Jopari, a “Health Information Technology” firm that functions as a major workers’ comp clearinghouse, is sending providers offers for Virtual Credit Card (VCC) payments on behalf of claims administrators (aka payers).

We strongly advise providers not to accept Jopari’s offer, or any other VCC payment.

As daisyNews has extensively covered, VCC payments can harm your practice financially because providers incur high fees for arguably nothing of value. Jopari reports that these fees can be as high as 7% of the payment (while depositing a check is free).

Payers cannot require providers to accept these VCCs.

Moreover, Jopari’s VCC “Agreement” explains that accepting a VCC payment constitutes automatic enrollment in VCC’s as the practice’s “preferred payment method,” which means running a VCC is never a one-time deal. If you accept a Jopari VCC payment, immediately call (800) 630-3060 and opt out of this arrangement.

Below, we unpack the fine print of Jopari’s “Agreement” and expose the dangers lurking beneath the dubious promises of VCC payment.

Avoid Virtual Credit Cards

While it may benefit a practice to accept credit card payments from group health patients for co-pays or deductibles, there’s arguably no real benefit to accepting VCCs for workers’ comp.

VCC fees can range from 2% to 7% of the total payment, typically higher than those for physical cards, because “card not present” transactions are considered higher-risk. Jopari confirmed to daisyBill that the “merchant terminal” the provider uses to run the VCC determines the fee.

Providers who run VCCs to obtain payment are handing over significant portions of their reimbursement for absolutely nothing in return. Over time, these VCC fees can add up substantially, profiting credit card companies, VCC payment vendors, and payers (in the form of rebates or revenue sharing), all at the practice’s expense. 

Meanwhile, the supposed selling point of VCCs, faster payment, is dubious at best. Payment by Electronic Funds Transfer (EFT) is cost-free and just as rapid. Additionally, many practices use a lockbox, which automatically deposits checks transmitted by payers.

Moreover, regardless of payment method, providers who send e-bills typically receive payment in a matter of days (9.2 days for daisyBill clients nationally).

Always Read the Tiny Print

A daisyBill provider received the Jopari VCC offer below, loaded with fine print, and asked for daisyBill’s opinion (you can always reach our experts, whether you’re a client or not, by using the pink chat icon at the bottom right of this screen or emailing info@daisybill.com).

As always, we were unambiguous in recommending against accepting this or any VCC.

First, a provider could easily miss the important (if tiny) copy alerting providers that they are under no obligation to accept the VCC. As the document states, accepting the VCC is a “voluntary option.” Jopari explicitly states that payment is available via check or EFT, both of which should be free to the provider.

With a few cute graphics (and larger print), the document tries to sell the provider on the supposed benefits of VCC payments: speed and security. However, this bold marketing lacks important context:

• State laws and regulations determine payment deadlines, no matter the payment delivery method.

• Jopari offers no reason for VCC payments to be any faster or more secure than a (free) EFT payment or a (free) deposited check (as noted above, VCC fees are often higher because of the perceived security risk).

Next, the finest print lays out the details of what happens when a practice uses this VCC.

According to the document, by utilizing the VCC, the provider automatically “agrees” that the Jopari VCC is the provider’s “preferred payment method.” Presumably, this means future payments will be made via VCC.

VCC Agreement Grants Jopari Broad Powers

It gets worse.

The finest print goes on to stipulate that once the provider accepts the VCC payment, the provider automatically “appoints” Jopari as the provider’s “agent” for the purpose of “collecting and processing payment from a payer for healthcare services…”

The document also instructs that “Receipt of payment from a payer by Jopari in accordance with this Agreement shall be deemed receipt of funds from the payer by you [the provider].”

This is a classic case of payers offloading their obligations to providers onto a vendor, which in turn grants that vendor the opportunity to insinuate itself into the provider’s revenue stream. While it’s not entirely clear what powers Jopari assumes as the provider’s “agent,” we do not recommend providers find out the (potentially) hard way.

To cement Jopari’s new status as the provider’s appointed collections agent, the “Agreement” requires the provider to, “whenever appropriate and necessary,” inform payers that reimbursement should go to Jopari, not to the practice.

And of course, the provider will pay processing and transaction fees on payments received via the Jopari VCC, which Jopari reports can be as high as 7%.

This is the danger of accepting a VCC payment. There are almost always strings attached, and those strings can cost the practice money and usurp the provider’s control over their own revenue management.

If you are currently accepting Jopari VCC payments, instruct your billing staff to opt out immediately by calling (800) 630-3060.

Jopari’s Electronic Payment “Solutions”: A Trojan Horse for VCCs?

Recently, Jopari issued press releases touting its innovations in electronic payment, correctly asserting that as providers transition to e-billing, payers should transition away from paper checks and towards digital options.

However, providers must stay vigilant, as Jopari’s electronic payment options will apparently continue to include VCCs.

All electronic payment methods are not the same, and can impact providers differently. Insist on cost-free payment methods, and do not allow any payer, clearinghouse, or other agent to steamroll your practice into funneling your revenue to the beneficiaries of VCC fees.

Get the right reimbursement for treating injured workers, in as little time as possible. Click below to see how.

BILL BETTER: DAISYBILL