Advantages of Using Electronic Funds Transfer (EFT) for Third-Party Prescription Payments
Technology plays a vital role in just about every aspect of our daily lives. The handling of money is no different. Money exchanges seamlessly everyday between banks, businesses, and people in a variety of ways. Most of these exchanges are handled through Electronic Fund Transfer (EFT).
EFT is a method of automated money transfer from one account to another without the direct involvement of people or paper. EFT is quickly becoming the preferred method of payment for many businesses, (Kingatua, 2018).
The use of EFT by third-party payors for the payment of pharmacy claims greatly benefits a pharmacy’s daily operational demands. The seamless transactions improve cash flow which allows for more managed control of the financial aspects of the business.
Receiving EFT payments from payors gives you better financial control, and offer these additional advantages:
- Shorter payment periods. Money from third-party payors is typically received 20 days after the adjudicated claim. Using EFT could shorten this time, giving you access to your money faster.
- Reduction in fraud opportunities. All EFT transactions are encrypted and offer increased security from breaches. In addition, payments are easier to trace if one does end up missing and since payments are made electronically pharmacies don’t need to worry about losing or misplacing a paper check.
- Flexible and convenient. With EFT, there may be significant savings in manual tasks for banking needs such as depositing paper checks. It’s also environmentally friendly with reduced paper waste and expense.
The ease and cost of EFT gives tremendous advantages to those who utilize the service. However, navigating each payor’s set-up requirements can be complex and time consuming. Pharmacies need to locate the correct documents, understand the various form requirements, send the documents to each payor, and track setup completion.
At Net-Rx, we maintain the most up to date requirements and documents from each payor, provide set-up packets specific to the vendors you bill, and assist with processing the paperwork. Our goal is to help drive each pharmacy’s optimum financial performance. EFT is just one piece of the puzzle. Let us help you achieve a firm foundation in all aspects of the business. If you currently receive your third-party payments through the mail by check and would like to set up EFT services for your pharmacy, contact us today!
Gaille, L. (2020). 17 Advantages and Disadvantages of an Electronic Funds Transfer. Vittana personal fiance blog.com, 1.
Kingatua, A. (2018). What is Electronic Funds Transfer (EFT), uses and benefits. Electronics, Information & Communications Technology , 1.