If you signed up for our newsletter, you probably have heard us discuss the importance of secure electronic payments. If you aren’t using third-party payment processing yet, it is time for you to consider the benefits it can provide your business. On the surface, third-party payment processing may seem like an unnecessary layer in the payment process. However, these payment processors decrease the time it takes to get paid, provide security with complete records of transactions, and increase cash flow.
Here’s what you need to know about the benefits of third-party payment processing, courtesy of Medical Business Management’s Controller, Kevin Boothe.
What is a third-party payment processor?
A third-party payment processor is a company contracted by insurance companies to issue payments on behalf of the insurance company. Most insurance companies that contract with third-party processors do business with commercial payers, not individuals. You have likely already dealt with third-party payment processors if you deal with commercial payers regularly.
How does the payment process work with a third party?
Electronic payments from third-party processors are deposited electronically into your bank account. Typically, the payment is received five to seven days sooner than non-electronic payments. On average, the fee associated with this service is 1.99% of each payment, but this percentage varies based on the processor.
What is the most significant benefit of using third-party payment processors?
The most significant benefit is being paid sooner. You don’t have to worry about lost or stolen checks with third-party payment processors. These companies provide a single source for billing and follow-up issues, providing security through complete transaction records. Overall, third-party payment processors increase cash flow and stabilize your revenue stream.
See how outsourcing other parts of your billing provides game-changing benefits here.
How to get started with third-party payment processors
At Medical Business Management, we focus on turning your anesthesia services into a reliable revenue. Adding third-party payment processors to the mix is one of many ways we can help automate your revenue stream. With over thirty years of experience partnering with anesthesia providers, we have the expertise it takes to help your business succeed so that you can focus on your patients.
For more questions or to discuss how we can help automate your revenue stream, give us a call!