The issue of using a virtual credit card for insurance payments has not only become a frustrating situation for the dental practice, but also costs the office money they don’t need to be spending. My friend and colleague, Jennifer Schultz, who is owner of The Virtual Dental Office Manager, is also having the same issues with her offices. She recently wrote an article on the same topic, CLICK HERE to read it.When I received one of these virtual credit cards for an insurance payment, I was like, “What the h*%# is this and how am I suppose to post it?” Since I needed my deposit slip to balance with payments and credit cards, I ended up posting a $0 payment to the claim and adding a note in the claim status notes that it was a credit card payment and how much it paid on the claim. Then I posted it as a credit card payment and also made a note in the payment that this was an insurance payment. If it is not critical for your office to balance the credit card total on the Dentrix deposit slip with your credit card batch, then you could post the virtual credit card as an electronic payment and then make a note on the claim that it was a credit card. What a pain!
I would highly recommend you try and opt out of this method of insurance payments because it is costing your office a merchant fee of 2-4% of the total payment that you don’t need to be spending. This could add up to hundreds of dollars per month of unnecessary fees for the practice.
You can opt out of this payment method by calling the insurance company and asking to be removed from this method of payment. See if you can opt for a direct deposit instead. After you have opted out with the insurance company, make sure you follow up with the merchant that issued the credit card payment to see that it was done. Hopefully by making these two phone calls, you can avoid these virtual credit card payments in the future.