As a dental provider, you work hard to provide quality care to your patients—and you deserve to be paid promptly and fairly. But if you’ve received claims payments via virtual credit cards (VCCs), you’ve probably noticed the 3–5% merchant fees that come with them. Understandably, you might be asking:

“If I’m paying these processing fees, is the insurance company also profiting from them?”

The answer is a bit nuanced—but important to understand.

Who Actually Gets the Merchant Fees?

When you accept a virtual credit card payment, the merchant fee you’re charged goes to several parties in the payment processing chain, including:

• The credit card network (like Visa or Mastercard)

• The payment processor (the company handling the transaction)

• Third-party vendors (like Zelis or VPay) who manage the virtual card program

So, the insurance company does not directly receive your merchant fee. However...

Do Insurance Companies Still Benefit? Yes—Indirectly.

While insurers don’t charge the fee themselves, many have agreements with the payment vendors to receive rebates or revenue shares from the processing fees collected from you. In effect, that means they do benefit financially when you’re paid via VCC—even if it’s not directly coming from your pocket to theirs.

This setup creates a situation where:

• You’re penalized with a fee for getting paid.

• Insurance companies may profit from the method they chose to pay you.

• The VCC vendor gets a slice of the fee for facilitating the payment.

Why It Matters

On a $2,000 claim, a 3% merchant fee costs you $60. Multiply that across dozens or hundreds of claims, and you’re looking at thousands of dollars lost annually—just to access money already owed to you.

And because VCCs are often the default payment method, many providers don’t realize they can choose a better option.

You Have the Right to Opt Out

Under HIPAA administrative simplification rules, you have the right to request an electronic funds transfer (EFT) via ACH—which typically carries no or minimal fees.

Here’s what you can do:

1. Contact the insurer and formally request to opt out of VCC payments.

2. Ask to be paid via ACH/EFT instead.

3. Document your communication in case of resistance or delay.

You can also consider reaching out to your dental association or a healthcare attorney for template letters or legal support.

Final Thoughts

While insurers might not take the merchant fee directly, they’re not neutral players. The current VCC system puts a quiet financial burden on dental practices—one that adds up quickly. Understanding how these fees work and advocating for a better payment method is one small step toward keeping more of your well-earned revenue where it belongs: in your practice.

Benjamin Tuinei

Founder - Veritas Dental Resources, LLC
Phone: 888-808-4513

Services:
PPO Fee Negotiators | PPO Fee Negotiating | Insurance Fee Negotiating
Insurance Credentialing | Insurance Verifications

Websites:
www.VeritasDentalResources.com | www.VerusDental.com