Medical Debt to Impact Consumer’s Credit Rating on a Much Lesser Scale

May 15, 2014

 With medical debt increasing rapidly in the current day and age, the Wall Street Journal has recently made the move of reporting about the uplifting possibility of more regulation on the debt collection processes in this country. Not only this but also about the activity by Congress to prevent outstanding medical bills from damaging the credit reports of innocent consumers. What’s more, healthcare providers are more than willing to work out new and innovative payment plans in order to help put a stop to debt collections, once and for all.

ACA International is one of many to join the Medical Debt Collection Task Force led by the Healthcare Financial Management Association, which aims to develop the best practices to make paying medical bills a much simpler and easier process for consumers. The CEO of ACA International, Pat Morris, says, “Many consumers are struggling with medical bills today. These best practices are a balanced step forward for all of the stakeholders involved to better resolve patient medical accounts.”

The list of the best practices includes improving patient education and communication on the matter, establishing policies for account resolution, and, most importantly, making sure healthcare bills are 100% patient-friendly. The CEO and President of the Healthcare Financial Management Association (HFMA), announced recently, “These best practices provide a much-needed blueprint for hospitals, physicians, and our partners in account resolution to coordinate their activities in ways that respect and benefit patients.” He added, “Patients want information that is timely, clear, and concise and deserve a consistent, fair process for resolving payment issues.”

It may go without saying, but the development of the Medical Debt Collection Task Force thanks to the Healthcare Financial Management Association really is a major breakthrough where medical debt is concerned. Legislation to reduce the impact that medical debt has on the credit rating of consumers is well underway, with more and more people jumping on board to support this important cause. One thing is for sure – it’s about time.


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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