Insurance Pays with Virtual Credit Card
In some cases, insurance companies contract with an outside party to pay their providers via a virtual credit card. Insurance companies do this because they make a bit of money off of the credit card processing fees that are incurred and paid by YOU. Essentially the insurance company is saying, "we would like to pay you 3% to 5% less for your work, OK?" when asking a user to accept this form of payment. This is the amount of the transaction fee that your credit card company is going to charge a user to process this payment. It saves the insurance company some money (they don't have to mail a check), but is literally at your expense.
Our recommendation is NOT to accept these types of payments.
If you do, however, decide to accept a virtual credit card from an insurance company, use the following process:
⚠️ Note: Running the virtual card through TherapyAppointment will cause the insurance payment to show as a Client Payment. This will cause you to have inaccurate accounting for your clients.
- Instead, run them through your credit card processor's virtual portal.
This may be with Global Payments/TSYS or International Bancard System. Each of these systems provides you with a username/login to use to directly access their terminal.
- After processing the payment, enter the payment by using the Enter an EOB process.
📄 Article: Enter an EOB
Below are some of the most common Virtual Credit Card Payment systems used by insurance companies and links to their website where instructions about switching to a different payment type are available. If you receive virtual credit cards from these vendors, you can request that they send you either a paper check or direct deposit. Be aware that in some cases, them setting up direct deposit may incur a fee. However, the convenience of direct deposit and e-delivery of the ERA file may be worth the fee that they are charging, which seems to be around 2%. It might help to complain to the insurance company's provider relations department about these practices: You should not have to 'pay' to get paid for your services.
- Zelis Payments: https://www.zelispayments.com/virtualcard/
There are instructions on this page to have payments sent directly to your bank account.
- ECHO Payments ECHO Payment Options (echochecks.com)
Be aware they charge 2% to receive EFT, but paper checks are free.