The value of paying providers with virtual cards
» Quick Take: Virtual cards and health care lenders
The value of paying providers
with virtual cards
Millions of Americans need help filling the gap between their insurance
coverage and the cost of discretionary health care treatments and
equipment. Many seek short-term financing to cover veterinary care for
their pets, cosmetic procedures for themselves, orthodontic care for their
children, or to purchase medical equipment for loved ones. The payment
experience for the consumer may be smooth and seamless. It may even
appear to be instantaneous. But behind the scenes, a different payment
reality is playing out between lender and provider.
Virtual cards can
offer health care
providers a smooth
and seamless
payment experience.
Your customer’s puppy
needs urgent care
Customer asks you for
a short-term loan
Behind the scenes, you send
the veterinarian a check
00000526 0000005 12982
N o 12982YOURBANK
Slower payments and higher costs
Financing companies typically pay providers using checks or through Automated Clearing House (ACH)
deposits. But these solutions are slow and can be vulnerable to fraud. Compared to modern payment
solutions, they typically increase the cost of each transaction.
The value of paying providers
with virtual cards
Millions of Americans need help filling the gap between their insurance
coverage and the cost of discretionary health care treatments and
equipment. Many seek short-term financing to cover veterinary care for
their pets, cosmetic procedures for themselves, orthodontic care for their
children, or to purchase medical equipment for loved ones. The payment
experience for the consumer may be smooth and seamless. It may even
appear to be instantaneous. But behind the scenes, a different payment
reality is playing out between lender and provider.
Virtual cards can
offer health care
providers a smooth
and seamless
payment experience.
Your customer’s puppy
needs urgent care
Customer asks you for
a short-term loan
Behind the scenes, you send
the veterinarian a check
00000526 0000005 12982
N o 12982YOURBANK
Slower payments and higher costs
Financing companies typically pay providers using checks or through Automated Clearing House (ACH)
deposits. But these solutions are slow and can be vulnerable to fraud. Compared to modern payment
solutions, they typically increase the cost of each transaction.
marqeta.com facebook.com/marqetainc linkedin.com/company/marqeta-inc twitter.com/marqeta
Faster payments and greater security
Financing companies that rely on payment solutions based on modern card issuing are often
able to pay providers faster and with a reduced risk that account information will be misused.
Also, interchange fees collected as part of the transaction can help offset payment costs.
Virtual cards benefit lenders and providers
Paying a health care provider with a virtual card rather than with a check or through ACH
can enable the provider to get reimbursed faster and more efficiently. At the same time,
lenders avoid the costs associated with creating, mailing, and reconciling paper checks.
Since virtual card payments do not require integration with an electronic funds transfer
system, lenders can more easily onboard new providers.
Real-time
reimbursement
Simplified
onboarding
Easier
reconciliation
Point-of-sale
reimbursement
provides an incentive
for providers to accept
BNPL or branded
payment cards.
A virtual card
payment can be sent
to any provider who
accepts ordinary
credit, debit, and
prepaid cards.
Unlike checks or
ACH, claim numbers
can easily be
appended to virtual
cards to assist in
reconciliation.
Your customer’s child
needs braces
You approve the customer
for financing
You instantly provision a virtual card to the
customer’s digital wallet to pay the orthodontist
Faster payments and greater security
Financing companies that rely on payment solutions based on modern card issuing are often
able to pay providers faster and with a reduced risk that account information will be misused.
Also, interchange fees collected as part of the transaction can help offset payment costs.
Virtual cards benefit lenders and providers
Paying a health care provider with a virtual card rather than with a check or through ACH
can enable the provider to get reimbursed faster and more efficiently. At the same time,
lenders avoid the costs associated with creating, mailing, and reconciling paper checks.
Since virtual card payments do not require integration with an electronic funds transfer
system, lenders can more easily onboard new providers.
Real-time
reimbursement
Simplified
onboarding
Easier
reconciliation
Point-of-sale
reimbursement
provides an incentive
for providers to accept
BNPL or branded
payment cards.
A virtual card
payment can be sent
to any provider who
accepts ordinary
credit, debit, and
prepaid cards.
Unlike checks or
ACH, claim numbers
can easily be
appended to virtual
cards to assist in
reconciliation.
Your customer’s child
needs braces
You approve the customer
for financing
You instantly provision a virtual card to the
customer’s digital wallet to pay the orthodontist
“With Marqeta and the
virtual cards that we
leverage, fraud is close
to zero.”
Bob Kaufman, CEO, ConnexPay
marqeta.com facebook.com/marqetainc linkedin.com/company/marqeta-inc twitter.com/marqeta
The modern card
issuing advantage
Virtual cards have changed a lot since they were
first introduced twenty years ago. In place of
traditional programs, modern card issuing platforms
like Marqeta give customers the ability
to customize payment solutions using open APIs.
While legacy card programs can be inflexible
and typically offer little visibility into
their technology, Marqeta provides in-depth
developer documentation, API specifications,
and an advanced developer sandbox. This
allows companies to launch payment solutions
tailored to their unique business needs.
Talk to a Marqeta payment
expert to learn more.
virtual cards that we
leverage, fraud is close
to zero.”
Bob Kaufman, CEO, ConnexPay
marqeta.com facebook.com/marqetainc linkedin.com/company/marqeta-inc twitter.com/marqeta
The modern card
issuing advantage
Virtual cards have changed a lot since they were
first introduced twenty years ago. In place of
traditional programs, modern card issuing platforms
like Marqeta give customers the ability
to customize payment solutions using open APIs.
While legacy card programs can be inflexible
and typically offer little visibility into
their technology, Marqeta provides in-depth
developer documentation, API specifications,
and an advanced developer sandbox. This
allows companies to launch payment solutions
tailored to their unique business needs.
Talk to a Marqeta payment
expert to learn more.
Discover more insights