Collect and Apply Patient Payments

With the RCM, patient payments can be easily collected, applied, and adjusted through various methods and workflows. Let's review those methods together and determine which is right for you!

Payment Types

Acceptable payment methods in the Patient Billing module can be categorized into two types: paper payments and electronic payments.

Paper Payments

Paper payments are categorized as those made using cash, checks, or money orders. Accepting these methods of payment requires no additional configuration in the RCM.

Electronic Payments

Credit Card and ACH patients are both considered electronic payment methods in the RCM. Accepting these methods of payment requires additional configuration on the backend, including setting up merchant services through the clearinghouse.

When an electronic payment method is used, the system creates a token to store the payment method information in the RCM securely. This token is a unique alphanumeric identifier for the cardholder, and it is not the same as the actual credit card number. This system enables the merchant to charge the correct card, with additional security measures in place, ensuring the transaction's safety.

Walkthrough

Reference the video below to watch the payment collection process.

Payment Collection Workflow

Click below to learn how to collect payments for each payment method offered in the RCM.

1. Navigate to the Patients section and locate the patient you wish to record a payment for.
2. Click the Collect Payment quick link.
   
3. In the Collect Payment window, select the desired Payment Type from the drop-down.
   

4. Next, enter the name of the person making the payment. For checks/card/ACH payments, we recommend entering the account holder's name.

   

5. Then enter the amount of the payment in the Amount field.

6. Next, update the Payment Date field when applicable. Note: this field cannot be edited once the payment has been created.

   

7. Then update the Facility drop-down to indicate where services were rendered.
8. As a best practice, we recommend always including the Deposit Date for record-keeping purposes. 
   

9. Toggle on Email Receipt to send a payment receipt to the patient's email on file and confirm the recipients.

   

10. Add any pertinent notes as needed, then click Collect Payment to complete the process.

Apply Patient Payments

After a payment is collected in the RCM, users can choose how to allocate it. The options below allow for automatic, manual, or postponed application of the payment based on your workflow needs.

• Auto-Apply Payment

  Selecting Auto Apply Payment instructs the system to apply the payment to the oldest billables with an open balance. Billables paid in full will automatically close, and partially paid billables will remain open.

  Note: Organizations can enable a setting that auto-applies all patient payments. Contact [e-mail] for assistance.

  How to Auto-Apply a Payment

  1. Collect the patient’s payment using any supported method.
  2. Update the Applied Payment Type drop-down to Auto Apply Payment.
  3. Then click Submit to complete the process.

• Manually Apply the Payment

  Selecting Manually Apply the Payment allows users to choose specific billables and determine how much of the payment to apply to each one. This option provides the most control and flexibility.

  How to Manually Apply a Payment

  1. Collect the patient’s payment.
  2. Update the Applied Payment Type drop-down to Manually Apply Payment.
  3. The system displays a list of open billables, defaulting to the oldest outstanding charge.
  4. Enter the amount you want to allocate and apply as the payment.
  5. To split the payment across multiple billables, select the plus icon and enter the amount for each additional billable.
     
  6. Finally, click Submit to complete the process.
     

• Leave the Payment Unapplied

  Selecting Leave Payment Unapplied stores the payment as an account credit without applying it to any charges. This option is helpful for users who want full control over when and how credits are applied.

  How to Leave a Payment Unapplied

  1. Collect the patient’s payment.
  2. Update the Applied Payment Type drop-down to Leave Payment Unapplied.
     
  3. Then select Submit.
     

  How to Apply an Unapplied Credit Later

  • Select Auto Apply Payments to apply all patient credits to all open billables.
  • Select Apply Payment to choose the billables and amounts to apply manually.
    

Credit Card Error Messages

Error messages may occur when using a credit card as a payment method. Refer to the lists below for additional details on why the payment was not successful.

• Let's review specific error messages!

  Status / Code	Description
  AA	The transaction was approved.
  ND	The transaction was declined.
  ND – Error Code 110	EXCEEDS AMT LMT (Status 'ND')
  ND – Error Code 12	INVALID CARD (Status 'ND')
  ND – Error Code 2	PLEASE RETRY5270 (Status 'ND')
  ND – Error Code 2185	INVALID CARD (Status 'ND')
  ND – Error Code 2188	DECLINED (Status 'ND')
  ND – Error Code 2190	EXPIRED CARD (Status 'ND')
  ND – Error Code 2200	PICK UP CARD (Status 'ND')
  ND – Error Code 24	EXPIRED CARD (Status 'ND')
  ND – Error Code 2511	EXCEEDS AMT LMT (Status 'ND')
  ND – Error Code 4	DECLINED (Status 'ND')
  ZM	The transaction didn't meet Waystar requirements.
  ZM – Error Code 227	Unable to void previously voided transaction (Status 'ZM')
  FA	Transaction failed at Waystar.
  FA – Error Code 0	Settings do not exist. (Status 'FA')
  FA – Error Code 188	Invalid Expiration Date (Status 'FA')
  FA – Error Code 196	Invalid credit card number (Status 'FA')
  FA – Error Code 200	Transaction failed (Status 'FA')
  VD	The transaction was voided and will not be funded. Voids occur when a payment is refunded within 24 hours of collection.
  QD	The transaction is currently queued for processing.
  NF	The transaction received cannot be found.
  NF – Error Code 8	REC NOT FOUND (Status 'NF')
  PU	The transaction has been declined and the card issuer would like for you to keep the card and send it to the payment processor (do this only if you feel it is safe to do so). Ask for another form of payment.
  PU – Error Code 7	PICK UP CARD (Status 'PU')
  NR	The issuing bank requires more information before it will approve the transaction. Call the payment processor's authorization center, have the customer call their bank, or ask for another form of payment.
  NR – Error Code 49	CALL AUTH CENTER (Status 'NR')
  RT	The transaction is a return.
  DS	The transaction has been declined because the Card Security Code entered wasn't valid.
  DZ	The transaction has been declined because the billing Zip Code entered wasn't valid.
  RF	The transaction has been refunded.
  FU	The transaction has been funded into the merchant's bank account.

• Let's review non-specific error messages!

  Error Code	Definition	Resolution
  188	The expiration date for the credit card is invalid.	Re-enter the date or, if the date is expired, contact the patient and request a new credit card number.
  190	The configuration for the merchant account is incomplete or invalid.	Contact support for assistance.
  196	The credit card number is invalid.	Re-enter the card number or contact the patient and request a new credit card number.
  209	N/A	Contact support for assistance.
  222	Either the token saved is no longer valid, or the practice was created after the card was saved, negating the previous token.	Re-enter the card information, including all details, to regenerate the token.
  308	The transaction is not refundable.	Contact support for assistance.