DataPath, Inc. recently published a whitepaper that identifies and assesses the hidden risks of payment processing and suggests a remedy that addresses these serious concerns. The chief problem, which leads to many subsequent complications, is the involvement of multiple parties in the insurance payment process. The convoluted process needs a solution that is more flexible, efficient, and secure.
In a traditional insurance payment process from insurer to provider, there are numerous specialized companies involved: insurers, employers, banks, TPAs, program managers, and card processors. Each entity is party to the larger transaction and brings with it logistical complications, security issues, and budgetary considerations. For instance, the amount of times money and sensitive information changes hands is troubling, especially considering 62 percent of financial professionals have been targeted with payment fraud in 2014. This is just one primary concern, among many, in the insurance payment market space.
The whitepaper argues that a viable solution to these overwhelming issues is an end-to-end payment and card processor, run by a single company. The suggested remedy can improve efficiency, security, accountability, reporting, and lowers overall costs since an end-to-end card processor is capable of handling all facets of the payment process, from receiving the data file to disbursing the funds.