DataPath, Inc. recently published a white paper that assesses the benefits of an end-to-end CDH card processor in the consumer directed healthcare market and suggests a remedy that addresses these critical concerns. The chief problem is the involvement of multiple parties in the payment process, which results in myriad complications for all parties. This convoluted process needs a single vendor solution that is more flexible, efficient, and secure.
There’s been a seismic shift in the healthcare market with the rise of CDH accounts in the late 20th century and the evolution in payment methods as more and more people are eschewing cash and checks for debit and credit cards. However, the card payment process is burdened by the numerous specialized companies involved: 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. Among the many areas of concern in the CDH payment market space is fraud-related theft, which costs billions of dollars each year and rapidly dwindles profit margins for the associated parties.
DataPath’s think piece argues that a viable solution to these overwhelming issues is an end-to-end CDH 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 card issuance and funding to disbursing the funds.