Payment card reconciliation by authorization code
A payment processor acting on behalf of a third party administrator to make payment on an adjudicated claim makes a straight through payment to an acquirer for a health care provider's merchant account. Via the authorization process, the payment processor generates an authorization code which is returned to the health care provider on its merchant statement for the payment. Concurrently, the remittance advice from the third party administrator is linked to the same authorization code as the payment by the payment processor which sends the advice in an 835-formatted transmission to the health care provider. Thus, the remittance advice may be linked (reconciled) with the payment on the merchant statement by the common authorization code.
1. A computer-implemented method of minimizing transmissions of sensitive payment card data and automatically reconciling claims with virtual payment card transactions for a healthcare provider, the method comprising the steps of:
receiving, over a computer network, a data file by a payment processor computing system operating on a computing device from a remote administrator computer to pay an adjudicated claim in an authorized amount to the healthcare provider having a tax identification number, the data file including an 835 remittance advice file from a third party administrator originating in response to a claim previously submitted to the third party administrator by the healthcare provider;
electronically requesting by the payment processor computing system a virtual payment card account from a card issuing application, wherein the virtual payment card account is configured to be charged an amount equal to the authorized amount for payment of the claim to the healthcare provider;
electronically sending from the payment processor computing system to a payment card acquirer for the healthcare provider of the claim the healthcare provider tax identification number and virtual card account data wherein the payment card acquirer electronically requests authorization from a card network for the virtual payment card data in an amount equal to the authorized amount for the claim;
generating at the direction of the payment processor computing system, an authorization code for the virtual payment card authorization request and setting the authorization code to a claim identifier value provided in the claim previously submitted by the healthcare provider, whereby the authorization response sent by the card issuing authority includes the claim identifier value as the authorization code; and
inserting the authorization code into the 835-format remittance advice file to digitally create a modified 835-format remittance advice file and electronically sending the modified 835-format remittance advice file from the payment processor computing system to the healthcare provider, whereby the authorization code links funds received through a virtual payment card transaction to the modified 835-format remittance advice file such that the healthcare provider's practice management software can automatically reconcile the payment received through the virtual payment card transaction with the modified 835-format remittance advice file.
2. The method of claim 1 wherein the modified 835-format remittance advice file is computer readable and electronically sent to the healthcare provider from the payment processor computing system.
3. A computer-implemented method of minimizing transmissions of sensitive payment card data and automatically reconciling claims with virtual payment card transactions for a healthcare provider, the method comprising the steps of:
receiving, over a computer network, a data file by a payment processor computing system operating on a computing device from a remote administrator computer to pay an adjudicated claim in an authorized amount to the healthcare provider, the data file including an 835-format remittance advice file for the claim originating from an 837 transaction set digitally created by the healthcare provider, the transaction set including a claim identifier value and a requested amount for payment, and the 835-format remittance advice file including a tax identification number for the healthcare provider, an explanation of benefits and an authorized amount for payment;
electronically requesting by the payment processor computing system a virtual payment card account from a card issuing application, wherein the virtual payment card account is configured to be charged an amount equal to the authorized amount for payment of the claim to the healthcare provider, the virtual payment card account having an account number, an expiration date and a CVV code;
electronically sending from the payment processor computing system to a payment card acquirer for the healthcare provider of the claim the healthcare provider tax identification number, virtual card account number, expiration date, and CVV code wherein the payment card acquirer electronically requests authorization from a card network for the virtual payment card data in an amount equal to the authorized amount for the claim;
digitally generating at the direction of the payment processor computing system, an authorization code for the virtual payment card authorization request and setting the authorization code to the claim identifier value whereby the authorization response sent by the card issuing authority includes the claim identifier value as the authorization code; and
inserting the authorization code into the 835-format remittance advice file to digitally create a modified 835-format remittance advice file and electronically sending the modified 835-format remittance advice file from the payment processor computing system to the healthcare provider, the modified 835-format remittance advice file including the authorization code, whereby the authorization code links funds received through the virtual payment card transaction to the 837 transaction set and the modified 835-format remittance advice file such that the healthcare provider's practice management software can reconcile the payment received through a straight through virtual payment card transaction with the modified 835-format remittance advice file and the healthcare provider can bill a patient for the difference between the requested amount in the 837 transaction set and the authorized amount enumerated in the modified 835-format remittance advice file.
4. The method of claim 3 wherein the modified 835-format remittance advice file is computer readable and electronically sent to the healthcare provider from the payment processor computing system.
5. A computer-implemented method of automatically reconciling claims with virtual payment card transactions for a healthcare provider, the method comprising the steps of:
receiving, over a computer network, a data file by a payment processor computing system operating on a computing device from a remote administrator computer to pay an adjudicated claim in an authorized amount to the healthcare provider, the data file including an 835-format remittance advice file for the claim originating from an 837 transaction set provided by a healthcare provider, the transaction set including a claim identifier value and a requested amount for payment, and the 835-format remittance advice file including a tax identification number for the healthcare provider, an explanation of benefits and an authorized amount for payment;
electronically requesting by the payment processor computing system a virtual payment card account from a card issuing application, wherein the virtual payment card account is configured to be charged an amount equal to the authorized amount for payment of the claim to the healthcare provider, the virtual payment card account having an account number, an expiration date and a CVV code;
generating at the direction of the payment processor computing system, an authorization code for the virtual payment card authorization request and setting the authorization code to the claim identifier value whereby the authorization response sent by the card issuing authority includes the claim identifier value as the authorization code;
digitally generating a modified 835-format remittance advice file, wherein the modified 835-format remittance advice file includes claim identifier value as the authorization code;
electronically sending from the payment processor computing system to the healthcare provider the virtual card account number, expiration date, CVV code and the modified 835-format remittance advice file wherein the healthcare provider enters the virtual card account number, expiration date and CVV code in a merchant account terminal device in an amount equal to the authorized amount for the claim whereby an authorization request is sent to a card issuing authority;
whereby the authorization response sent by the card issuing authority includes the claim identifier value as the authorization code, which links funds received through a virtual payment card transaction to the 837 transaction set such that the healthcare provider's practice management software can reconcile the payment received through the virtual payment card transaction and bill a patient for the difference between the requested amount in the 837 transaction set and the authorized amount received through the virtual payment card transaction.
6. The method of claim 5 wherein the modified 835-format remittance advice file is computer readable and electronically sent to the healthcare provider from the payment processor computing system.