Why More Providers Use Card On File For Healthcare Payment Processing Needs

Posted In: Healthcare Payments


To solve the financial challenges brought on by today’s complex healthcare landscape, providers are turning to new payment methods to offer their patients. Patients have become harder to collect from for a multitude of reasons, but most notably because of the rise of high deductible health plans. To meet the needs of your patients, and the needs of your practice’s bottom line, consider how a card on file payment method might work to solve your unique healthcare payment processing needs.

Card On File: A Brief Overview

Dozens of industries use this simple payment method to streamline collections and reduce operational overhead. Think about the various scenarios in your own life that you might be asked to use card on file to pay your bills:

  • When you check into a hotel
  • Pay for a gym membership
  • Make a car payment

All of these scenarios could be used by keeping your payment method on file. The benefit? The process saves you time and reduces the administrative burden from billing departments tracking down payments.


How It Works

Card on file payment methods are rather simple to understand. You simply store a customer’s payment information in a secure system. This could be your practice management system or point of service terminal. Payment processors that process card on file transactions must be PCI compliant. The PCI Security Standards Council sets the standards to ensure all parties are represented in a secure, safe transaction.


Unique Challenges of Healthcare Payment Processing

Card on file is used as a payment processing method in all kinds of industries. What these industries have in common is that the use card on file as a means to ensure they receive payment and to improve the payment process. That couldn’t be more true for the use of card on file in healthcare payment processing.

Healthcare payments run a higher risk of going uncollected than most other industries. In fact, most patients would admit that their healthcare bills are at the bottom of their list of financial priorities. For healthcare providers, that reality can be hard to grasp.

Instead of worrying if patients will pay you for your services, offer a payment method that makes it easy for them to do so. Card on file is not only a secure way to ensure payments for providers; it also gives patients peace of mind knowing that their bills are settled on terms they agree to. When setting up payment plans with patients, keeping a card on file is an excellent way to ensure you recoup the agreed upon amount each month. Patients don’t have to worry about settling a bill and can focus on the care you provide for them.
Healthcare payment processing shouldn’t cause you and your staff headaches month after month. Payment solutions like card on file can help alleviate the stress associated with trying to collect from your patients. Present card on file as your preferred payment method and patients will soon catch on. If you emphasize all of the ways that card on file is actually helpful to their healthcare experience, patients will thank you for the convenience and transparency you are able to provide them.


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