March 16, 2015
Many insurance companies have begun paying claims with virtual credit cards. But practitioners end up paying more than they would via an electronic funds transfer (EFT) or a paper check. When insurance companies use virtual credit cards, the practitioner is required to write off a portion of the amount charged to the insurer for the services rendered and also is charged a transaction fee to run the card to receive reimbursement for the claim. It also can be more time-consuming for the staff member in charge of processing the transaction.
Dental practices are not required to accept credit cards from insurers as payment and may request payment via EFT or a paper check. Take the following steps to guard against this type of activity.
• Review and evaluate the contracts you have with insurance companies to see whether you are required to accept credit cards as payment.
• Make sure you fully understand merchant card agreements and the transaction fees associated with them.
• Request payment in the form of EFT to reduce your costs.
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