{"id":41877,"date":"2022-01-28T07:07:14","date_gmt":"2022-01-28T12:07:14","guid":{"rendered":"https:\/\/www.goodtherapy.org\/blog\/?p=41877"},"modified":"2026-02-13T18:59:46","modified_gmt":"2026-02-13T23:59:46","slug":"how-to-control-billing-issues","status":"publish","type":"post","link":"https:\/\/www.goodtherapy.org\/blog\/how-to-control-billing-issues","title":{"rendered":"How to Control Billing Issues"},"content":{"rendered":"

\"GoodTherapy<\/h1>\n

How to Control Billing Issues\u00a0<\/span><\/h1>\n

As a therapist, you started your business to help clients overcome the challenges they face and become the best versions of themselves. The flip side is that you have a business that depends on client payments to stay around. Let’s look some billing issues you might encounter.<\/span><\/p>\n

While treating clients might be the best part of the job, you still need to make sure your business is a profitable one. To do that, you need to iron out any billing\u00a0 issues to ensure that clients know exactly how and when they\u2019ll pay for each session and make sure you are paid correctly for your service.<\/span><\/p>\n

If you\u2019re looking to learn more about billing for therapists, you\u2019ve come to the right place. Keep reading to find out more about how to set up therapist credit card processing, how to avoid the appearance of fraud, and what you can do to prevent chargebacks.<\/span>\u00a0<\/span><\/p>\n

Billing for Therapists: Make Sure You Have the Optimal Setup<\/span>\u00a0<\/span><\/h2>\n

When you\u2019re focused on treating patients, the last thing you want to think about is whether they\u2019re going to pay their bills. Unfortunately, when practices encounter billing mishaps, stress increases, revenue decreases, and therapists are forced to spend more time thinking about cash flow and tracking down payments than they\u2019d otherwise prefer.<\/span>\u00a0<\/span><\/p>\n

With that in mind, let\u2019s look at three tips to keep in mind to ensure your billing processes are set up to help you succeed and avoid potential billing issues.<\/span><\/p>\n

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  1. \n

    Explain your credit card billing processes<\/span><\/h3>\n<\/li>\n<\/ol>\n

    To avoid wasting too much time on billing, you first want to clearly explain how you\u2019re going to\u00a0<\/span>bill clients<\/span><\/a>\u00a0and have each new client acknowledge that they understand how and when you will bill them and charge their cards. By ensuring your clients have a good idea about\u00a0<\/span>how much they\u2019ll pay<\/span>\u00a0for each session, you decrease the chances there are any billing surprises. To speed up the process, be sure to issue credit card authorization forms\u00a0that clients\u00a0can sign to show they consent to you charging their cards.<\/span>\u00a0<\/span><\/p>\n

    You\u2019ll also want to clarify your sliding scale,\u00a0<\/span>no-fee policy<\/span><\/a>, and cancellation policy.\u00a0As a rule, be transparent whenever a client has questions about billing.<\/span>\u00a0<\/span><\/p>\n

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    1. \n

      Consider your merchant category code<\/span><\/h3>\n<\/li>\n<\/ol>\n

      If your practice takes cards linked to flexible spending accounts (FSA) or health savings accounts (HSA), make sure your practice has the most optimal\u00a0<\/span>merchant category code<\/span><\/a>\u00a0(MCC). For example, if your bank codes your practice as 7277 (Debt, Marriage, Personal-Counseling Services), you should ask your bank to recode you to 8099 (Health Practitioners, Medical Services-Not Elsewhere Classified).\u00a0<\/span>\u00a0<\/span><\/p>\n

      In most cases, a\u00a0successful recode\u00a0will require you to have a certain type of license. If you\u2019re part of a group practice, use the most advanced diploma and license in your practice when you request a recode \u2014 even if the holder isn\u2019t the principal therapist in your office.<\/span>\u00a0<\/span><\/p>\n

      In the event an FSA\/HSA card is declined due to MCC coding, remind your clients that they can still submit the payment to their FSA\/HSA holding bank for reimbursement. While\u00a0<\/span>superbills<\/span><\/a>\u00a0can be particularly helpful here, regular receipts usually do the trick, too.\u00a0<\/span>\u00a0<\/span><\/p>\n

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      1. \n

        Keep a record of every appointment<\/span><\/h3>\n<\/li>\n<\/ol>\n

        Additionally, you should also keep a record of your appointment schedule. Be sure to account for all cancellations \u2014 particularly if you charge a fee for them. That way, in the event a client has a billing complaint, you\u2019ll have the data you need to make your case.<\/span>\u00a0<\/span><\/p>\n

        Avoid the Appearance of Fraud<\/span>\u00a0<\/span><\/h2>\n

        Just because you\u2019re trying to run your business as honestly, ethically, and by the book as possible doesn\u2019t mean your activities will never look suspicious.\u00a0<\/span>\u00a0<\/span><\/p>\n

        After all, banks and credit card companies often use algorithms, artificial intelligence, and predictive analytics to\u00a0<\/span>detect fraud<\/span><\/a>. So, if your behaviors mimic fraudulent activity even if you\u2019re doing everything correctly, you might run into billing issues that you\u2019ll have to resolve.<\/span>\u00a0<\/span><\/p>\n

        Luckily, by understanding what banks look for in\u00a0<\/span>fraud detection<\/span><\/a>\u00a0and avoiding those behaviors, you can increase the chances your account is never flagged. Here are some tips to keep in mind on this front:<\/span>\u00a0<\/span><\/p>\n