August 28, 2023

Virtual credit cards for healthcare payments

Explore the evolving landscape of healthcare payments through the lens of virtual credit cards (VCCs) — a secure and efficient method for insurance claims with benefits like reduced fraud and improved cash flow.

Virtual credit cards (VCCs) are a type of credit card that can be used only one time. The card information is typically transmitted electronically, often by fax. This makes VCCs a convenient and secure way for insurance companies to pay healthcare practices for claims.

Benefits of VCCs for healthcare practices

There are several benefits of using VCCs for healthcare payments.

  • Reduced fraud: VCCs can help to reduce fraud. The practice receives a one-time use, 16-digit code with which to complete the virtual card transaction. This makes it more difficult for fraudsters to steal the card number and use it to make unauthorized purchases.
  • Improved cash flow: VCC payments are typically processed much faster than paper checks. This means that healthcare practices can get paid for their claims more quickly, which can help to improve their cash flow.
  • Simplified processing: Most practices already process payments in-office through their payment processor. These same systems can process virtual cards, which can simplify the payment process.

Drawbacks of VCCs for healthcare payments

There are also some drawbacks to using VCCs for healthcare payments.

  • Processing fees: There is typically a processing fee for each VCC transaction. These fees can add up, especially for practices that receive a lot of VCC payments. Before embracing VCCs, make sure to check the rates.
  • Technical requirements: Healthcare practices need to have credit card processing capabilities in order to accept VCC payments. This can be a barrier for some smaller practices.
  • Clarity: Practices may not be aware of the full range of payment options available, such as electronic fund transfer (EFT) and check. Staff members might receive and process virtual cards without knowing there are other payment options available.

Expand healthcare payment options

While the adoption curve might have its ups and downs, virtual insurance cards are not just a fleeting trend, but a significant step forward in the future of healthcare payments. As technology continues to advance and as practices gain more experience with this payment method, we can expect processes to become even more streamlined and user-friendly.

Offer more payment options

Tebra can assist you with in-person, online, and virtual card payments