November 05, 2024
Can a healthcare provider charge patients a surcharge for using an FSA or HSA card?
Dear Consumer Ed:
Can a healthcare provider charge patients a surcharge for using an FSA or HSA card?
Consumer Ed says:
While healthcare providers cannot charge a surcharge for using a Flexible Savings Account (FSA) or Health Savings Account (HSA) card, they may be able to charge a convenience fee if certain conditions are met.
What is the difference between a surcharge and a convenience fee?
A surcharge is an additional fee that merchants add on to the purchase price of a product or service, which is designed to offset the processing costs that merchants incur when they accept credit cards. In Georgia, surcharges may only be added to credit card transactions and cannot be added to debit card transactions. Generally, if a healthcare provider is adding a surcharge for credit card payments, the provider must post a sign or notify the patient about the additional charge. The provider must also state the percentage to be charged (typically between 2% to 3% of the purchase price). Merchants cannot charge their customers a surcharge fee that exceeds the amount the merchant pays to accept the card.
On the other hand, convenience fees are charged for the convenience of paying using certain methods. A convenience fee is a flat fee that may be added by a merchant for electronic forms of payment (such as a credit or debit card) but only if there is also a direct payment option (e.g. check, cash, or money order) where no convenience fee is charged. As long as a healthcare provider offers such a direct payment option, it may charge a convenience fee for using an FSA or HSA card since these cards function like a debit card. It is important to note that while a surcharge is calculated based on a percentage of the transaction amount, a convenience fee is a fixed amount that cannot change regardless of the amount of the transaction.