Card terminal fee (MDR): what it is
Quick facts
- Definition
- Percentage charged by the acquirer on each card sale, deducted from the amount received.
- Acronym
- MDR: merchant discount rate.
- Varies with
- Card brand, debit or credit, number of installments and the clinic's contract.
- Effect on cash
- Reduces net revenue and changes when the money comes in.
- Relevance in HOF
- High-ticket and installment sales make the fee weigh on the procedure margin.
The card terminal fee, technically called MDR (merchant discount rate), is the percentage the payment company charges on each card sale. It is deducted from the amount the clinic receives: the patient pays R$ 1,000.00, and the clinic receives that amount minus the fee. In a high-ticket business like HOF, that percentage weighs on the bottom line.
What does the percentage depend on?
- Type: debit usually has a lower fee than credit.
- Installments: credit split into more installments tends to carry a higher fee, because the company takes on the risk and the time.
- Card brand and contract: these vary by contract, volume and negotiation.
- Settlement time: getting paid immediately, instead of on the due date of each installment, usually costs more (see receivables prepayment).
So "the fee" is not a single number: the clinic should look at the contract and the tables by type.
How does the fee affect margin?
If the cost of the procedure (product, disposables, clinical hour, taxes) is already calculated, the fee cuts a portion of the revenue before profit. Ignoring it leaves the price artificially high on the spreadsheet and the contribution margin lower in practice. The reading of the markup must also include this deduction.
Hypothetical example: a procedure charged at R$ 2,000.00 in 6 installments, with a total fee of 5%, leaves R$ 1,900.00 of gross revenue received, before other costs. The percentage is only illustrative; use the one from your contract.
Offering installments without losing margin
The fee is one of the reasons a clinic offers different terms for cash and installment payments. Communication with the patient must be clear, without hiding conditions, and must respect the Consumer Protection Code (Brazil's consumer protection law). The decision to offer a discount, absorb the fee or split the difference is commercial, and should be applied consistently.
The fee and cash flow
The more installments, the longer the clinic waits to be paid, unless it prepays. This affects working capital and the distinction between cash and accrual. It is also worth tracking defaults on direct sales separately, since the card transfers the risk of non-payment to the card operator.
In Harmy
Harmy's PDF quote lets you show installments for information only, with value per ml, discount, validity and notice. The app does not calculate your card terminal fee: use the numbers from your contract.
Also called: MDR, card discount rate, acquiring fee.
Frequently asked questions
Should the card terminal fee be included in the procedure price?
It needs to be considered in the cost and the margin. How to pass it on to the patient (for example, with a single price or with a cash-payment condition) is a decision for the clinic, which must be clear and comply with the law and applicable rules.