How to Set Up Credit Card Processing for Medical Practices

Tue Aug 20, 2024 by Evercommerce

In the world of medical billing, every detail matters. Inefficiencies can lead to all sorts of problems. Delayed payments, unhappy patients, adverse health outcomes, and more.

That’s why creating a truly efficient payment system is integral to your success. And part of this is introducing credit card processing for medical practices.

Credit cards are the single most popular payment method in the United States. According to Forbes Advisor, “credit card use is widespread and continues to be a major player in our financial lives.”

This guide will equip you with the tools you need to set up this payment technology.

We’ll explain why it’s important and how to choose the right processor. We’ll list the initial setup steps and explore some strategies for optimizing your payments workflow.

We’ll finish with some tips you can use today to get started with credit card processing.

The result? Improved patient experiences and better operational efficiency. It’s success all around, so let’s get started.

Why Credit Card Processing Is Important for Your Medical Practice

Every interaction a patient has with a medical practice matters. This includes everything from the first phone call to the in-person consultation and, finally, payment.

Hiccups along the way add up. They’re left waiting too long on hold, the doctor had to cancel last minute, and now there’s no easy way to pay their bill.

Patients might not be willing to put up with these kinds of problems more than once. That means they’ll soon take their business elsewhere.

What can you do to avoid this outcome? Ensure friction-free convenience at every touchpoint.

When it comes to payments, this means staying on top of trends in payment preferences.

A huge 75% of consumers prefer to pay their medical bills online. Often, that means using a credit card. Alongside this, the use of cash has declined.

It’s your job to rise to the occasion and meet these expectations. Achieve this, and your practice benefits from the following:

Improved cash flow: Checks take some time to clear. Credit card payments, on the other hand, are deposited within a few days. This translates to more consistent cash flow and better financial management.
Reduced administrative burden: Sending bills and follow-ups is time-consuming. But when patients pay with credit cards, many of these tasks are eliminated. There’s less work for billing staff to do, which means they can concentrate on more complex challenges. As a bonus, less manual intervention means fewer errors.
More convenience and satisfaction: Like water, people take the path of least resistance. When you offer credit card payments, you make it easier for patients to pay their bills on time. This reduces the likelihood of overdue accounts and helps build stronger patient relationships.

FROM ONE OF OUR PARTNERS: Patient Payment Solutions Help Doctors Provide Quality Care

WOMAN IN SCRUBS HOLDING CREDIT CARD

Choosing the Right Credit Card Processor

Payments have a big impact on the perceived quality of care your practice offers. So it’s a smart idea to spend some time researching credit card processors.

Think of it like a partnership. You need someone you can rely on—especially when the going gets tough.

You need someone who can journey with you. They can handle high volumes and scale back when things are quiet.

Here are some pointers to get you thinking:

Look for Payment Processing Built for Healthcare Providers

There’s no industry with a payment process quite like medicine. It’s complex, and there are many factors and third parties at play.

You need a payment processor that understands the ins and outs of the industry. They should be familiar with the unique challenges you face day-to-day.

They should know how to handle things like insurance reimbursements, co-pays, and patient payment plans.

Look for features engineered to meet your needs. For example, can the processor set up recurring payments for patient installment plans? Can they process payments integrated with patient records?

Integrate Your Credit Card Processing with Existing Systems

Payments are not a standalone department in the medical industry. They are well and truly a part of the broader ecosystem. That’s why integration is a non-negotiable.

Find a processor that integrates seamlessly with your electronic health record (EHR) and practice management systems. This simplifies the payment process. It automates the posting of payments and reduces the risk of human error.

Check for Compliance with Regulations and Standards

Your processor must comply with both the Health Insurance Portability and Accountability Act (HIPAA) and the Payment Card Industry Data Security Standard (PCI DSS).

HIPAA aims to protect patient information. This extends to payment data. A HIPAA-compliant processor keeps patient data secure and private. This prevents legal issues and helps you win patient trust.
PCI DSS sets the standard for how credit card information must be handled. This includes encryption of data, secure transmission methods, and security checks. A compliant processor reduces the risk of fraud and security breaches.

FROM ONE OF OUR PARTNERS: 7 Factors to Consider When Choosing an Online Credit Card Processor

PERSON PASSING CREDIT CARD THROUGH WINDOW

5 Steps to Set Up a Credit Card Processing System

Adding credit card payments as an option at your practice is a great way to improve the patient experience. It doesn’t have to be a complicated process either.

Follow these steps for a secure, compliant, and efficient payment system:

Step 1: Set Up a Merchant Account

A merchant account is the first thing you’ll need. This allows your practice to accept credit card payments. Here’s how to do it:

Choose a merchant account provider that specializes in healthcare. Look for features like competitive rates and support for healthcare-specific transactions. Reliable customer service is a big plus too.
Submit an application with your business details. Add your tax ID, bank account information, and estimated monthly credit card transactions. Be prepared to provide documentation such as your business license and financial statements.
Once approved, the provider will set up your merchant account.

Step 2: Implement a Secure Payment Gateway

You need a payment gateway to securely process credit card payments. This applies whether those payments are made in person, online, or over the phone.

Select a payment gateway that complies with PCI DSS.
Make sure the payment gateway integrates with your practice management software and EHR. This reduces manual entry, minimizes errors, and streamlines payment processing.
Before going live, test the payment gateway. See if it processes payments accurately. Check that the data flows into your billing system.

Step 3: Integrate with Your Practice Management Software

Integrating your credit card processor with your practice management software is a time-saving step. It creates a single source of truth all billing team members can rely on.

Check that the credit card processing system and payment gateway are compatible with your practice management software.
Work with your software vendor to configure the integration. This might involve setting up payment codes and linking patient accounts.
Set up your system so that payments are automatically posted to patient accounts. This reduces the time your staff spends on manual entry and helps keep your records accurate.

Step 4: Check for Compliance with HIPAA and PCI DSS

Compliance is critical. Fail to comply, and you put the entire medical practice at risk.

Work with your payment processor to ensure that all patient data—including payment information—is stored and transmitted securely. This should be in compliance with HIPAA regulations.
Ask if your payment processing system meets PCI DSS requirements. Check for secure handling of credit card data and access controls for your staff.

Step 5: Train Your Team

Your payment process is only effective if your team knows how to use it. So invest in quality training—it pays dividends.

Provide comprehensive training for your billing staff on how to use the credit card processing system. Training should cover how to process payments and refunds. Show them how to manage charge-backs and troubleshoot common issues.
Teach team members how to best assist patients with making payments. Highlight just how important it is to maintain confidentiality during these interactions.
Schedule ongoing support and training updates. That way, when new features or updates are rolled out, your team is ready to use them.

Optimizing the Payments Workflow

Before we finish up, here are some tips you can use. These will optimize your payment workflow so you can achieve accuracy and security with less manual effort.

Create clear payment guidelines for staff and patients to reduce confusion. Communicate these upfront and be consistent.
Set up automatic payments for patients on installment plans. This helps you earn a steady cash flow, which enables more accurate forecasting and budgeting.
Offer a few different payment methods. Include credit cards, digital wallets, and automated clearing house (ACH) transfers. This means patients can pay in a way that suits them.
Use flexible payment plans to help patients manage large bills. This boosts the likelihood of on-time payments.
Use automated reminders to notify patients of upcoming payments.
Analyze payment data to identify and address issues. Make changes to your policies as needed to continually improve efficiency.

HAND TAPPING ORANGE CREDIT CARD ON READER

Top Tips for Setting Up Credit Card Processing for Your Medical Practice

Are you ready to lean into changing customer preferences and introduce credit card payments? Get started today with these tips:

Conduct research. Look for a processor that knows the medical industry. This can give you peace of mind. You know your questions will be answered and needs met. Importantly, your payment system will be compliant.
Think about the patients at your practice. What are their demographics? How does this play into their payment preferences? Younger generations might prefer digital payment options. Older generations might still use traditional methods.
Look for system integrations. Before you commit, make sure the processor integrates with your current systems. If your current systems are incompatible with leading processors, it might be time to upgrade.
Keep compliance top-of-mind. Make sure your credit card processing setup meets HIPAA and PCI DSS standards. This should be your top priority from start to finish.