What is Electronic Fund Transfer (EFTs)?
EFT is a process in which funds are exchanged between businesses and or customers electronically. It eliminates paper checks and wire transfers and it is the best management tool available to the medical billing industry. You may have heard the term ACH transactions which stands for Automated Clearing House, EFT and ACH are virtualy the same thing. The electronic process uses a clearing house to send electronic payments and payment-related information between financial institutions. Payment-related information can be sent along with ACH transactions, a process known as electronic data interchange, or EDI.
Using EFT has many advantages, it is a cost savings, accurate and convenient. Practices that receive EFT payments from payors enjoy cash-flow advantages because they are assured that payments will be made automatically to their account and deposited quickly. You will no longer have to wait long periods of time to recieve paper checks . Using EFT is also a green alternative to mailing and processing checks. Finally, EFTs are safe and secure.
All Medicare providers are encouraged to have their Medicare payments sent directly to their bank account via EFT. New providers to the Medicare program will be required to use EFT as a part of the enrollment process.
Contact SMB to get your enrollment started today!