What the authorization should say
- What the card may be charged for and any per-charge limit
- How and when the patient will be notified before a charge
- How to update or revoke the card
- How disputes and refunds are handled
Security basics
Store cards only as tokens through your processor or software. Never write card numbers down or keep them in notes fields. Limit who can initiate charges and review a log of card-on-file charges regularly.
Handle failures and expirations
Expired and declined cards are common. Decide how many retries, when to notify the patient and when the balance moves to standard statements.
Run the numbers
Patient or customer charges billed per month.
E.g. your line-of-credit rate.
Days to collect today
46 days
Cash freed at 30 days
$61,644
Yearly carrying cost
$16,200
Expected uncollectible
$9,000
Days outstanding = A/R ÷ average daily charges. A simplified view — insurance timing, payment plans and write-off policy all affect real collections.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a payments specialistCommon questions
Can we charge without telling the patient?
Follow your authorization and card-network rules. Advance notice is good practice and reduces disputes.
Does card-on-file reduce A/R?
It can shorten the time from insurance payment to patient payment. Measure days to collect before and after.