Learn how gross and net payout amounts are calculated in Payments, and how surcharge pricing impacts your final deposits.
For use with Payments
Background
Understanding your payout statement is essential for keeping your practice's financials balanced. When reviewing your transactions in Payments, you will frequently see two different amounts: the Gross amount and the Net amount.
Understanding gross vs. net amounts
Gross amount
The original balance you requested from the patient.
This represents the total value of the care provided before any deductions.
Patient ledgers should always reflect Gross amount.
For example, the Gross amount for a $100 procedure will always be $100. This would be the amount recorded in a patient ledger.
Fees
The payment processing or platform fees deducted from the transaction to cover the cost of securely running the payment.
For example, the Fee for a debit card payment of $100 would be about $3.
Net amount
Your actual profit from the payment.
This is calculated by taking the Gross amount and subtracting the Fees. (Gross - Fees = Net)
The Net amount is the exact total that gets grouped into a payout and deposited into your practice's bank account.
For example, the Net amount for a $100 payment would be about $97, because of the $3 fee. $97 is what would then show up in your bank account.
When to use each amount
Use the Gross amount when you are looking at a patient's ledger or receipt. This matches the exact cost of the services rendered and what the patient originally owed.
Use the Net amount when you are reconciling your bank account deposits with your Payout Statement.
How surcharge pricing affects payouts
Surcharge pricing is a setting that passes the payment processing fees onto the patient. When a patient pays using a credit card, a calculated surcharge fee is added to their requested balance.
Here is how surcharge pricing changes your payouts:
The patient pays the Gross amount plus the Surcharge fee.
The platform deducts the standard processing fee from this new total.
Because the patient's surcharge covered the processing fee, your practice does not absorb the cost.
As a result, your Net amount will equal your Gross amount. You receive the full requested cost of care! This means that for a $100 Gross amount, $100 will be your payout, with surcharge pricing.
Remember, Surcharge pricing may only be attached to credit cards - not debit, HSA, or FSA cards. Net payouts from Debit card transactions will always be lower than the Gross payouts because of the transaction fee.