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kpratt
Canine III

How to properly post EFTs

Our office is considering accepting EFTs. I did try to set up an EFT payment code, but it is not showing up on the A/R report.  The EFT code listed says it is for ePostings and we do not subscribe to ePostings.  Please help with the set up of this payment code so that it will show up on reports.  

I would also like to ask other offices how they have set up the acceptance of EFTs.  Do you have a dedicated bank account for EFTs? Is the payment posted to a patients account before being reconciled with the bank account? Is there a transaction number associated with each EFT? Any tips or hints would be helpful.

Thanks.

(moderator edit: updated Description, changed to question, added search terms electronic funds transfer)

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9 Replies
CS Dental Employee
CS Dental Employee

Re: EFTs

Good morning Kristy,

In order for EFT's to appear on reports change the Payment type when entering an insurance payment from Check to EFT. 

You have the same option when entering a Bulk Check:

EFT's will be displayed in the Deposit Detail as shown below.

Hope this helps!

kpratt
Canine III

Re: How to properly post EFTs

Thank you for your help.

Kristy

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CS Dental Employee
CS Dental Employee

Re: How to properly post EFTs

kpratt

I will check with a couple of PracticeWorks offices that I know accept EFT's and respond back with their answers.

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CS Dental Employee
CS Dental Employee

Re: How to properly post EFTs

Good morning kpratt‌,

I spoke to three offices about EFTs this morning. One office I spoke to refuses to take them as they do not want the insurance companies to have access to their bank account. Below are answers from the other two offices that accept EFTs.

Do you have a dedicated bank account for EFTs?

Baltimore Office – Yes

Texas Office – No

Is the payment posted to a patients account before being reconciled with the bank account?

Baltimore Office – Accept EFTs from 2 insurance companies. The payment is posted when she discovers the payment was received.

Texas Office - Yes. Payments are posted as they are discovered which is typically after the fact. This office receives EFT’s from a dozen insurance companies.

Is there a transaction number associated with each EFT?

Baltimore Office - Yes, on the website there is a trace number.
Texas Office - No.

Any tips or hints would be helpful.

Baltimore Office – There is no notification from the insurance companies that EFT payments were made. She logs into their respective websites daily.

Texas Office – Check the bank account every day!

A dedicated bank account is necessary if the doctor does not want employees to see all bank account activity.

If insurance payments are entered by someone other than the person reconciling the bank account, there needs to be good communication.

The doctor should set up the EFT payments.

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peterbreen
Canine II

Re: How to properly post EFTs

We accept EFTs and find the payments come through more quickly than with the paper checks. On the daily reports, the EFTs are separated out on the daily deposit detail. We are currently accepting EFTs for Metlife and Delta Dental of MA.

I hope this is helpful.

drcavola
Premolar III

Re: How to properly post EFTs

Jeremy,

That client who stated they did not want their bank account accessible to insurance companies is smoking the funny stuff.  We've been doing this for 5-7 years.  WHEN/IF there is an issue with an overpayment, NEVER has the insurance company accessed our bank account to grab those funds.  We get the standard letter, and those are few and far between.

You don't need a separate bank account for which those EFT's are deposited.  That is a waste.

The account owner can take just 3 minutes of their time to look at the beginning of the day which EFT's are posted, and the amounts.  That information is then given to the business coordinator who grabs the EOB's for the appropriate payments.

Not sure what you mean by "doctor should set up the EFT payments".  If you are referencing Softdent in particular, then you all should provide the proper workflow (ie, WHICH posting codes to use) to help these offices.

Don't understand WHY offices don't take advantage of technology MORE.

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CS Dental Employee
CS Dental Employee

Re: How to properly post EFTs

dr.cavola‌,

Welcome to the PracticeWorks community!

To provide some background here; the original poster was requesting information from offices that accept EFT's. I spoke to two PracticeWorks offices and recorded their feedback as it was given to me.

I've spoken to more offices about this in the meantime and haven't heard about insurance companies extracting payments; only requesting reimbursement when necessary. 

If the original poster has more questions she may reach out to you. 

P.S. I'm certainly on board with office's taking advantage of more technology!

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peterbreen
Canine II

Re: How to properly post EFTs

We have been accepting EFTs from Delta Dental and Metlife for quite a while. We have the funds going directly into our business checking account. We reconcile every day using the daily reports and quickbooks to make sure they match. We use quickbooks for the business checking account. 

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mrgrenier
Canine III

Re: How to properly post EFTs

Also can confirm EFT is the way to go we have ePostings and for any carrier that isn't ePosting integrated we set up whatever standalone EFT solution they offer (requires login to each website). You will find some carriers will outsource all of their EFT's to one portal, for example, Lincoln Financial, Mutual of Omaha, and the American Postal Workers Union all use PNC. To stay on top of it I keep a set of on on-screen stickies to remind me to check them all and I make the rounds.

I have them all set up to go into the main business checking account because I am reasonably certain it won't change (You must involve the owner on this decision) and I have access to view it and make sure the deposit actually happened (I have yet to see it not) or to find a payment when I just feel like I want to verify it happened.

When posting in pworks outside of ePosting you would just set the payment type to EFT or Credit (If paid with a virtual credit card) instead of check when posting...

I have been EFT in one form or another with every carrier for about 2 years now started with just one or 2 and eventually went to all... I won't look back!

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