Dental practices don’t have it easy navigating the complexities of insurance reimbursements. Recently, some insurers have begun offering credit card payments instead of traditional checks or electronic funds transfers (EFT). While this may sound convenient, it’s a costly trap that most dental practices should avoid.
- Hidden Costs That Hurt Your Bottom Line
Credit card payments come with processing fees—often 2–4%. These fees directly reduce your reimbursement, which may already be discounted. For a $10,000 monthly insurance payment, that’s $200–$400 lost instantly. Multiply that across a year, and you’re giving away thousands of dollars for no added benefit. - Increased Administrative Burden
Credit card payments often lack detailed remittance information. Your team could spend extra hours reconciling payments and matching them to Explanation of Benefits (EOBs). That’s time better spent on patient care—not chasing down payment details. - Compliance and Security Risks
Accepting credit card payments from insurance companies introduces PCI compliance requirements and increases exposure to fraud. Why take unnecessary risks when EFT offers a secure, industry-standard solution if the practice prefers to get paid electronically?
How to Opt Out of Credit Card Payments
- Contact Your Insurance Provider: Call the payer’s provider relations department and request EFT or check payments instead of virtual credit cards. You are not legally required to accept a payment via credit card from an insurance company.
- Submit a Written Request: Many insurers require a formal letter or email stating your preference for EFT.
- Enroll in EFT Programs: Most major insurers offer secure EFT enrollment online—sign up to ensure direct deposits.
- Document Everything: Keep records of your requests and confirmations for compliance and future reference.
A Final Note on EFTs
While Insurance EFTs are a better alternative to payments via credit card, they can come with their own set of issues. Often, there can be significant timing differences between when the EFT shows up in the practice checking account and when the EOB becomes available. This can make it harder for the front office team to timely and accurately record payments within the practice management system. So, if accepting EFTs from insurance companies has you concerned, you could request to receive payment via paper check.