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Published November 01st, 2016 by

5 Crucial Reasons Why Hospitals Should Have Merchant Services

5 Crucial Reasons Why Hospitals Should Have Merchant Services

Back in the old days of human civilization, people receive goods through the use of the barter system. In those times, any commodity can be used as money in exchange for other products. With the rapid modifications in technology, various industries had developed and money had encountered different stages of evolution.  From the use of commodity to metallic money, paper money was invented. Today, plastic money in the form of credit cards and debit cards is now the trend.

The numerous advantages of the use of credit and debit card led to its proliferation. Most industries of today now allow the use of plastic cards in the transaction. Because of the competition in business, companies need to be up-to-date with the latest trends. Our generation is now moving towards a cashless society.

Businesses which stubbornly stick to old ways remain stagnant and are in for a lot of problems in the near future. They are comparable to dinosaurs which suffered extinction because they failed to adapt to a vastly changing climactic environment as hypothesized by some paleontologists. It is a well-known fact that in order for a business to thrive, adaptation to changes is necessary.

Hospitals and medical centers are not excused to the need to adapt to change. Despite the increasing number of patients who are seeking medical treatment, there is still a possibility that the business will die. As stated by Charles Darwin, it is not the strongest or the wittiest of the species that survives but the one who is flexible to adapt to change. According to Professor Richard Foster of Yale University, “the average lifespan of leading US companies decreased by more than 50 years in the last century, from 67 years in the 1920s to just 15 years today.” If medical center owners will become hard-headed as dinosaurs in resisting change, they might fail to survive the healthcare industry.

In line with this, the number of hospitals utilizing merchant services is now growing. They now allow patients to pay electronically using their credit or debit cards. In addition to modern facilities and state-of-the-art technology, hospitals are now providing top merchant services to customers.

Here are some of the benefits of using merchant services to hospitals and medical centers.

Customer Convenience

Customers, especially the sick patients, want comfort. Patient satisfaction will be decreased if hospitals fail to address the needs of their patients. It would be very disheartening for a sick patient to fall in line and wait for a period of time in the hospital’s cashier before a procedure will be executed.

Moreover, convenience creates loyalty. Even though there are lots of other hospitals nearby, some patients still choose to travel for some time just to seek treatment is a hospital which offers a higher quality of services and convenience of having what they need. No wonder why Amazon is successful being the largest internet-based retailer because the company had taken convenience to the next level by providing customers with one-stop-shop services.

With merchant services, patients no longer need to wait for a long period of time just to pay for medical services. In some hospitals, room services are also offered to patients who are too weak or who do not have the capability to pay in the cashier. Because time and money are directly correlated in business, giving utmost importance to customers’ convenience is vital to the success of your company. The convenience factor is your edge from the multitude of competitors.

Improve Sales

The simple act of accepting electronic payments can improve business significantly. In a research conducted by D. Prelec and D. Simester of Sloan School of Management, it was revealed that when customers are allowed to use credit cards, there is a higher rate for them to pay willingly. Moreover, in a survey conducted by Intuit Inc. Go Payment, they found that “83% of businesses that accept credit cards make more sales with 52% making at least $1000 more per month and 18% making $20,000 more per month.”

Merchant services providers do not restrict customers to what is in their purse at the time that they are seeking medical help. Because plastic cards make it easy for customers to purchase services, patients can spend more for their treatment. For instance, instead of requesting for urinalysis alone, doctors can request for additional tests like culture and sensitivity for more specific findings and accurate diagnosis. Patients will no longer need to worry that they do not have enough funds in their wallets.

In conjunction with convenience, the use of top merchant services boosts sales because customers are not restricted form undergoing procedures and other health services. Moreover, merchant service plastic cards are increasing customer base when a satisfied patient tells family or friends about the positive experience he/she encountered. Attracting and keeping customers will definitely increase your customer base. The more customers you have, the higher the revenue will become. Though we are not wishing for more customers to get sick, we are aiming for more clients to seek healthcare services that will promote health, prevent diseases, and aid in early detection of illnesses.

Enhanced Money Management

Because of the competitive business environment, hospitals should provide the patients with choices to pay their medical bills. The use of plastic money is now becoming widespread and having merchant services in the healthcare industry is critical to victory. In this case, a reliable merchant service company should be consulted in opening a merchant service account.

Electronic payments make smooth sailing transactions. Moreover, funds will be deposited to your account which hastens the payment process. The merchant service industry promotes a more organized money management and faster payment procedure which improves cash flow to the healthcare business where a lot of patients come and go. For instance, credit card statements can help track expenses to keep a record.

Saves Time

Time is money in business so companies should stop wasting it. This does not exclude the healthcare industry where waiting time affects both patients and the company. For instance, if patients need to fall in line and wait for their turn to pay for laboratory tests, doctors who are attending these patients need to wait too. Less number of patients will be entertained in the process compared to when transactions are speedy.

In an article published by Medspace Today written by Kristina Fiore, some patients bill their doctors for waiting time. Dr. Gary Seto was cited as one example of doctors who gives $25 to patients who are waiting too long and charges the same amount for those patients who are a no-show. Bottom-line is, somebody is paying the price for waiting.

A merchant service company makes payments less time-consuming because it is automated and funds are transferred automatically into the hospital’s merchant account. Moreover, less time will be spent for bank transactions and no time will be wasted in dealing with a bounced check. In addition to that, merchant services for healthcare business allow patients to transact instantly therefore those who needs to go to work after a procedure or laboratory examination no longer have to wait in long lines nor file for a leave of absence.

Inexpensive Business Expense

Based on the data of Intuit Survey, 55% of USA’s 27 million small businesses do not accept credit cards. Furthermore, according to an article written by TJ McCue in Forbes.com, the most common reason why merchants refuse to accept cards is the fees. Intuit estimated that companies which reject credit and debit cards are bypassing approximately $7000 in sales every year.

On the other hand, the amount of sales generated by accepting merchant service cards far outweigh the expenses used in setting-up an account with merchant service provider. Because of the tough competition in the merchant service industry, there are merchant service packages that are within the budget of a medical center. Hospitals must read merchant services reviews in order to find the most cost-effective and best merchant services and providers for their demands. It is undeniable that the return of investment will surely follow if a reliable merchant services firm is consulted to handle financial transactions.

To Stay Ahead of the Game

As it was mentioned, in order to survive, a business must learn how to adapt to change. A company needs to level the playing field with its competitors and remaining stagnant will put them behind. Now that merchant services are gaining popularity, it is crucial for hospitals to join the hottest trend. Other hospitals are now accepting credit cards and are gaining a lot of benefits, therefore it is high time that you also take that step to continuously provide high quality service to your customers.

Cash is constantly evolving and we are now entering a generation where plastic cards and electronic payments are in the loop. If hospitals wanted to remain successful and last in this business, they need to provide services that are up-to-date including payment options.

Concisely, it is undeniable that merchant services play a vital role in making hospitals successful and profitable. Because of its countless advantages to the medical field and to its customers, the merchant service industry is growing remarkably. All industries rely on their clients to attain a thriving and booming business. Moreover, customers look for services that are contemporary. Therefore, if companies want to attract and keep loyal customers, they should not resist change.

Searching for the right merchant service provider for your business? Explore merchant services reviews on CrowdReviews.com and read what the clients are saying.

Keith Moore

Keith Moore has worked with several leading Android development agencies to build customized mobile apps enabling businesses to extend the use of their services to smart phones and mobile devices.

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