Post Payments via Third-Party Financing Types

Practices when accepting patients with third party finances will incur transaction charges. In such instances, CareStack makes it possible to track and manage the processing fees as you process payments using third party financing.

Please note that CareStack offers direct integration with Sunbit and supports accounting for other clinicians like CareCredit, Alphaeon, Wells Fargo, LendingClub Patient Solutions, Proceed Finance, GreenSky, iCare, and Direct personal loans. 

Topics Covered

• Add a New Third Party Financing Payment Type
• Process a Third Party Financing Payment
• Manage Third Party Financing

Add a New Third Party Financing Payment Type

The first step in tracking these transaction charges is to create a Payment Type that identifies the fee.

To add a Payment Type, perform the following steps:

• Navigate to the System Menu > select Practice Settings > Payments & Billing > General.
• Under the Payment Types tab, click + Add Payment Type.

Enter the necessary information for the Payment Type on the right-hand side.

• Payment Type Name: Here you can select the payment name that makes it easy for you to understand at the time of posting a payment.
• Category: Select a payment method it can be Cash, Cheque, Credit/Debit Card, Direct Transfer, Special Credit, or Third-Party Financing.
  • Choose Third-Party Financing, this will automatically turn on the transaction charges.
• Transaction Charges: You can enter the transaction charge for posting the payments via third-party finances.
• Reference No: A Reference number is included in the transactions as a method of identifying and searching for a transaction.
  • Primarily used for card payments in insurance transactions.
  • Click on the toggle to enable or disable it.
• Include Payment Type In: Select the sections where you want the Payment Type to be listed among the Payments and Refund options.
• Click Save.

• A toast notification will appear on the top-right stating, 'Payment type added successfully'.

To Edit Payment Type:

• Select the intended payment type from the left and click Edit.

• Make the necessary changes and click Save.

Note: CareStack will only calculate the transaction charges for Patient Payments.

• Once your Payment Type is established, you can select it as your Process Payments.

Adjustment Codes: CareStack already includes a system-level adjustment code called TRNCH for Transaction Charges that will reduce the patient portion by the amount of the charge when applied.

Process a Third Party Financing Payment

While adding a third-party payment, transaction charges will be generated. Perform the steps below to add a third-party payment and post the transaction charges to the required code(s).

To start processing a payment:

• Search for the Patient using the Global Search Bar.
• Select the Payment quick link.

To process a Third Party Financing payment with a transaction fee:

• On the  Add New Payment/Adj. tab review or update the Payment Amount, Payment Location, and Payment Date as needed.
  • Enter the full payment amount owed by the patient, CareStack will automatically calculate any adjustments.
• Select the desired Third Party Financing Payment Type.
  • CareStack will calculate the Transaction Charge based on the Payment Type that is set and the Payment Amount.

Many clinics add several third-party payment types in Practice Settings because transaction charges can vary for each customer. Please note that after adding a payment type, you can change the transaction charges when adding a receipt in the Payment slide-out. This helps clinics update fees for different financiers following discussions with the CareStack support team..

To Edit Transaction Charges for the selected Payment Type,

• Click Edit Trans. Charges.

• Enter the new Trans. Charges percentage.
• Click the checkmark.

Distribution of transaction charges among the selected codes depends on 3 use cases.

Use Case 1

• When a third party covers the full payment amount, the associated transaction charges are evenly distributed across all selected codes.
• For example, if the transaction charge is 10%, it will be equally allocated among all the selected codes.

• When the third party finances only a part of the total amount, for example, if the patient balance for the selected codes are £700 but only £300 is financed, then the transaction charges are applied based on the selected allocation method.
  • Choose to apply to Oldest First or Newest First.
    • Oldest First: Transaction charges are applied starting with the earliest (oldest) codes until the financed amount is fully covered.
    • Newest First: Transaction charges are applied starting with the most recent (newest) codes until the financed amount is fully covered.
  • Based on the selected choice, transaction charges will either be assigned to specific codes or spread across multiple codes.

Use Case 3

• When only a part of a treatment plan is checked out, for example, if the total proposed amount is £900 across 3 codes, but the patient checks out only 2 codes and the remaining code is carried forward to a future appointment.
  • The unapplied transaction charges will be carried forward.
  • Ensure to click Add Receipt & Apply.

To view the transactions in the ledger,

• Hover over Billing > select Ledger.

You can view the transaction charges on the patient receipt within the Patient Ledger.

• Patient Receipt: In CareStack, a patient receipt of third party financing is a detailed record of a payment made by the patient. It includes the payment amount, transaction charges, and the full history of the receipt.

Manage Third Party Financing

• Select the patient using the Global Search bar.
• Navigate to Billing > Payments.

• Select Manage Credits from the Payments slide-out.
• Select the intended Receipt.
• Select the Codes.
• The same percentage of the transaction charges in the receipt will be applied to the selected codes, based on the unapplied credits available. 
• Click Apply payment.

To edit receipt details including the transaction charges,

• Click the intended receipt.

• Click Edit Payment Details.

• Make the required changes for Total Payment Amount, Transaction Charges, Location, Payment Date and Remarks, as needed.

Note: Total Payment Amount cannot be less than sum of Applied Credits, Refunds, and Adjust Off's.

• Click Save.

To view the transaction charges,

• Select the intended receipt.

• Select Transactions on the left.
• Click the Transaction Charges tab.
• Here, you can view, edit, or reverse the transaction charges, as needed.

To refund the amount involving third party financing,

• Select the intended receipt.
• Select Refund.
  • The selected refund will now include the transaction charges.
  • Click the pencil icon to edit the transaction charges if you want to do a partial refund.
  • You can either click Refund and Print or Refund as required.

Practices can utilise this simple article for posting payments via third-party finance payment types.