Merchant Account Solutions For The Telemedicine Industry
Durango Merchant Services stays ahead of the curve with Telemedicine Merchant Accounts
Telemedicine and the Future of Healthcare
Telemedicine is the method of remotely caring for and providing medicines, diagnosis, and consultations to patients online that provide a convenient, more efficient and economical choice for consumers’ medical needs. This care is generally provided through email, smart phones, video conferences, wearable monitoring devices, electronic health records and other telecommunications technologies.
The increased cost of healthcare combined with the advance of chronic disease, a rapidly aging population and technological innovation have produced an environment where telemedicine is expected to rapidly grow and has the potential to become the standard for routine medical care.
A recent paper published by Zion Market Research, has estimated that the global telemedicine market grew to about $18.20 billion by 2016 and was expected to grow at an compounded annual growth rate of 14% between 2017 and 2020, arriving at revenues of around $38 billion by 2022. According to another report by RreportLinker, a global technology consulting company, the revenue of the telemedicine industry could be as high as $78.3 billion by 2025. Needless to say, telemedicine can be a lucrative and efficient way to carry out the business of healthcare.
Why is Telemedicine Considered a High Risk Industry?
This is a reasonable question, after all wouldn’t we trust the people that help us stay healthy to be ethical in the business of healthcare? Unfortunately, despite the rapid growth and potential of telemedicine, many merchant services companies still do not work with telemedicine businesses, for three primary reasons:
- Higher scrutiny by the federal government for businesses that engage in medicine and provide prescriptions. This means that the underwriting process for merchant account approval is more in-depth for telemedicine companies and small practices. For example if you are selling medicines you will need to provide us a copy of VIPPS Certification or proof of registration with Legit Script so we can start the underwriting process.
- The second factor that makes it more difficult to get a telemedicine merchant account is that there is no set standard for care, speed and results. Many patients grow impatient while waiting for pharmaceuticals to arrive, or they aren’t happy to pay for a simple conversation and so end up relying more on chargebacks to “correct” perceived poor service. Higher chargebacks equate to higher risk and more difficulty getting a merchant account.
- The other big issue is that Telemedicine is still a relatively new phenomenon and some of the first entrants into the market had poor standards, which stained the entire industry with a greater sense of distrust.
Due to these three risks and other smaller ones, many merchant services providers decline to accept any telemedicine business, whether the telemedicine provider has a secure website selling their products and services or if they are making sales over the phone.
What types of telemedicine businesses do you service?
The telemedicine market can be characterized by the following segments ─ neurology, orthopedics, emergency care, internal medicine, gynecology, cardiology, dermatology, and others. Dermatology played a dominant role in the market, representing more than 25% share of the overall market. Because of the common neurological complications that occur with the aftermath of strokes, Alzheimer’s and Parkinson’s, Neurology is expected to be the fastest growing area of telemedicine. Close behind comes emergency care and cardiology.
When it comes to service, the market can be characterized by the following segments ─ telemonitoring, tele-education, teleconsultation, tele-training, telecare, and telesurgery. Teleconsultation was the top segment that represented a significant share in 2016.
Requirements for Online Pharmacy Merchant Accounts
Online Pharmacy Merchant Account Required Criteria
- CLEAR copy of the signer(s) Driver’s License
- Voided check to confirm the account for deposits
- Articles of Organization/Incorporation (must show full ownership distribution %)
- Executed contracts with physicians and/or third-party medical service providers
- List of State License #’s for the prescribing physicians
- List of medical services supported, including any which are not supported (on company letterhead)
- Contracts with any third parties providing ancillary services (eg, Pharmacy providing fulfillment)
- Copy of the Pharmacy’s license
- Last 3 months’ business bank statements
- Site photos of office location – using smartphone take 4 photos of exterior (be sure to include street # in the doorway), and 4-5 pictures of the interior office space
- For the EIN (tax ID), we’ll need the SS4 letter that the IRS originally sent you confirming your EIN. If you don’t have the SS4 letter, or are using your SSN, we’ll need the W9 attached completed.
Durango Merchant Services for Telemedicine Merchant Accounts
Durango Merchant Services, on the other hand, has offered solutions for the telemedicine industry for many years. Our extensive and durable relationships with credit card processors and sponsor banks help to more fruitfully underwrite heavily regulated industries like telemedicine. Our systems are state-of-the-art and include chargeback and fraud prevention software as part of the package. So, if you are looking for an experienced and knowledgeable team to help you with your telemedicine needs, look no further than Durango Merchant Services.