Guides
Veterinary practice client financing: CareCredit vs Scratchpay compared
Veterinary practice client financing: CareCredit vs Scratchpay compared on merchant fees, state lending disclosures, and approval timelines.
What to take away
- CareCredit is a deferred-interest credit card issued by Synchrony Bank; Scratchpay is an installment loan platform. Both pay the practice upfront and charge a merchant fee.
- Merchant fees are quoted in USD as a percentage of each financed transaction. The 0% to 14.99% and 0% to 9.99% ranges that circulate are unverified estimates, not published schedules. Neither Synchrony nor Scratchpay posts a standard rate card; the fee lives in the practice's own agreement and moves with term and volume.
- State lending disclosures differ. CareCredit falls under open-end credit rules; Scratchpay installment loans may require state lending licenses and APR disclosures.
- Neither provider removes the practice's duty to train staff, verify treatment plans, and handle declined clients.
How the programs work
Both products exist to move a client's veterinary bill into installments. CareCredit is issued by Synchrony Bank and works as a credit card accepted at participating practices. Scratchpay is a third-party installment lender that pays the practice and collects from the client over a fixed schedule.
- Verify the client's total estimate and select the financing term.
- Submit the application through the practice portal or client-facing link.
- Confirm the approved amount and net proceeds before the procedure starts.
CareCredit merchant fees depend on the promotional length the client chooses. A "no interest if paid in full within 6 months" plan often carries a lower merchant fee than a 24-month plan. The practice receives the transaction amount minus that fee.
Scratchpay fees also vary by term and applicant. The practice sees an approved offer before treatment is finalized, then can accept or reject based on the net amount.
For capital purchases, review SBA 7(a) loan requirements before mixing client financing with equipment debt.
The criteria that matter
A practice owner comparing these two should weigh four criteria: merchant fee, approval speed, state disclosure burden, and client eligibility.
CareCredit vs Scratchpay criteria
CareCredit
- Product type
- Deferred-interest credit card
- Merchant fee
- 0% to 14.99%
- Approval speed
- Instant to minutes
- Disclosure burden
- Federal Regulation Z
- Client eligibility
- Credit approval required
Scratchpay
- Product type
- Installment loan platform
- Merchant fee
- 0% to 9.99%
- Approval speed
- Instant to minutes
- Disclosure burden
- State lending licenses
- Client eligibility
- Credit approval required
CareCredit
- Product type
- Deferred-interest credit card issued by Synchrony Bank
- Merchant fee
- Not published; set in the practice's Synchrony agreement, higher on longer no-interest terms
- Approval speed
- Provider states a decision within minutes, at the desk
- State lending disclosure burden
- Open-end credit; federal Regulation Z disclosures apply
- Client eligibility
- Credit approval required
Scratchpay
- Product type
- Installment loan platform
- Merchant fee
- Not published; set in the practice's Scratchpay agreement, quoted as a flat percentage
- Approval speed
- Provider states an offer before treatment is finalized, which the practice accepts or declines
- State lending disclosure burden
- Closed-end installment loan; state lending licenses may apply
- Client eligibility
- Credit approval required
The merchant fee is not the only cost. Review the margin math behind a veterinary practice so a financing fee does not cross the break-even line.
Approval timelines
CareCredit states on its application page that a decision is usually returned in minutes, while the client is still at the desk. Scratchpay states that it reviews an application quickly and returns a loan offer showing the APR and payment count. The practice accepts or declines that offer before treatment starts.
Neither company publishes a median decision time, an approval rate or a same-day funding figure. Ask for all three in writing, then log what you see on your own applications.
CareCredit at the desk
CareCredit works best for practices with high average invoices and clients who ask for six- or twelve-month no-interest promotions. The practice can advertise the word "no interest if paid in full" but must include the deferred interest cost if the balance is not cleared by the promo end. That disclosure duty sits with the practice at point of sale.
Merchant fee impact on $1,200 estimate
- 12.99%merchant fee on 24-month plan
- $155.88proceeds reduced by fee
- 10%net margin already priced in
- negativecase margin after fee
Before promoting deferred interest, review CFPB consumer credit card information for the federal rules on how the offer must be presented.
The merchant fee on a 24-month plan can erase margin on a discounted wellness package. For a $1,200 estimate, a 12.99% merchant fee reduces proceeds by $155.88. If the practice already priced the service to a 10% net margin, the financing fee can turn the case negative.
Scratchpay at the desk
Scratchpay is typically structured as an installment loan with a fixed APR and set payment count. That makes state disclosures more predictable for the practice, because the APR is shown to the client on the approved offer.
Lender licensing is state by state and named. California licenses installment lenders under the California Financing Law, administered by the Department of Financial Protection and Innovation. Texas licenses them through the Office of Consumer Credit Commissioner. A practice that markets "payment plans available" may need to confirm Scratchpay is licensed in that state before promoting it.
Check your state's lending rules with practice compliance resources before advertising any payment plan.
Run the same $1,200 invoice through Scratchpay. At an illustrative 6% flat fee, the practice nets $1,128; at 6.9%, it nets $1,117.20. Both figures stand in for the clinic's contracted rate, which is not published.
Compare that with the $1,044.12 CareCredit leaves on the same invoice under a 12.99% fee. The gap is $73 to $84 per case in Scratchpay's favor at those fee levels.
Scratchpay's merchant fee on short plans can be lower than CareCredit's long deferred-interest plans. A practice with many $300 to $600 invoices may prefer the predictability of a flat installment fee.
Where each one wins
Use CareCredit when the practice wants a widely recognized credit card at the desk and clients regularly request "no interest if paid in full" promotions. A high-volume dental or surgical practice with $1,500 average invoices can absorb a 6-month promotional merchant fee more easily than a 24-month fee.
Before selecting a provider based on fee alone, revisit veterinary practice prices for profit to set the minimum net margin that any financing fee must not cross.
Use Scratchpay when the practice wants fixed installment payments and fewer state disclosure variations. A practice in a state with active lending enforcement may prefer Scratchpay's model because the lender handles the installment licensing and APR disclosures, not the practice.
What none of them solve
Neither CareCredit nor Scratchpay solves client education, estimate accuracy, or in-house payment plans. Both require credit approval, so a share of applicants may be declined depending on the clinic's client base. The practice still needs a script for declined clients. The AVMA practice management resources include payment plan documents and client communication guidance.
Both share the same limitation: they add a lender between the practice and the client. Neither product removes the practice's obligation to disclose deferred interest or installment terms accurately under state law.
