Electronic funds transfer is a safe and low-cost alternative to accepting virtual credit cards or paper checks for claim payments, according to the American Dental Association’s EFT implementation checklist.

Some third-party payers use virtual credit cards as a way to reduce their own administrative expenses, but this payment method comes at additional costs to dentists. Dentists typically have to pay a merchant fee of 2-3% and transaction fee of 10 cents for claim reimbursements made by virtual credit cards, so a $1,000 reimbursement would cost them about $20.10. Alternatively, the same reimbursement via electronic funds transfer would cost only $0.34 in fees.

Sara Stuefen, DDS, chair of the ADA Council on Dental Benefit Programs’ Dental Benefit Information Subcommittee, began accepting EFT payments several years ago.  

“We made this decision because EFT payments are faster and safer — no waiting for a check to come in the mail and no worrying about the check getting misplaced in the office, in the mail or on the way to the bank,” Dr. Stuefen said. “EFT payments have benefited my practice by accelerating our turnaround for claim payment. This helps keep receivables low in our office.”

Her practice still accepts checks for claim payments, but she chooses to receive payments via electronic funds transfer when given the option. However, her practice does not accept virtual credit card payments, and third-party payers cannot require dentists to accept this reimbursement method.

The ADA’s EFT implementation checklist highlights these advantages and offers steps dentists can take to begin accepting EFT payments in their practices, from researching how electronic funds transfer works and preparing their implementation plan to completing training, software changes, banking arrangements and enrollment with payers to get started.

An ADA webinar, Decreasing Costs and Improving Efficiencies in Your Practice is Easy as EFT, also provides helpful information for dentists looking to use electronic funds transfer for claim payments. The checklist, webinar and other resources are available at ADA.org/dentalinsurance. 

“Accepting EFT payments does take some initial adjustment of your systems, but once in place, you will find that it is well worth it,” Dr. Stuefen said. “It's a fast and safe method of payment.”