The global healthcare market was valued at $21.22 trillion in 2023, and it is expected to continue growing. But healthcare billing can be complicated, and it’s often outdated. Clinics and hospitals are juggling insurance reimbursements, patient cost-sharing, regulatory compliance, and rising expectations for digital experiences. Healthcare payment systems need to reduce friction and improve the payment experience—for everyone involved. Below, you’ll find a practical guide to healthcare payment processing that accounts for the way providers operate today.

What’s in this article?

• How is healthcare payment processing unique from other types?
  
• What are the main electronic payment methods for medical practices?
  
• What’s the best way to collect payments from patients at the point of care (POC)?
  
• What self-service payment tools do patients actually use?
  
• What features should you look for in a payment system for clinics or hospitals?
  

How is healthcare payment processing unique from other types?

Getting paid quickly and safely is a priority in most industries. In healthcare, you need to do it while navigating insurance red tape, protecting sensitive health data, and serving patients who might be sick, confused, or surprised by their bills. This makes processing payments particularly complicated and consequential.

Here’s how payment processing in healthcare differs from other industries.

It involves multiple bills

A single visit might involve a copay, a deductible, and a charge that requires insurance review. You need to bill the patient, the insurer, and sometimes a third party—all for the same service. Payment systems in healthcare need to handle multiple payers, split responsibilities, and partial payments without information getting lost in the shuffle.

Compliance is layered

Healthcare payments are governed by two sets of rules: financial and medical. That means your payment system needs to treat billing information like health data. Any system that touches a patient’s name or procedure details has to meet strict privacy standards, with built-in safeguards for data access.

Data security carries higher stakes

A breach involving personal health information and payment data is a reputational and legal crisis. Systems need real-time fraud monitoring, tokenization, and encryption by default, not as an upgrade.

Legacy processes are the norm

While other industries moved on from fax machines and mailed checks years ago, healthcare is still catching up. Many clinics still rely on manual billing, paper statements, and in-person collections. Changing that infrastructure means shifting entrenched workflows that weren’t built for digital.

You have to account for customer care

When a patient struggles to understand a bill or feels blindsided by a surprise charge, it can damage customer confidence. Clinics must prioritize the billing experience alongside the care experience so they don’t lose patients to other providers.

What are the main electronic payment methods for medical practices?

Unlike retail, healthcare billing has to account for split payers, insurance delays, and a wider range of financial software. This means clinics need payment systems that can handle real-world complexity without making patients or staff work harder than they need to.

Here are the payment methods worth supporting, and why they matter.

Credit and debit cards

Many patients are used to paying with cards for everything from groceries to streaming services, so paying their healthcare providers the same way feels intuitive. Card payments can happen in person (i.e., swipe, chip, tap), online via a portal, over the phone, or through a payment link. Some practices use a card-on-file functionality, where the patient authorizes a card to be used for future balances.

To stay compliant, choose a payments provider that’s a PCI Level 1 service provider, such as Stripe, that will automatically use tokenization and encryption for card payments.

Bank transfers

Electronic bank transfers are often a preferred method for patients paying large bills, especially when they want to avoid card limits or interest charges. Patients initiate these payments through patient portals or online forms by entering their bank details. Some patients find it confusing or stressful to enter their bank details, so a simple user interface (UI) with clear instructions matters. And because these payments pull directly from a bank account, systems need strong error handling (e.g., for invalid numbers, insufficient funds, etc.).

A bank transfer is one of the lowest-cost options for providers.

Digital wallets

Digital wallet payments (e.g., Apple Pay, Google Pay) work well for in-person and online payments, especially among younger, tech-forward patients. Patients can pay by tapping their phone or smartwatch at a terminal, or by selecting a digital wallet option on a bill they open via laptop, phone, or tablet. Transactions are tokenized and authenticated using biometrics, which adds a layer of built-in security.

Providing digital wallet support prepares your business for the future, while demonstrating responsiveness to shifting customer expectations.

Payment plans and installment options

Offering payment plans and installment options gives patients more flexibility in when they pay, and providers who can offer it without adding more steps can see meaningful returns. Many patients request installment options for expensive procedures, but also for relatively modest balances they can’t pay all at once. Businesses should provide simple, in-house plans (e.g., “$100 per month for 6 months”) or connect with a financing partner if needed.

You can also harness automation. The ability to schedule recurring charges reduces follow-up, avoids missed payments, and gives patients peace of mind. Patients can even manage their own plans through portals or mobile links, which reduces administrative burden.

The best approach is to provide a range of electronic payment options integrated into every touchpoint: front desk, mobile devices, portals, text reminders, and automated emails. By offering patients flexibility in how they pay, you can see faster collection cycles and fewer friction points.

What’s the best way to collect payments from patients at the point of care (POC)?

The best time to collect payment is when the patient is already in the building. It’s the moment of highest engagement and the easiest point to set expectations and close the loop. Getting it right means building a workflow that’s straightforward, respectful, and easy for patients and staff.

Here’s how high-performing clinics do it.

Start at check-in, not check-out

Having cost conversations before services are rendered sets expectations early. At check-in, staff can:

• Explain what’s covered and what isn’t
  
• Collect payment immediately
  
• Flag past-due balances
  
• Store a card on file for follow-up charges—with consent
  

Framing this as part of the intake process normalizes up-front payment. Clinics that collect early reduce downstream billing.

Train your front-desk team for payment conversations

Staff shouldn’t feel uncomfortable talking about money, and patients shouldn’t feel ambushed by the request for payment. When teams feel prepared, they enter the conversation with more confidence, and patients respond in kind. To make payment discussions a natural part of the care experience:

• Provide scripts or prompts (e.g., “Your copay today is $25. How would you like to take care of that?”)
  
• Equip staff to answer basic billing questions confidently
  
• Confirm they can explain your payment policies and options (including payment plans)
  

Use tools that ease the interaction

Speed matters. The more efficient the tools you offer, the more likely patients are to complete payment without delay. Consider the following, which reduce the burden on staff and make sure every transaction is logged and traceable:

• Contactless payments for quick checkout
  
• Payment links that let patients pay from their phones before leaving
  
• Kiosks or tablets that combine intake and payment in one step
  
• Safe card-on-file storage for remaining or future balances
  

Make your policies visible and consistent

A written, well-communicated payment policy helps normalize up-front collections. Display it at the front desk, include it in appointment reminders, and reference it during check-in.

Consistency reduces confusion. When every patient receives the same message, payment becomes a routine part of care and not a negotiation. Clinics that collect at the time of service can cut down on billing overhead, reduce bad debt, improve cash flow, and deliver a better experience for all.

What self-service payment tools do patients actually use?

In healthcare, there’s often a gap between what providers offer and what patients expect. Closing that gap starts with understanding which tools are used and why.

Here’s what’s working today.

Online patient portals

Online patient portals are still a widely used and trusted self-service channel. They’re convenient for paying medical bills because patients are often already logging in to manage appointments, messages, and test results. Within the portal, patients can view itemized bills, make one-time payments, store cards or bank information, set up autopay, and track payment history. To maximize adoption, make the portal accessible, mobile-friendly, and easy to navigate.

Text and email payment links

Patients receive a message with a personalized, safe payment link—no login required. It lets them pay from their phone in seconds, without needing to make a call or dig through paperwork. These links can be tied to automated reminders, which can help reduce missed payments.

In-office kiosks and tablets

These items don’t replace staff, but they can free up their time for other tasks. And for many patients, self-check-in feels faster and more private. They’re set up so patients can check in, update their information, and pay balances without staff assistance. They’re ideal for high-volume practices or front desks with limited staffing, and they’re especially useful for collecting copays and storing cards on file as part of the check-in process.

Automated phone systems

Patients call a number, follow prompts, and enter payment information via keypad. These are available 24/7 and don’t require logging in. This works well for older patients or those who prefer analog over digital.

When the payment process is self-service, it can reduce potential problems for everyone, leading to fewer calls, fewer missed payments, and a better experience.

What features should you look for in a payment system for clinics or hospitals?

A healthcare payment system needs to fit into a high-compliance, high-stakes environment where operations, finance, and patient experience intersect.

Here’s what to look for when evaluating your options.

Built-in support for security and compliance

Healthcare data is highly sensitive. Your payment system needs to treat financial data with the same rigor you apply to clinical records. The system should be Payment Card Industry Data Security Standard (PCI DSS)–compliant and able to support local privacy requirements, such as the Health Insurance Portability and Accountability Act (HIPAA) in the US. Look for data encryption, tokenization, fraud monitoring, and audit trails that work behind the scenes without slowing you down.

Support for multiple payment methods

Customers appreciate being able to pay in the ways that work best for them. Make it easy for your patients by offering a range of payment methods—credit cards, digital wallets, and more.

Integration with your existing systems

Look for ready-to-use integrations or open application programming interfaces (APIs) that connect easily with:

• Electronic health records (EHRs) and practice management platforms
  
• Patient portals
  
• Accounting or reporting software
  
• On-site hardware (e.g., card readers, kiosks)
  

A well-integrated system eliminates manual entry, reduces errors, and gives you real-time visibility across billing, payments, and reporting. It also creates a better experience for staff and patients—no disconnected systems, no duplicate work.

Modern, patient-friendly experience

Patients will notice when a system feels dated or confusing. Look for:

• A tidy, mobile-friendly payment interface
  
• The ability to pay without logging in (i.e., guest checkout)
  
• Straightforward bill presentation with itemized charges
  
• Text or email reminders with embedded payment links
  
• Autopay and stored payment options
  
• Support for multiple languages and accessibility needs
  

Powerful admin tools and reporting

Your finance and operations teams need programs that are easy to use and flexible, including:

• Real-time reporting dashboards
  
• Reconciliation and batch-settlement software
  
• Refund management and chargeback workflows
  
• Support for multiple locations or departments
  
• Export options or direct synchronization with accounting platforms
  

Look for systems that automate routine tasks (e.g., receipts, posting, reminders) and make it easy to troubleshoot when something breaks. Platforms that let you drill into trends—such as payment method performance or accounts receivable aging—can help you spot problems before they become revenue issues.

Scalability and reliability

If your payment volume doubles next year, your system needs to be able to easily adapt. Look for:

• Proven uptime and performance track record
  
• Scalability across locations, teams, and payment channels
  
• Support that matches the pace of your business—ideally 24/7 for key issues
  
• Frequent updates to improve the platform