Merchant Fees: Why Independent Pharmacies Can No Longer Afford to Be Afraid

Cash discount fee. Processing fee. Service fee. These are terms independent pharmacies encounter daily, and they all point to one thing: merchant fees.

What Are Merchant Fees?

A merchant fee is a charge a business pays to process customer credit and debit card payments. These fees are distributed among the card network (Visa, Mastercard), the customer’s issuing bank (Wells Fargo, Chase), and the payment processor (Square, PayPal). Essentially, it’s the cost of accepting card payments.

According to The Nilson Report, 2024 was a record-setting year for card payments in the U.S. at a staggering $11.9 trillion dollars. Along with it came $187.2 billion in merchant fees, meaning businesses paid $1.57 for every $100 accepted via card.

For independent pharmacies, these costs can quickly add up. Many choose to absorb this expense rather than passing it on, fearing it might drive patients to big-box competitors like CVS or Walgreens. One pharmacist shared with our team at a trade show that he pays $112,000 annually in merchant fees. This is enough to cover a four-year public university tuition for one student!

RxBLU’s Solution

Our Cloud-based pharmacy software gives independent pharmacies the option to add merchant fees directly to a patient’s total at the point of sale. This helps pharmacies maintain cash flow without compromising integral service quality.

We understand the hesitation. A small increase from a $10 copay to $10.40 can feel risky. But post-COVID, Americans are more aware of the challenges faced by small businesses and are often willing to pay a little extra to support local businesses. Passing the merchant fee on is not just reasonable, it’s a practical step toward financial stability.

At RxBLU, we don’t just provide pharmacy management software; we provide solutions that help independent pharmacies thrive. Merchant fees are a reality.  Embrace them, and turn a cost center into a manageable part of your business strategy.