Managing payments is crucial for both providers and patients. Patients are responsible for keeping track of expenses and meeting deadlines for services. Healthcare providers use a wide range of payment methods to allow patients to stay on track and successfully pay for their treatment and services. One way to streamline payment procedures is with card on file payments. These systems can store a patient’s payment information so providers can use the details again later. A credit card on file policy for medical offices can increase efficiency and simplify payment structures, making it more likely that patients will meet billing deadlines.

Discover how to offer card on file payments to patients and their benefits.

What Are Card on File Payments and How Do They Work?

Card on file payments are streamlined payment processes. They occur when cardholders permit service providers to store their credit card details for future charges. Patients or customers can give permission by filling out an online form, giving card details in person or using other methods. Because providers have the credit card information on file, they can use the details for later payments.

You can use credit card on file agreements for a wide range of transactions, including:

• Monthly installments: Many consumers and patients choose to break payments into monthly installments, especially when the overall cost is too much to pay at one time. Patients may work with providers to set fixed payment amounts for a specific period, or providers can offer this financing option and set the terms. With a card on file payment, the provider could instantly charge the patient’s card each month. 
• Delayed fees: These fees occur after a transaction is completed. For example, a patient might have to pay additional payments toward their balance after receiving insurance reimbursement. A credit card on file agreement allows service providers to automatically collect these extra fees.
• No-show or cancellation costs: Most healthcare facilities have cancellation and no-show policies in place. If a patient doesn’t cancel by a certain time or doesn’t arrive at the appointment at all, they might get charged for their absence. Specific card on file agreements can help providers collect these fees automatically and discourage no-shows.
• Recurring fees: Recurring fees occur at specific intervals, usually for an ongoing service. With the authorization to keep a credit card on file, service providers can manage recurring expenses for patients.

Patients at healthcare practices could use a credit card to pay for an initial appointment. As they fill out paperwork, your facility might ask them to record their payment information for future appointments. After the patient authorizes this, your healthcare facility can automatically charge the patient with the same credit card for other expenses.

Providers need to follow credit card on file laws, such as only using the card if it’s authorized by a patient. The payment card industry (PCI) compliance standards further cover how practices should approach cardholder data. Overall, card on file agreements allow providers to receive timely and consistent payments from their patients.

Benefits of Card on File Payments for Healthcare Patients

By implementing card on file options, you can benefit both your facility and patients. Navigating healthcare costs can be overwhelming for patients. From remembering deadlines to understanding fees, keeping up with regular payments can seem challenging. 

Card on file medical payments can help patients manage their healthcare costs and gain these benefits:

• Saves time: Many payment procedures in healthcare can be time consuming. Manual paperwork processes can extend or complicate payments for patients. By authorizing providers to keep their card on file, patients can streamline manual methods and instantly keep up with recurring expenses. 
• Reduces late payments: Late payments are challenging for both patients and healthcare providers. If patients fail to meet deadlines, they might be charged late fees. Whether they miss payments due to financial reasons or because they forget, missed payments can make it more challenging to receive healthcare services. Card on file agreements can automatically complete payments for patients, reducing the possibility of missed fees.
• Improves security measures: Card on file payments can ensure a secure transaction. These services are handled by high-quality, encrypted measures that secure credit card details. Patients can feel at ease knowing their information is safe during all transactions.

Benefits of Card on File Payments for Healthcare Providers

Healthcare practices rely on consistent payments from patients. If patients don’t pay for their appointments, treatments and prescriptions, facilities can’t provide quality care. Card on file agreements make it easier for healthcare providers to manage payments and collect them at the right time.

Here are other benefits of having a credit card on file for medical offices:

• Maintain consistent payments: On-file solutions keep payment methods as simple as possible. In turn, patients are more likely to meet important deadlines and keep the facility’s revenue cycles consistent. And if you initiate automatic collections, these can increase the rate of consistent payments. Overall, credit card on file for healthcare payments can help providers stay on track for financial goals and maintain high-quality care.
• Enhance efficiency: Digital, streamlined card on file payments can eliminate paperwork and the need for checks or cash. Instead, providers can manage payments on digital, easy-to-use interfaces that speed up procedures. In turn, providers can meet with patients sooner without the roadblocks of complicated payments or long wait times.
• Improve retention rates: Easily navigable payment procedures can improve patient satisfaction. The happier your patients are, the more likely they are to return. Every element in a patient’s experience is important for overall satisfaction, and offering high-quality service throughout these steps helps you establish yourself as a leading provider.

Tips for Utilizing Card on File Payments at Your Facility

Implementing any new payment practice requires some adjustments. Here are some best practices for boosting practice profitability and getting patients on board with card on file medical payments:

1. Establish a Card on File Policy

Before you implement card on file transactions, it’s important to develop a clear, well-defined financial policy that outlines patient responsibility and expectations, including accepted payment methods, payment obligations and due dates. Your financial policy should inform patients that they have a right to receive receipts by email, text or mail and discuss your charge limits. These guidelines can help simplify patient education and promote transparency in your practice.

2. Overcommunicate About Card on File Technology

It can take time to introduce a new payment solution to your patients. The first step is communicating clearly with all patients and staff about this new option. You can start with informative signage in your office that answers FAQs about card on file payments. Communicate that card on file payments are becoming the norm in many industries, including healthcare.

You can also send out an email or newsletter to patients explaining your new payment feature and its advantages, such as convenience and efficiency during checkout and reduced wait times. Be sure to put information on your practice’s website about the new card on file changes and how patients can enroll.

3. Ask for Patient Permission

Patient authorization is key to creating a seamless, positive billing experience. It’s critical to request patient permission before storing their credit card information on file. You can even streamline the process by reaching out to them about pre-paying their copayment and asking whether they’d like to save their card on file. Then, you can collect their authorization signature via email or text before their visit.

4. Collect Accurate Patient Information

For card on file payments to be successful, you need to maintain accurate patient records. You can streamline your billing processes and minimize errors and delays by ensuring accurate patient detail collection. Whether you have your front desk staff collect contact information and insurance details or provide digital forms, be sure to repeat your patient’s information back to them privately to ensure it’s correct. This will help facilitate a smoother payment process for everyone involved.

5. Train Staff

Another key implementation strategy is staff training. Your entire administrative and front desk team should be well-versed in the card on file system so they can navigate it without any hiccups. You can also provide your staff with a simple script or talking points for patients who have additional questions. Empower your team with ongoing education sessions to help them feel confident discussing payment collection with patients while maintaining a positive experience.

For example, it’s common for patients to have concerns about security when it comes to new payment methods. Your staff should be able to reassure patients that having a credit card on file for medical offices is a highly secure and safe process.

6. Be Open to Feedback

With the right tools and resources, implementing card on file payments should be relatively straightforward. However, your top priority is always to give patients a positive experience at your practice.

Be sure to ask patients about their thoughts on your card on file process. Collecting their feedback can be very helpful in understanding patient pain points and how you can improve their payment experience going forward.

Implement a Credit Card on File Healthcare Process With Millennia

At Millennia, we understand the importance of creating enhanced patient journeys. Everything from patient intake to completing a payment impacts how a patient feels about your services. Having a credit card on file policy at a medical office can streamline manual procedures and improve their satisfaction.

Our Millennia Patient Payment Solution focuses on payment processes and promotes on-time payments. Features like an online payment portal and MobilePay allow patients to make PCI-compliant payments with the card on file in one click. To learn how to create a unified patient financial journey with Millennia, request a consultation today.

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