The Hidden Cost of Getting Paid:
How Healthcare Organizations Can Reclaim Revenue Lost to Virtual Card Fees
By Tracey Tillman, Senior Vice President, Product Management, The SSI Group
October 29, 2025
In healthcare finance, we often talk about revenue leakage, but one of the most silent and systemic forms of leakage today comes from how providers are paid, specifically through virtual credit cards (VCCs). These seemingly convenient payment methods often come with hidden interchange fees ranging from 2% to 5%. That may not sound like much at first glance, but across thousands of transactions and millions of dollars in claims, the impact on a healthcare organization’s margins can be substantial.
These fees quietly erode revenue, often without the visibility or control many provider organizations need to stop the financial bleeding. That’s why we’re proud to help healthcare systems combat this growing challenge and reclaim what should rightfully stay on their balance sheet.
Understanding the VCC Trap
Virtual credit cards were originally marketed as a faster, more digital way for payers to deliver payments to providers. But over time, they’ve become a revenue-generating tactic for third-party processors, who profit from the interchange fees deducted before funds ever reach the provider. Even worse, many health systems don’t realize they’ve been enrolled in these programs – or how difficult it can be to opt out of them.
To add insult to injury, when providers do reject VCCs, payers often revert to paper checks or PDFs posted in portals, thus creating more manual work and administrative delays. That’s where EOB and Correspondence Conversion steps in.
A Better Way to Get Paid
Our solution is designed to give providers a smarter, more cost-effective alternative to VCCs. At the core of this solution is our advanced EOB and Correspondence Conversion platform, which turns paper and PDF-based remits into fully automated, 835-ready files that flow seamlessly into your revenue cycle systems.
Here’s how we do it:
- We Digitize and Classify VCC-Related Correspondence
Because VCC arrangements are typically contracted directly between payers and third-party card processors, most providers are placed into VCC payments by default, not through an explicit opt-in. That leaves a binary choice on each payment: process the card (and absorb the fees) or opt out. Even after opting out, card payments may resume months later; if a card is processed, some processors automatically re-enroll connected payer relationships, forcing the provider to repeat the opt-out process.
Our solution brings this activity into full view. We capture and normalize VCC communications (letters, scans, and portal PDFs), classify them as actionable items, and flag payer/payment-method changes so your team can intervene before fees are incurred and select lower-cost options.
- We Automate EOB Conversion with Unmatched Accuracy
If you opt-out of VCCs and get paid by check or portal-based PDF instead, we convert those EOBs into EDI 835 files within 24 hours. Our platform uses advanced, AI-powered OCR to minimize errors and deliver complete payment and adjustment data faster and more accurately than manual processes.
Unlike other solutions that rely heavily on templates or rigid parsing rules, our technology is purpose-built for healthcare’s messy, multi-format payment landscape. We can ingest remits from any source, including scanned paper, faxes, PDFs, EDI, and normalize them into standard, structured outputs. This level of flexibility ensures you don’t have to sacrifice automation just because a payer uses outdated or inconsistent formats.
- We Eliminate the Fees While Preserving the Speed
With our joint solution, you stay digital without relying on VCCs. There are no hidden fees, no re-keying, and no delays. Our goal is to give you back control of your payments, all on your terms. For large health systems and RCM leaders looking to improve financial performance without adding complexity, this is a game-changer.
- We Give You Visibility Into Payer Behavior
You can’t manage what you can’t see. That’s why our reporting tools surface detailed insights into payer trends, such as VCC frequency and correspondence volumes. This makes it easier to track who is pushing VCCs and how often, enabling your finance teams to make more informed decisions and push back strategically.
Understanding the VCC Trap
Virtual credit cards were originally marketed as a faster, more digital way for payers to deliver payments to providers. But over time, they’ve become a revenue-generating tactic for third-party processors, who profit from the interchange fees deducted before funds ever reach the provider. Even worse, many health systems don’t realize they’ve been enrolled in these programs – or how difficult it can be to opt out of them.
To add insult to injury, when providers do reject VCCs, payers often revert to paper checks or PDFs posted in portals, thus creating more manual work and administrative delays. That’s where EOB and Correspondence Conversion steps in.
A Better Way to Get Paid
Our solution is designed to give providers a smarter, more cost-effective alternative to VCCs. At the core of this solution is our advanced EOB and Correspondence Conversion platform, which turns paper and PDF-based remits into fully automated, 835-ready files that flow seamlessly into your revenue cycle systems.
Here’s how we do it:
- We Digitize and Classify VCC-Related Correspondence
Because VCC arrangements are typically contracted directly between payers and third-party card processors, most providers are placed into VCC payments by default, not through an explicit opt-in. That leaves a binary choice on each payment: process the card (and absorb the fees) or opt out. Even after opting out, card payments may resume months later; if a card is processed, some processors automatically re-enroll connected payer relationships, forcing the provider to repeat the opt-out process.
Our solution brings this activity into full view. We capture and normalize VCC communications (letters, scans, and portal PDFs), classify them as actionable items, and flag payer/payment-method changes so your team can intervene before fees are incurred and select lower-cost options.
- We Automate EOB Conversion with Unmatched Accuracy
If you opt-out of VCCs and get paid by check or portal-based PDF instead, we convert those EOBs into EDI 835 files within 24 hours. Our platform uses advanced, AI-powered OCR to minimize errors and deliver complete payment and adjustment data faster and more accurately than manual processes.
Unlike other solutions that rely heavily on templates or rigid parsing rules, our technology is purpose-built for healthcare’s messy, multi-format payment landscape. We can ingest remits from any source, including scanned paper, faxes, PDFs, EDI, and normalize them into standard, structured outputs. This level of flexibility ensures you don’t have to sacrifice automation just because a payer uses outdated or inconsistent formats.
- We Eliminate the Fees While Preserving the Speed
With our joint solution, you stay digital without relying on VCCs. There are no hidden fees, no re-keying, and no delays. Our goal is to give you back control of your payments, all on your terms. For large health systems and RCM leaders looking to improve financial performance without adding complexity, this is a game-changer.
- We Give You Visibility Into Payer Behavior
You can’t manage what you can’t see. That’s why our reporting tools surface detailed insights into payer trends, such as VCC frequency and correspondence volumes. This makes it easier to track who is pushing VCCs and how often, enabling your finance teams to make more informed decisions and push back strategically.
Final Thoughts
For too long, healthcare providers have had to choose between staying digital and protecting their revenue. With EOB and Correspondence Conversion, that’s no longer the case. Our solution helps you sidestep VCCs, eliminate unnecessary fees, and convert every remittance, regardless of format, into a fast, clean, and automated posting.
If you’re ready to stop losing money just to get paid, learn more about our EOB and Correspondence Conversion solution by contacting us.
Transforming Paper into Productivity: Automating Payment and Remit Processing
Don’t Miss Out: SSI’s Webinar on Automating Payment & Remit Processing
Healthcare providers are losing millions to hidden payment fees and manual workflows. Watch our webinar to learn how SSI’s EOB & Correspondence Conversion solution uses AI-powered automation to streamline remittance, boost cash flow, and provide real-time visibility.
Learn from industry experts and get actionable strategies to reclaim lost revenue.
Transforming Paper into Productivity: Automating Payment and Remit Processing
Don’t Miss Out: SSI’s Webinar on Automating Payment & Remit Processing
Healthcare providers are losing millions to hidden payment fees and manual workflows. Watch our webinar to learn how SSI’s EOB & Correspondence Conversion solution uses AI-powered automation to streamline remittance, boost cash flow, and provide real-time visibility.
Learn from industry experts and get actionable strategies to reclaim lost revenue.
Watch On Demand
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