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Yet another thing they don't teach in school are these "virtual payments" that are offered by 3rd party companies as a "convenience" but really are just another way to delay and/or decrease total compensation to providers. Companies such as VPay (www.vpayusa.com) get contracted by insurance providers to offer alternative ways to pay (read: screw) providers. They pitch it as a faster and more secure way to do business, but really it is just another way for providers to get squeezed by processing fees and even lose out on money they earned because the cards expire, get lost, providers don't know they have $ still out there, etc.
Instead of receiving a paper check or ACH payment, you get sent paperwork w. a CC number printed on it. You input that # into your credit card processing to get paid. Of course, you are paying the 2.5%-4% processing fee, which goes back to the parent company of VPay.....VISA; so they double dip getting paid by the insurance company and then again by the provider. Some argue that VISA created this as another way to skim the processing fee FROM EVERY DOLLAR you bill through the applicable insurance company. There are expiration dates and other fees that could also apply, so if you don't process the payment, it could expire like a gift card. The other fees are difficult to track down bc VISA and VPay have flooded the internet w. fluff pieces and pay-for-play articles talking about all of the "advantages" of this approach....when really it is just another way to squeeze you for money.
These "convenience" programs have been around for years and too many providers get suckered into them and needlessly giving away $. I recently received some payments via this method and just to access MY OWN MONEY...it would cost me $150-$200 for that convenience. Thanks but no thanks VPay.
To opt out of VPay you need to listen to their pitch as to why VPay is preferred by providers (it isn't). The rep I spoke to said he knew of 5 open cases of fraud....but much like claims of voter fraud, the total # of cases (aka all processed payments) are well into the 7-9 figures...so the overall % is TINY, but "fraud" is one of their biggest reasons they cite for offering the "program". Now i have to wait weeks for my payments to be "re-processed", printed, and mailed....after already waiting 3-4wks for the original processing, another week for printing, and another week for mailing. Every provider can do what they want, but it's important to know the cost of doing business w. these virtual payments.
Instead of receiving a paper check or ACH payment, you get sent paperwork w. a CC number printed on it. You input that # into your credit card processing to get paid. Of course, you are paying the 2.5%-4% processing fee, which goes back to the parent company of VPay.....VISA; so they double dip getting paid by the insurance company and then again by the provider. Some argue that VISA created this as another way to skim the processing fee FROM EVERY DOLLAR you bill through the applicable insurance company. There are expiration dates and other fees that could also apply, so if you don't process the payment, it could expire like a gift card. The other fees are difficult to track down bc VISA and VPay have flooded the internet w. fluff pieces and pay-for-play articles talking about all of the "advantages" of this approach....when really it is just another way to squeeze you for money.
These "convenience" programs have been around for years and too many providers get suckered into them and needlessly giving away $. I recently received some payments via this method and just to access MY OWN MONEY...it would cost me $150-$200 for that convenience. Thanks but no thanks VPay.
To opt out of VPay you need to listen to their pitch as to why VPay is preferred by providers (it isn't). The rep I spoke to said he knew of 5 open cases of fraud....but much like claims of voter fraud, the total # of cases (aka all processed payments) are well into the 7-9 figures...so the overall % is TINY, but "fraud" is one of their biggest reasons they cite for offering the "program". Now i have to wait weeks for my payments to be "re-processed", printed, and mailed....after already waiting 3-4wks for the original processing, another week for printing, and another week for mailing. Every provider can do what they want, but it's important to know the cost of doing business w. these virtual payments.
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