinary practice management software. It’s a cloud-based platform, making it easy to set up, manage, and scale, regardless of your practice size.
And whether you’re evaluating the software as a new customer or you’re an existing user, it’s clear that DaySmart Vet pushes its integrated payment processing capabilities as a top feature.
In fact, they even give you a discounted price on your monthly software subscription if you bundle integrated credit card processing with your plan (because they’ll make even more money by taking a piece of your merchant fees).
But there’s more to this than meets the eye. Read on for my insider take on what’s actually happening behind the scenes when you get integrated processing from DaySmart Vet, and how to secure the best possible rates.
DaySmart Vet Integrates With CardConnect For Payment Processing
First and foremost, you need to understand that DaySmart Vet is NOT a payment processor or merchant services provider. So if you decide to move forward with integrated processing, you’ll be directed to get a merchant account from CardConnect.
- DaySmart Vet is the software provider.
- CardConnect is your payment processor.
- CardPointe is the gateway, virtual terminal, and merchant portal that’s offered by CardConnect.
DaySmart Vet just facilitates the integration. They set up their software in a way that CardConnect/CardPointe can connect through an API, allowing your payment ecosystem to integrate with the practice management features.
But they don’t actually have anything to do with processing your transactions.
All of the credit card processing is handled by CardConnect.
Integrated Processing is Optional in DaySmart Vet
While integrated processing definitely has its perks, it’s definitely not a requirement when you’re setting up your DaySmart Vet account.
The option to bundle integrated payment processing with your subscription is selected by default when you’re signing up and assessing pricing options. But if your vet practice already has a payment processor (that’s not CardConnect), you’re probably better off keeping your current provider.
Switching processors can be messy, and it’s likely going to be more expensive for you to use the integrated CardConnect setup.
You can still access all of the features that DaySmart Vet has to offer — scheduling, client communication, organizing medical records, etc. — but your payment processing will just be kept separate. No big deal.
Only Having One Integrated Processor Increases Your Costs
CardConnect is a solid processor. And CardPointe is one of the best and well-known gateway solutions on the market, and it’s historically worked exceptionally well when used to connect with third-party software like DaySmart Vet.
That said, only having one option to choose from works against you when it comes to getting competitive processing rates.
CardConnect knows that if you want integrated processing, they’re the only game in town. This gives them far less incentive to offer you a good deal because they’ve monopolized the setup. You can’t shop around or get a better price from another processor because those processors don’t integrate with DaySmart Vet.
Furthermore, CardConnect needs to give something back to DaySmart Vet for supporting the API and integration.
Why do you think DaySmart Vet incentivizes you to get integrated processing with discounts on your monthly software subscription? It’s more expensive for them to support the API and everything else that involves integrated payments with their interface.
In these types of setups, it’s extremely common for the processor (CardConnect) to pay commissions back to the software provider (DaySmart Vet).
So CardConnect will ultimately set you rates accordingly, knowing that they need to pay DaySmart Vet while still leaving enough meat on the bone to profit themselves.
But You Still Have Plenty of Room to Negotiate Better Processing Rates
Despite CardConnect being your only option to process payments in DaySmart Vet, it’s not like you have zero leverage.
We know from our first-hand experience that CardConnect is receptive to negotiations. They still want your business. And this holds true for both new and existing merchant accounts.
Whenever we deal with CardConnect on behalf of our clients, we find they tend to be fair and willing to offer competitive rates. Even within integrated setups.
You just need to ask for it.
In our experience, CardConnect attempts to raise pricing every 12-18 months or so. This is completely normal, and almost every processor does this.
Don’t blindly accept those terms. Give them some pushback. And if you’ve been using CardConnect for a few years with DaySmart Vet and haven’t negotiated your rates since the initial contract, I can almost guarantee that there’s room for savings on your account.
What Else You Need to Know About CardConnect
CardConnect is actually a super ISO of Fiserv. This adds another level of complexity to the setup that can impact your rates.
Since CardConnect and Fiserv are effectively offering the same exact solutions, it means that changes with Fiserv will have a trickle-down effect on your integrated processing with DaySmart Vet.
For example, say Fiserv’s quarterly earnings fall short. This is a scenario that often leads to rate increases across all merchant accounts, including CardConnect, and including CardConnect accounts set up through integrated third-party software.
The more mouths there are to feed, the higher your rates are going to be. It just means that you need to be more vigilant with keeping an eye on your account and statements.
On the plus side, it also means you have access to some of Fiserv’s industry-leading solutions, like Clover POS terminals.
Looking Beyond Your Discount Rate
One thing that both CardConnect and Fiserv are known for is offering fair discount rates but padding their markups elsewhere.
In the world of payment processing, your discount rate is the price you pay per transaction as a markup to your processor (CardConnect).
I know that CardConnect offers interchange-plus pricing, which is available to anyone using DaySmart Vet as well. This means you pay the interchange rates set at the card network level by Visa, Mastercard, etc., plus a markup (discount rate), to CardConnect.
For an integrated setup like this, the discount rate can be anywhere from 0.20% to 0.60% per transaction, depending on your volume. Ideally, we want to see that number under 0.40% or 0.35%.
But those aren’t the only fees being paid to CardConnect. They’ll also charge you:
- Per-item or per-transaction fees (fixed amount on top of the discount rate).
- Authorization fees
- CardPointe gateway fees
- Annual PCI compliance fees
- CardPointe tokenization fees
- Minimum processing fees
- Retrieval fees
- Annual membership fees
- Activation fees
- DDA reject fees
- Statement fees
- Regulatory fees
These are some of the most common charges we see on CardConnect statements that go straight to their pockets. Your specific account may not have all of them, but I imagine you’ll have some, and potentially others not mentioned here.
When you add up all of these other charges, it can make a huge difference in your total markup.
You might think CardConnect is only charging you 0.30% per transaction. But in reality, their markup can be closer to 1% when you account for all of these other charges.
How to Make Sure You’re Getting the Best Deal on Integrated Payment Processing in DaySmart Vet
Educating yourself and understanding exactly what’s happening behind the scenes with your practice’s credit card processing setup is the first step. Armed with this knowledge, here’s what you can do:
- Negotiate directly with CardConnect (not DaySmart Vet).
- Make sure you’re on a true interchange-plus plan.
- Understand what’s negotiable, and focus on those markups.
- Audit your statements closely to identify extra fees, and push to get them removed.
Look, integrated processing is always going to be slightly more expensive than a standalone setup.
There’s extra work involved for the processor and software provider to facilitate things, and they need to charge accordingly.
Just don’t let yourself get ripped off in the process. There’s a difference between rates being slightly inflated to cover extra costs vs. overpaying drastically. And processors love to push their limits here because it’s easier to get away with when you have these extra layers to hide behind.
So whether you’re considering DaySmart Vet’s integrated processing for the first time or you’re already set up with CardConnect and not sure if you’re getting a fair deal, reach out to our team here at MCC for a free assessment. We’ll help negotiate the best possible terms on your behalf.