Telemedicine has been around for a while. That said, its use and convenience have recently grown exponentially, partially due to the pandemic, though countless other factors are at play. In a recent 12-month period, almost 40% of adults used telemedicine services to some degree or another. The migration of many healthcare services to remote management has countless benefits, both to the industry and to patients, but it also presents some challenges.
The Health Insurance Portability and Accountability Act (HIPAA) regulation was put into effect in 1996 to address the challenge of maintaining the confidentiality of sensitive patient records and data. Primarily created to protect doctor-patient confidentiality, by extension, HIPAA governs other aspects of telemedicine, including payment processing.
How does HIPAA affect payment processing specifically?
Many common digital payment services, such as PayPal or Venmo, do not qualify for payments in the remote healthcare industry because they do not comply with HIPAA regulations. To stay legally compliant, telemedicine providers need to choose payment processing methods that safeguard sensitive patient information. HIPAA-compliant payment processing must guarantee that info is not exposed to vulnerabilities during patient data use, transfer, or storage. The fines for violating HIPAA can range from $100 to $50,000, depending on a merchant’s culpability.
HIPAA-compliant payment processing methods.
Despite the strict requirements of HIPAA compliance, there are a variety of ways to accept payments and still meet the industry standard of confidentiality. However, there are both pros and cons to some of these available methods.
Payment by phone.
Credit card payments can still be made over the phone, and this method can be processed in ways that are HIPAA compliant. While this is perhaps a payment method that certain demographics may be accustomed to, it carries the risk of human error and has one of the highest rates of failure.
Payment via mail.
Remote healthcare providers can invoice their clients by mail, providing patients with the means to make payments by check via postal services. While effective, this payment processing method can be slow and cumbersome and doesn’t offer the option to accept credit card payments.
Digital payment methods.
The most efficient and secure method of processing payments is through a payment technology partner that uses secure payment gateways and offers reliable and affordable merchant accounts for telemedicine. Their platform will process payments to your merchant account from client accounts or cards via an encrypted, secure gateway, which ensures HIPAA compliance.
Choosing a dependable merchant services partner.
Humboldt Merchant Services has more than three decades of experience as a high-risk payment technology partner, offering secure and reliable payment processing services, merchant services, and more. Our products include a full-service payment gateway that can be customized to the specific needs of telemedicine providers. Contact Humboldt today to explore the solutions available for your healthcare service.
