Q: What fees are typically associated with patient financing plans?

What the practice pays, and what the patient pays

A:The practice's fee is a share of each purchase a patient finances, and lenders set it in different ways. Sunbit, whose loans are made by TAB Bank, lists practice fees "as low as 1.9%" and says it charges no setup or monthly fees. CareCredit, the health credit card from Synchrony, says its processing fee depends on the promotion used for each purchase, and it charges no annual or monthly fees. Patient Payment Solutions, which sells financing and payment plan services to clinics, lists a $299 application fee, $99 a month, and transaction fees of 3.9% to 14.9%.^1,2,3

For the patient, the cost is interest, and on some cards it is deferred interest. CareCredit's card agreement sets the purchase APR (annual percentage rate) at 32.99%, and a balance left when a no-interest promotion ends is charged interest from the purchase date. Sunbit's loans run from 0% to 35.99% APR, and Sunbit says it charges no late fees and no deferred interest. The Consumer Financial Protection Bureau put the typical medical credit card's APR at 26.99% in 2023, against about 16% for all general-purpose cards.^4,1,5 Our CareCredit or Sunbit answer compares those two side by side, and the patient financing review covers how deferred interest has played out for patients.