#digital payment gateway

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Kicking off a new blog is always exciting, and I’m honored to author Onbe’s inaugural post in what promises to be a dynamic forum for thought leadership from experts across our organization. This moment is especially important to me because it’s a chance to take stock after the whirlwind of the past few months: building and launching a powerful new brand positioned to lead within the ever-transforming payments industry.

The convergence of marketing and payments is in my DNA. I got my start in payments in 1999 at Parago, and I still remember the first rebate check I signed by hand. Early in my career, I saw the opportunities open-loop payment cards could deliver, including custom branding, added convenience for the recipient, and insights that help brands learn about their customers. Payments have come a long way since then, with a growing focus on digital to thank for the innovations modern businesses have at their fingertips—like virtual payments that deliver funds into recipients’ hands in seconds.  

When I tell the story of Onbe, the word “serendipitous” comes to mind. Not to downplay all that goes into envisioning and launching a new brand, but there was something special in the air when the opportunity arose to merge two industry leaders, daVinci Payments and North Lane Technologies, and create a unified payments technology company. The right people connected at the right time. The perfect mix of products, expertise, and passion came together to become something bigger than the sum of those parts.

Patient refunds are on the rise, and healthcare payers and providers should do their part to ensure the experience goes smoothly. Offering digital payment options alongside checks is not only more expedient and cost-effective but provides a better customer experience and helps to reduce the instances of unclaimed funds.

By: Tony McGee, Senior Director, Market Management

Going to the doctor (and paying for it) can be a stressful experience. So, when patients are owed a payment—whether it’s a medical refund, Medical Loss Ratio (MLR) rebate, or wellness incentive—healthcare payers and providers should do their part to ensure the experience goes smoothly.

For most consumers, smooth means digital. According to McKinsey & Company, 89 percent of Americans use digital payments, and they seek new ways that modern payment options can make their lives easier. By adopting digital-first solutions for making payments at scale, healthcare organizations can streamline their back-of-house payment processes while delivering faster, more convenient and secure recipient experiences.  

Improving the Healthcare Refund Experience

Patient refunds are on the rise, totaling $3.1 billion in 2022. The biggest reason is that healthcare billing is fraught with complexity, making errors commonplace. If healthcare organizations incorrectly estimate the patient’s responsibility, they must provide a refund following the insurer’s adjustment.  

But for many healthcare organizations, the medical refund process creates even more room for error. 74 percent of patient refunds are sent by check, according to advisory group Aite-Novarica. Checks can cause friction for recipients if the payment is delivered to the wrong address, lost or stolen, or if the recipient is unbanked. For organizations, checks are an especially costly way to issue a high volume of payments, with each costing anywhere from $3 to 12 dollars when all expenses—from administrative labor to postage—are factored in. And if recipients don’t cash their refunds, the healthcare organization is responsible for escheatment, the process of turning over unclaimed property to the state.  

Offering digital payment options alongside checks is not only more expedient and cost-effective but provides a better customer experience and helps to reduce the instances of unclaimed funds. Going digital is also a chance to curtail check fraud, which leads to billions in losses every year. 63 percent of consumers believe digital payments are more secure, according to Onbe’s 2023 Future of Payments survey. Providing choices such as virtual or physical prepaid cards, push to debit—and, yes, traditional checks or ACH for those who want them—lets patients choose the refund method that works best for them.  

Encouraging New Behaviors with Wellness Incentives

With healthcare costs on the rise, driving healthier behavior—whether it’s scheduling an annual wellness checkup, getting vaccinated, or exercising more—has become a priority for everyone from healthcare payers to public health organizations. In 2022, less than half of large firms offering health and wellness programs said their programs were effective at improving the health and well-being of enrollees, according to the Kaiser Family Foundation. But just 40 percent of large firms paid workers an incentive to encourage healthy behaviors, suggesting that more could be done to help program participants prioritize their health.  

Findings on the role of incentives in health plans suggest that not only are rewards crucial to improving healthcare outcomes, but they work best when they offer value beyond the dollar value of the incentive. That includes letting recipients “shop” for their preferred incentive choice. When organizations ranging from employers to healthcare payers want to encourage healthy behaviors, creating incentive experiences that offer payment choice, instant gratification, and a seamless, digital-first experience could help improve participant engagement and retention. Especially now that many consumers prefer to use payment apps and mobile wallets, adding more options for participants to access and spend their incentives could help drive program success.

Overcoming Barriers to Payment Choice

When handling billing and collections, most healthcare organizations are equipped to accept digital payments. But when paying patients and customers, these same organizations typically lack the technology and infrastructure they need to meet diverse payment preferences. That’s where partnering with a fintech can help with the heavy lifting. By partnering with a payments expert, healthcare organizations can offer a better experience for recipients while removing the burden from back-office staff. They can save money on check processing, hand off the risk and responsibility of managing unclaimed property, and reduce the risk of payment fraud by taking advantage of the latest intelligent monitoring solutions in the industry. And they can deliver innovative payment experiences that increase recipient satisfaction, drive healthy behaviors, and give recipients the power to choose their preferred payment method.  

The healthcare landscape is unlikely to become less complex anytime soon. But partnering with a fintech that specializes in handling payouts can help to simplify one piece of the puzzle: delivering positive payment experiences for both your recipients and your team.

To learn more, view our fact sheet, 5 Things to Know About Patient Refunds.

Original Source: https://www.onbe.com/post/how-healthcare-orgs-can-evolve-their-payment-strategy-and-improve-recipient-satisfaction

While economic uncertainty can be worrying, times of change bring the chance to innovate, optimize your business processes, and discover new sources of revenue. If your business routinely makes disbursements to customers and workers, upgrading your payment strategy is an opportunity you might not have considered.

In part two of this series, the Onbe editorial team spoke with Damien Glista, Vice President of Relationship Management and Sales at Onbe, to glean insights from his 16 years in the payments industry. Glista shared ways that adopting modern, digital-first payment solutions can save time and labor, unlock cost savings, and reduce risk while improving the payee experience.  

The High Cost of Check Processing

For most businesses, making a payment means cutting a check. While it sounds simple, issuing paper checks becomes complex and costly when a high volume of payments is involved—think consumer refunds, rebates, or salesperson incentives. “Check processing is a big job for accounts payable teams,” Glista explained. “Then, since not every recipient will cash their check, staff end up spending many more hours either resending checks or filing unclaimed property reports.”

Paper checks don’t just mean an administrative hassle; they can result in steep costs for payers, generally in the range of $3-12 per check. “You have to factor in not only the cost of paper and postage, but the expense of dealing with checks that weren’t cashed,” said Glista. “Each state has different rules and regulations for handling unclaimed property, and getting it wrong could lead to steep fines. Many businesses don’t realize how much they could save by switching to a third-party payment solution.”

Partnering with a payments fintech lets businesses hand over or automate most of the administrative labor involved in managing payment programs, plus gain access to more efficient payment solutions, such as virtual cards. “You not only can reduce the work involved in making and reconciling payments, but you can switch to faster, digital and electronic payment methods that eliminate the costs of printing and delivery,” said Glista.

Fraud Management: A Steep Administrative Burden

Working with a payments partner can also eliminate the burden of handling fraud—and help reduce fraud activity through a proactive approach. 63% of organizations reported check fraud in 2022, according to the Association for Financial Professionals (AFP). “Whenever fraud occurs, your team needs to void and reissue the check, alert the bank, and file a claim with your company’s insurance provider,” says Glista. “Depending on the scale of your payments operation, that could turn out to be an enormous lift.”

Through a payments fintech, businesses could reduce fraud with a combination of A.I.-enabled fraud detection solutions and modern, digital payment methods that come with less fraud risk. “At Onbe, we not only have the latest tools and capabilities to combat fraud, but we assume all responsibility for fraud on behalf of our clients,” says Glista. “Even if you have the expertise to prevent and mitigate fraud in-house, at the end of the day, most businesses are better served by handing over the risk, altogether.”

Unlocking Time and Opportunities

Offloading fraud management and other administrative processes saves businesses hours per week. “With a lighter burden, your staff can spend more time on higher-value activities,” said Glista. “Ultimately, that could lead to uncovering new ways for your business to innovate and drive efficiency.”

Using a corporate payouts gateway also improves the experience for payees, resulting in a more engaged and loyal base. “Paying primarily by check comes with frictions for recipients as well as your business,” said Glista. “These range from delivery issues if your recipient changed addresses to a lack of options for underbanked consumers. And the costs to you could be anything from customer service escalations to the loss of a customer.” The majority of consumers prefer digital payments to checks and want to be able to choose their preferred payment method, according to Onbe’s 2023 Future of Payments survey. Glista explained, “Using a payouts gateway to switch from checks to more cost-efficient, in-demand payment choices is a win for your back-office team, your recipients, and your bottom line.”