Is your telemedicine business struggling to get a fair deal on a merchant account – or even to be accepted? NMA can help. Read on for our expert view on the challenges you face and then get in touch for more information about how we reduce your risks and costs.
The Telemedicine sector is experiencing rapid growth. Experts predict its $10 billion evaluation in 2020 will grow at a CAGR of 30% for the next five years, putting it at a potential valuation of $25 billion by 2025. Globally, the picture is just as positive. The 2019 evaluation for global telemedicine puts the industry at $45.5 billion; by 2026, this will have grown to $175.5 billion.
Key growth factors for this rise in popularity include an increase in smartphone and internet usage. Additionally, COVID-19 has forced hospitals to embrace telemedicine. This is likely to lead to increases in adoption both during and post-COVID. With benefits to both patients and providers, telemedicine is expected to play a considerable role in the future of medicine.
Why Are Telemedicine Companies Considered High-Risk By Banks and Credit Card Processors?
Telemedicine is considered high risk by banks and credit card processors because it has an above-average level of chargebacks. Reasons for this include:
- A patient may initiate a chargeback if a meeting does not conclude to their satisfaction. For example, a patient might be hoping for a specific prescription or treatment and then not receive that option.
- A patient may initiate a chargeback if technology problems prevent them from receiving a satisfying service.
- A patient may initiate a chargeback if a prescribed medicine takes longer than they expect to arrive or arrives damaged.
Additionally, the high level of scrutiny put on telemedicine because of prescription medicines increases the risk in the eyes of financial organizations. Together these risks make it harder for telemedicine companies to get a merchant account at a fair rate.
How To Reduce Your Risk
Only 18% of chargeback disputes are successful. Because of this, your efforts are best spent on reducing the number of chargebacks you receive. You should:
- Many patients will be trying telemedicine for the first time. Set their expectations in advance so that they know what will and won’t happen and ensure they understand your terms of service.
- Put processes into place to deal with situations where technological problems interrupt a call. Prompt rescheduling and communication can help prevent a chargeback.
- Ensure prescription medicines are sent promptly and that patients are given regular delivery updates.
- Work with an experienced payment processor, like NMA, who understands your industry and risks.
How NMA Can Help You Manage Your Risk
Unlike a typical bank, we can help seemingly high-risk companies to manage their risk effectively through a combination of careful underwriting, relationship building, and ongoing monitoring. By taking care of the small details, we turn ‘high risk’ accounts into ‘managed risk.’
Together, our payment processing solutions and global network of strategic partnerships enable your telemedicine company to save money, reduce risk, and help you get funds deposited safer and quicker than with other competing solutions.
Contact NMA today to learn more about our expertise in providing high-risk merchant services for telemedicine businesses. We Work For You®