Healthcare Credit Card Processing: Industry Guide
Healthcare organizations work tirelessly to provide efficient and high-quality medical services to patients. In this complex environment, it is important for these institutions to offer easy-to-use payment options to patients. These specialized payment solutions must have the capabilities to integrate with software related to insurance, co-pay tracking, and medical supply deductions. Some treatments may not be covered by insurance companies, and for such instances, healthcare organizations must be able to collect credit card payments directly from patients or attendants.
QuadraPay has been providing healthcare payment processing solutions to institutions since 2016. Our team has created this extensive guide for you. In this guide, we have discussed various aspects related to healthcare payment processing, such as key features, the application process, KYC documents, and different types of payment solutions used in healthcare institutions. Let’s begin.
Healthcare Industry MCCs (Merchant Category Codes)
- 5047 Medical, Dental Ophthalmic, Hospital Equipment and Supplies
- 8011 Doctors and Physicians (Not Elsewhere Classified)
- 8021 Dentists and Orthodontists
- 8031 Osteopaths
- 8041 Chiropractors
- 8042 Optometrists and Ophthalmologists
- 8049 Podiatrists and Chiropodists
- 8050 Nursing and Personal Care Facilities
- 8062 Hospitals
- 8071 Medical and Dental Laboratories
- 8099 Medical Services and Health Practitioners Not Elsewhere Classified
Better Healthcare Payment Processing Solutions
As a trusted provider of merchant accounts and payment processing solutions, we have massive experience in the healthcare industry. Your organization should be able to accept all major credit and debit cards because you never know which patient has access to which type of card. The payment solution must implement a high level of data security for fraud risk reduction.
It is important for healthcare payment systems to integrate well with medical billing and EHR systems. Another most important factor is that the payment solution should comply with HIPAA, LegitScript, and PCI DSS rules and standards. When you work with a provider that truly understands the complexities of handling healthcare transactions while fully adhering to regulatory standards, then you will be able to focus on your core business activities rather than worrying about payment processing.
Types of Healthcare Payment Processing Solutions
Every patient’s financial situation is different, and so are their preferences when it comes to making payments. At QuadraPay, we provide a comprehensive suite of healthcare payment processing solutions that suit all types of transactions.
ACH (Automated Clearing House) Payments for Healthcare
ACH payment processing is ideal for recurring transactions such as monthly treatment plans, therapy sessions, or long-term care services. The funds are directly transferred from the patient’s bank account to the merchant’s business bank account. ACH is definitely a cheaper option when compared to credit card processing. For any healthcare business that prefers automated billing at low cost, ACH should be the number one choice.
Healthcare Credit Card Processing
In today’s world, most patients prefer to make payments by using their debit or credit cards. Whether you are charging them for a consultation fee, diagnostic test, or emergency treatment, card payment provides instant authorization and faster settlement. With our healthcare credit card processing solution, you can accept almost all types of credit cards and reduce cash handling risk.
Point-of-Sale (POS) Terminals for Healthcare Businesses
For in-person payments, we offer POS terminals. With these devices, the front desk staff can accept chip cards, swipe cards, tap-to-pay NFC, and mobile wallet payments. After the successful transaction, these terminals print a receipt that can be given to the patient for records. Most of our credit card terminals can be easily integrated with popular practice management software.
Benefits of Specialized Healthcare Credit Card Processing Solutions
By implementing the right healthcare payment processing solution, such as those that QuadraPay provides, your organization can get numerous benefits. Our payment processing solutions are customized to meet the unique needs of the medical industry. These benefits have been carefully developed to improve the overall operational efficiency and patient satisfaction. Let us explore some of these key benefits.
Safe and Secure Transactions
One of the foremost concerns in the healthcare industry is the protection of sensitive patient information. The team at QuadraPay truly understands this, and that is why it only works with payment service providers that are capable of delivering highly secure payment processing. Our partner providers implement various measures that significantly reduce the risk of information loss. These specialized payment solutions are built to uphold the highest data security standards, which ensures patients’ confidentiality.
Multiple Payment Method Support
Healthcare providers should allow patients to pay through various payment methods. For this, it is important that your merchant account provider offers you the ability to accept credit cards, debit cards, ACH, and other payment instruments. With an omnichannel payment solution, you will be able to accept digital payments over your healthcare institution’s website as well as at the front desk.
PCI-Compliant Gateway Integration
With our solutions, you get the ability to choose from a range of available PCI-compliant payment gateways. We do not restrict you to one specific gateway. All of our solutions fully comply with regulations related to healthcare financial operations.
Easy Integration with Existing Software
Payment processing solutions are designed to integrate easily with your practice management software as well as EHR and billing applications. This way you can easily integrate the payment solution without complex technical requirements and downtime.
Advanced Dashboard for Healthcare Providers
The merchant account panel gives you the ability to view all the latest transactions. You can also export reports and then identify the sales trend. From the merchant account panel, you can easily manage chargebacks and disputes as well.
KYC for Healthcare Credit Card Processing
When healthcare providers apply for a credit card processing account, then they must undergo a Know Your Customer (KYC) process. This is a mandatory process required by financial institutions and payment processors. This process helps merchant services providers verify the legitimacy of the business and prevent fraud and money laundering. Healthcare institutions submit some documents to the processor for evaluation. Let us explore these in detail.
The first part of KYC involves business verification. The healthcare provider must submit business registration documents for an LLC, corporation, or sole proprietorship. Along with the incorporation documents, merchants also need to submit an Employer Identification Number (EIN), a company’s utility bill, and industry-specific licenses or certifications, such as a medical or dental license.
The next part is the validation of documents related to company directors. For that, they can provide the driver’s license or passport to confirm identity.
For banking information, merchants must provide a letter from the bank that confirms the routing number and account number. If such a letter is not available, then you may also share a voided check. Industry- and sector-specific requirements may vary, and the underwriters will ask for additional documents when needed.
Healthcare Merchant Services Application Process
Applying for healthcare merchant services involves several steps. Let us explore these in detail.
Research Payment Processors
First, you’ll need to identify a payment processor that specializes in working with merchants from the healthcare industry. Remember not every processor is fit for healthcare processing, as it requires additional compliances. Once you find the payment processor that supports healthcare businesses, then you move to the next step, which is preparing the KYC documents.
Gather Your Business Information
You will share the application form and copies of KYC documents with the payment processor for review.
Underwriting and Compliance Review
After submission, the underwriters will carefully evaluate all the documents that you share with them. All documents will be verified, and based on the judgment of the underwriters, your application will either be approved or declined.
Once approved, the merchant account is activated, and you’ll be able to start accepting credit card payments. The processor will share details related to the payment gateway and point of sale system. You can start the integration and then start accepting live transactions.