A win is a win, and a payment is a payment…right?? Well, not exactly. Not all payments are created equal. In fact, payments made by Virtual Credit Card range from 2-5% less due to credit card terminal fees the PROVIDER has to pay.
That’s right. Just to accept payment for the services YOU provide, YOU are paying up to 5%. And it gets me a little heated.
What are Virtual Credit Cards?
Virtual Credit Cards (VCCs) are an increasingly popular form of claim payment used by insurance companies. They contain an image of a credit card with a one-time number and exact payment amount printed on a sheet of paper along with the explanation of benefits. They are often mailed or even faxed to the provider, despite being called “virtual.”
We have one client practice that was getting a lot of these in the mail. They make about $4MM each year from insurance companies. If 25% of that comes from VCCs and they pay 3% to their merchant, that’s $30,000 they paid just to accept money they were owed(!).
If you’ve been accepting these VCC payments, it’s time to stop.
We recommend calling the payers who are sending those cards and requesting they set up automatic deposit or send paper checks. Most companies also have opt-out forms online.
While it may take a few phone calls to put an end to the VCC payments, in the long run your team will win back the time they were spending manually running those cards in addition to the ~3% in fees.
What would YOU do with an extra $30,000?
At Altus, we help you run a stronger, more profitable practice. You keep kids healthy. We make sure you get paid for it – without a 3% fee!