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 providers like CareCredit, Alphaeon, Wells Fargo, LendingClub Patient Solutions, Proceed Finance, GreenSky, iCare, and Direct personal loans. To learn more about Sunbit, click here.
Topics Covered
Add a New Payment Type
Watch this video for a concise summary.
If you are aware of the base transaction fee percentage for Sunbit or CareCredit, you can enter it when adding a new payment type through Practice Settings. If not, you can update the specific transaction charges while adding the third-party receipt.
Let's explore how to add a new payment type.
- Navigate to the System Menu > select Practice Settings > Payments & Billings > General.
Click + Add Payment Type.
Enter the necessary information.
- Payment Type Name: Enter the desired payment type name.
- Category: Select 'Third Party Financing' from the Category drop-down list; this will activate the transaction charges.
- Transaction Charges: Enter the transaction charges percentage agreed with the third-party financier.
- Additional Fields Required: Enter the respective Reference Number when the payment is applied to the patient, insurance, or collections.
- Select the sections where you want the payment type to be listed.
- Click Save.
Third Party Financing
Explore this video for an in-depth walkthrough.
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).
- Select the Patient using the Global Search bar.
- Navigate to Billing > Payments.
To process a Third Party Financing payment with a transaction fee,
- Click Add New Payment/Adj.
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Select the intended codes.
- The Payment Amount, Payment Date and Payment Location will be prefilled.
- You can edit the details as needed.
- Select Payment Type as Third Party Financing.
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.
Use Case 2
- When the third party finances only a part of the total amount, for example, if the patient balance for the selected codes is $700 but only $300 is financed, then the transaction charges are applied based on the selected allocation method.
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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.
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Choose to apply to Oldest First or Newest First.
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.
In the following example,
- The $753.36 receipt is the amount of money that will be deposited in your business bank account from Sunbit.
- The $14.13 transaction charge is the amount of money collected from the patient but would not reflect in the business bank account.
Manage Third Party Financing
Watch this video for a comprehensive walkthrough.
- Select the patient using the Global Search bar.
- Navigate to Billing > Payments.
- Select Manage Credits from the Patient 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.
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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 the sum of Applied Credits, Refunds, and Adjust Offs. - 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.
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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 use this simple guide to learn all about adding a third-party payment, managing credits for third party payments, and understanding how transaction charges are posted in CareStack.