Payment processing in your pharmacy must be fast, reliable, and secure. Whether your pharmacy is filling 75 prescriptions a day or 750, one thing is guaranteed: your patients will expect to pay with a credit or debit card. Sure, a few cents per transaction may not seem like a lot for your pharmacy, but the wrong credit card processor could be silently draining thousands from your bottom line every year.
Behind the counter, you’ve got transaction fees, hardware costs, customer service, integration with your pharmacy management system, and how often you get paid. Your patients may not notice, or even care, which credit card processor you use. But your bottom line definitely will.
If you don’t hone this part of your business, it could mean:
- Higher processing fees
- Hidden charges
- Limited support if something breaks down
- Frustrated customers if payment terminals are slow or go offline
If you’ve never reviewed your processor, or if you signed up years ago and haven’t looked back, this is a great time to reassess. When you’re choosing a credit card processor for your pharmacy, there are several key factors that should be considered.
“Credit cards are more prevalent now than they ever have been in the past. People don’t carry cash because they don’t like carrying it. It’s going by the wayside,” Keith Dougan, ETA CPP, at Q Solutions, LLC said. “With a pharmacy that has an IIAS-certified point-of-sale system that’s registered and certified with SIG-IS, you’re able to accept all the different forms of payment. This includes FSA cards, HSA cards, and health spending cards.”
Without an IIAS-certified POS system, you’re limited to the types of cards you can accept for certain transactions. You can still accept certain cards by becoming 90 percent-Rule Certified with SIG-IS.
“It’s where a pharmacy doesn’t have a point of sale that could track the information that is sent to the Drug Enforcement Administration (DEA) for controlled substances and things of that nature,” Dougan said. “With a 90-percent rule, it’s an attestation that the pharmacist or owner must take and say, ‘Yes. 90 percent of the drugs I sell are prescription drugs.’ However, you’re limited to certain types of cards that you can take. But because of the 90-percent rule, some insurance companies won’t accept the information as they would from a point-of-sale system.
“A point-of-sale system for a pharmacy is a must. It really is for the pharmacists’ day-to-day operations of the business if they want to supply their customers with prescription drugs of this nature. It streamlines the process,” Dougan said. “It’s very important that the pharmacy knows the SIG-IS process, which is getting SIG-IS certified, and knowing the requirements for SIG-IS.”
Square came out in the very beginning as a little mobile reader. Since then, they’ve progressed into point-of-sale systems and mobile payments, and have grown exponentially since their inception.
“If you are with Square, you’re stuck with them and their fees. Stripe is the same way. They’re all coming out with their own unique point-of-sale systems,” Dougan said. “Clover is the same way. If you buy a Clover system, whomever you bought it from, you’re locked into processing with them. You can never get mad at them and say, ‘I’m going to use my point-of-sale and go to somebody else.’”
To choose the right POS system for your pharmacy, you need to consider factors such as your business scale, employee management needs, and required integrations. It’s a good idea to prioritize features like prescription processing, inventory management, compliance with regulations (like HIPAA), and reporting capabilities. And, be sure the system will integrate with the pharmacy software your pharmacy uses.
It’s true that some processors will try to entice you with seemingly low rates, only to hit you with hidden charges. So, here is what to watch out for:
- Long-term contracts with auto-renewals
- Early termination fees (ETFs)
- PCI compliance fees (charged yearly or monthly)
- Statement fees or batch fees
- Non-qualified rate surcharges
- Equipment leasing (long-term leases cost far more than buying hardware outright)
How to Assess Your Pharmacy’s Payment Requirements
The right merchant service partner will integrate payments, safeguard compliance, and enhance the customer experience without sudden surprises. Before you compare providers, map out exactly what your pharmacy needs, such as:
- In-store, card-present transactions (chip, swipe, contactless)
- Card-not-present options (phone-in orders, mail-order billing, e-commerce)
- Support for digital wallets, QR codes, ACH, and prepaid cards
- Integration with your existing pharmacy management system
- Value-added services: gift cards, loyalty programs, and fraud protection
Remember, too, that your pharmacy also has specific legal and data security requirements, such as:
- HIPAA Compliance: Protects patient health information (PHI)
- PCI-DSS Compliance: Ensures secure handling of credit card data
- DEA Compliance (for controlled substances): Applies to e-prescriptions and some payment tracking
It’s important that you ask for proof of compliance certifications before signing up. Once this is done, you’ll need to choose a credit card processor, merchant services, and credit card terminals.
Selecting the Best Pharmacy Credit Card Processor
A credit card processor is the mediator that handles transactions between your pharmacy, the customer’s bank, and the card networks (Visa, Mastercard, etc.). It lets you know when funds have been transferred securely and deposited into your merchant account. Consider these key factors below when selecting a credit card processor for your pharmacy:
Pharmacy Management Software Integration: It’s important to choose a credit card processor that merges with your pharmacy management software. That way, payment processing will be smooth and continuous, ensuring accurate transaction records.
Transaction Fees: These fees can significantly vary between credit card processors. So, be sure to choose a processor that offers competitive rates and doesn’t have hidden fees.
Chargeback Management: Because you run a pharmacy, there’s a higher chance of chargebacks due to the sensitive nature of the products sold. Therefore, it’s important to select a processor that has a chargeback handling process that’s clear and efficient.
EMV (Europay, Mastercard®, and Visa®) Compliant: EMV compliance means the processor can process chip-enabled cards. These are more secure and less susceptible to fraud than the traditional magnetic stripe cards.
Ensure Industry Compliance: The credit card processor should be compliant with the regulations set forth by the Payment Card Industry Data Security Standards (PCI DSS). Offering seamless, secure payment options isn’t just a convenience; it’s a necessity. No matter if you’re processing prescriptions, supplements, or OTC products, the right credit card processor can streamline operations, reduce costs, and enhance patient trust.
Good Customer Support and Account Management: Select a credit card processor that offers customer support 24/7. That way, you can get help if and when issues arise with payment processing. Dedicated account managers who understand pharmacy regulations and can advocate on your behalf.
Mobile Payments: More and more customers will be using mobile payment methods such as Google Wallet® and Apple Pay®, so it’s important that you have a credit card processor that can process these payments.
Fraud Detection and Prevention: You don’t want fraudulent transactions, chargebacks, or any other risks in your pharmacy, so protect your pharmacy by selecting a processor that offers fraud detection and prevention services.
The Top Picks for Merchant Services
Choosing merchant services for your pharmacy will require careful consideration of several factors to ensure seamless and secure payment processing, such as transaction fees, fraud detection and prevention, customer support, and the ability to handle chargebacks.
Q Solutions, LLC
Q Solutions offers secure and cost-effective payment processing solutions. They offer a wide range of PCI-compliant services, including debit and credit card processing, electronic checks, online and mobile payments, and more. The solutions are designed to help businesses grow through features like gift and loyalty card programs, virtual terminals, and contactless payment options—all while reducing operational costs.
Helcim
This company is known for its transparent interchange-plus pricing and automated volume discounts. According to Fit Small Business, this makes it a potentially cost-effective option. Helcim is HIPAA compliant and offers free invoicing and billing services.
Square
The Square is an all-in-one versatile POS system that has built-in payment processing. It’s fully HIPAA compliant and can be set up to accept HSA and FSA debit cards. It offers a free website builder and virtual terminal. The downside is that it uses a flat-rate pricing model that may be pricier for high-volume transactions.
Chase Payment Solutions
Chase Payment Solutions is a direct processor and bank that offers merchant accounts with flat-rate or interchange-plus pricing. It also provides specialized medical office management software and integrates with InstaMed for online patient payments. It also offers HIPAA-compliant processing along with a service package that includes patient billing management and scheduling features.
PaymentCloud
According to Merchant Maverick, PaymentCloud is recommended for high-risk healthcare practices, such as telemedicine, due to its high merchant approval rate and emphasis on fraud prevention. It offers a dedicated account manager and can tailor custom solutions to integrate with various EHR, EMR, or PMS platforms.
Dharma Merchant Services
Dharma caters to healthcare merchants with HIPAA-compliant payment processing and offers interchange-plus pricing exclusively. It’s best for practices processing more than $10,000 per month. According to iFax, it uses Secure Sockets Layer (SSL) 128-bit encryption for secure payments.
Stax
Stax is suitable for large-volume healthcare businesses with transparent interchange-plus pricing. It integrates with various HER and EMR systems and is PCI-DSS compliant.
Types of POS Credit Card Terminals
Like any other retail business, your pharmacy utilizes various types of point-of-sale (POS) credit card terminals to process payments. Each terminal can be categorized by its features, integration levels, and how it handles transactions. Here are some of the common types of POS credit card terminals used in pharmacies like yours:
Countertop terminals
These are traditional, stationary terminals typically placed at the checkout counter. They’re known for their reliability and robustness, often offering a range of features like integrated PIN pads, receipt printers, and connectivity options (dial, IP, Wi-Fi). Examples include Verifone MX915 and PAX S80.
Mobile POS (mPOS) terminals
These are portable devices that allow your pharmacy to accept payments anywhere in the store or even during deliveries. Oftentimes, they connect wirelessly to a smartphone or tablet, thus transforming it into a payment terminal. The benefits of mobile POS terminals include increased flexibility, improved customer experience, and reduced checkout lines. Plus, mobile readers can offer a faster checkout and enhanced security through features like NFC technology.
Portable/wireless terminals
These devices connect to the internet via Wi-Fi and operate on rechargeable batteries. This allows businesses to take payments anywhere on-site. These are great for tableside payments. The Clover Flex is a popular example.
Integrated POS systems
With combined hardware and software components, these systems connect POS functions with other business systems like inventory, accounting, and customer relationship management (CRM). They streamline operations, reduce manual entry, and provide real-time data flow. Integrated POS systems offer a wide range of features, including advanced inventory management, detailed analytics, and tailored loyalty programs. Examples include PioneerRx
and PrimeRx.
EMV chip card readers
An EMV reader is a card terminal that uses Europay, MasterCard, and Visa (EMV) technology to process transactions using a small microchip embedded in them along with a pin, chip and signature, contactless, and mobile payments. The chip card machines read the smart chip in an EMV payment card instead of the magnetic strip and use the data it stores to process the payment.
Contactless payment readers (NFC)
There are many POS terminals out there that also support contactless payments through Near Field Communication (NFC) technology. It allows customers to pay by tapping their cards or mobile devices near the reader. This feature speeds up the checkout process, especially for small purchases.
Virtual terminals
These are web-based applications that allow businesses to process electronic payments without a physical terminal. These are useful for processing card-not-present transactions, such as payments taken over the phone or through mail order. You need a merchant account and an internet connection in order to set up virtual terminals.
Keith I. Dougan is an experienced entrepreneur and co-founder of Q Solutions, LLC, founded in 2009. With over 30 years of background in sales, management, and operations, he has gained valuable insight into the payment systems industry. If you have questions or would like to contact Keith:
Q Solutions, LLC
(877) 609-6377
A Member-Owned Company Serving Independent Pharmacies
PBA Health is dedicated to helping independent pharmacies reach their full potential on the buy-side of their business. Founded and run by pharmacists, PBA Health serves independent pharmacies with group purchasing services, wholesaler contract negotiations, proprietary purchasing tools, and more.
An HDA member, PBA Health operates its own NABP-accredited warehouse with more than 6,000 SKUs, including brands, generics, narcotics CII-CV, cold-storage products, and over-the-counter (OTC) products — offering the lowest prices in the secondary market.
