The Expense You Don’t See (But Definitely Feel)

By: Merchant Advocate

Veterinary clinic managers and owners experience many challenges. On any given day, you’re balancing patient care, client communication, staffing coordination, inventory management, and the overall financial health of your practice. With so many competing priorities, it’s no surprise that some expenses—especially the less visible ones—don’t always get the attention they deserve.

One of the most commonly overlooked areas of overspending in veterinary practices is payment processing. Every veterinary practice relies on the ability to accept payments seamlessly. Credit cards, debit cards, mobile wallets—these are now essential to delivering a seamless client experience. But behind every transaction is a complex system of fees, rates, and markups that most offices rarely scrutinize in detail.

Merchant statements are notoriously difficult to read. They’re filled with industry jargon, fluctuating rates, and line items that don’t always clearly explain what you’re being charged—or why. For busy managers, taking the time to decode these statements often falls to the bottom of the priority list. Unfortunately, that’s exactly what payment processors count on.

“Merchant statements are notoriously difficult to read,” says Merchant Advocate’s dedicated VHMA representative, Scott Brandle. “Processors often use complex, inconsistent, and sometimes deliberately convoluted formats to hide fees and prevent rate comparisons. This ultimately makes it extremely difficult to separate actual costs from processor markups.”

Over time, small inefficiencies, hidden fees, or misclassifications can quietly add up to thousands (or even tens of thousands) of dollars in unnecessary costs each year.

To understand just how widespread this issue is, here are some findings that Merchant Advocate made following VHMA’s 2025 Management Exchange in Nashville. Since the conference, 59 VHMA member practices have submitted their merchant statements for a complimentary, in-depth analysis—and the results were eye-opening.

Only 17 of those veterinary hospitals were verified as having their merchant fees properly aligned with industry benchmarks, that’s 28% of the provided statements. Even among this group, many chose to schedule follow-up reviews within 12 months—recognizing that pricing can shift over time and ongoing oversight matters. That means more than 70% of practices had room for improvement.

In fact, 42 veterinary hospitals were identified as paying excess and unnecessary processing fees, with a combined total of $472,000 in annual overpayments. On average, veterinary hospitals that underwent this process realized $11,258 in annual savings.

Imagine what could be done with these types of funds. For many practices, that’s the equivalent of:

• Hiring a part-time staffer
• Investing in new diagnostic equipment
• Expanding client services
• Or simply improving overall profitability

It’s important to emphasize that these findings don’t reflect poor management. In fact, many of the practices reviewed were highly organized, financially disciplined, and operationally strong. The issue lies in the nature of the payment processing industry itself.

“It is not surprising that over 70% of those VHMA attendees had excessive and unnecessary merchant rates,” says Brandle. “Some estimates are that up to 80% of businesses overpay because the industry relies on a ‘silent tax on ignorance.’ Processors purposely design the statements to be confusing which causes frustration to the point of never analyzing monthly statements for the business.”

Several factors contribute to overpayment:

1. Complexity by Design

Merchant pricing models—such as interchange-plus, tiered pricing, and flat-rate structures—are inherently complex. Without specialized expertise, it’s extremely difficult to determine whether your rates are competitive.

2. Lack of Transparency

Processors may bundle fees, use vague descriptors, or omit clear explanations for rate increases. This makes it challenging to identify where costs are coming from.

3. Incremental Fee Increases

Over time, processors may introduce small increases or additional fees. Individually, these changes may seem minor—but collectively, they can have a significant financial impact.

4. No Benchmark for Comparison

Most veterinary practices don’t have access to industry benchmarks for payment processing. Without a point of reference, it’s nearly impossible to know if you’re overpaying.

5. Limited Time and Resources

Even if you suspect there may be an issue, auditing merchant statements line-by-line requires time and expertise that most clinic managers simply don’t have.

This is where hiring a third party consultant, such as Merchant Advocate, can provide a meaningful advantage. Rather than asking clinic managers to become experts in payment processing, Merchant Advocate acts as an independent member benefit provider—analyzing, benchmarking, and optimizing merchant fees on your behalf.

The process is super simple. All you need to do is provide your merchant statements, and our expert team of analysts conducts a detailed review to uncover hidden fees, pricing inefficiencies, and billing errors. Instead of overwhelming you with technical jargon, we translate our findings into clear recommendations, showing exactly where savings opportunities exist.

If overcharges or inefficiencies are identified, Merchant Advocate works directly with your processor to negotiate better rates—or helps you transition to a more cost-effective solution if necessary.

Even for the practices already aligned with industry benchmarks, Merchant Advocate recommends periodic reviews. Payment processing is not a “set it and forget it” expense—rates and fee structures evolve, and ongoing oversight ensures you stay protected.

“An annual review of merchant statements is crucial for reducing unnecessary fees, identifying overcharges, and ensuring contract compliance,” Brandle states. “It enables businesses to check for hidden costs, negotiate better rates, monitor rising chargebacks, and verify that processor pricing remains competitive.”

The veterinary industry continues to evolve, with increasing demand for services, rising operational costs, and growing competition. In this landscape, financial efficiency is more important than ever. If you haven’t reviewed your merchant statements recently—or if you’ve never had them independently analyzed—now is the time to take a closer look.

Because the truth is, the easiest way to increase the bottom line for your practice might not come from increasing revenue—it might come from simply stopping unnecessary losses.