Patient Financing Reconciliation: CareCredit, Sunbit, and Beyond
CareCredit approved the patient for three thousand dollars. Your bank shows a deposit of twenty-eight fifty. Where did the other hundred fifty go?
📚 Part of our reconciliation series: This article is part of The Complete Guide to Dental Practice Reconciliation, our comprehensive resource on closing your books accurately and preventing revenue leakage.
Patient Financing Adds Complexity
Patient financing through providers like CareCredit, Sunbit, Proceed Finance, and others helps patients afford treatment. For the practice, financing means faster payment and reduced collection risk.
But financing payments are not straightforward. The amount deposited is not the amount the patient financed. Fees are deducted. Timing varies. Multiple transactions may combine into single deposits. Without proper reconciliation, patient accounts show incorrect balances and your books do not match reality.
How Patient Financing Works
The patient applies for financing and is approved for a credit amount. The patient signs for a specific treatment amount, often less than their approval. The financing company pays the practice, minus their fee. The deposit arrives in your bank account, typically within a few business days.
The key point is that financing companies deduct their fees before paying you. A patient who finances three thousand dollars might generate a deposit of twenty-eight hundred and fifty dollars if the fee is five percent. Your PMS should show the patient paid three thousand dollars since that is what they owe, but your bank shows twenty-eight fifty.
This difference is not missing money. It is the financing fee you paid for the service. But it must be recorded correctly or your books will not balance.
Recording Financing Transactions
When the patient finances treatment, record the full amount as patient payment in your PMS. The patient's balance should reflect that they paid what they owe.
Record the financing fee separately as an expense or contra-revenue depending on your accounting method. This captures the cost of accepting financed payments.
When the deposit arrives, the net amount deposited should equal the gross payment minus the fee. Both numbers need to reconcile to your records.
Reconciling CareCredit Payments
CareCredit deposits arrive via EFT, typically on a daily or weekly settlement cycle. Each deposit may include multiple patient transactions. The deposit amount is net of fees.
To reconcile, start with the CareCredit provider portal which shows each transaction including patient name, amount financed, fee charged, and net amount. Match each transaction to a patient payment in your PMS. Compare the total net deposits to your bank statement.
Common CareCredit reconciliation issues include deposits combining multiple days of transactions, promotional financing with different fee structures, refunds that reduce subsequent deposits, and timing differences between transaction and deposit dates.
Reconciling Sunbit Payments
Sunbit works similarly but may have different settlement timing and fee structures. The Sunbit merchant portal shows transaction details needed for reconciliation.
Match each Sunbit transaction to a patient payment. Verify the net deposit matches expected amounts after fees. Watch for returns or adjustments that affect deposit totals.
Reconciling Other Financing Providers
Each financing provider has its own portal, settlement cycle, and fee structure. The reconciliation principles remain the same across all of them.
Obtain transaction-level detail from the provider showing gross amount, fees, and net payment. Match transactions to patient payments in your PMS. Verify deposits match expected net amounts. Record fees appropriately in your accounting.
Common Financing Reconciliation Problems
Patient balance shows financing not received when the patient signed for financing but the deposit never arrived. This may indicate a processing error, declined transaction, or timing delay. Check with the financing provider to verify transaction status.
Deposit does not match expected amount when the net deposit differs from what you calculated. Review the fee structure since promotional financing often has different rates. Check for returns or adjustments. Verify you are looking at the right transactions.
Patient has credit balance after financing when the financing amount exceeds what the patient owes. This happens when treatment plans change after financing approval. Refund overpayments or apply to future treatment.
Cannot identify which patient paid when deposits combine multiple patients and you cannot match to individuals. Use the financing provider portal to see transaction-level detail with patient names.
Best Practices
Establish fee accounts in your chart of accounts for each financing provider to track the true cost of accepting financed payments.
Reconcile financing deposits weekly at minimum. Daily is better for high-volume practices. Do not let transactions accumulate without matching.
Train front desk staff on proper recording of financing transactions. The PMS payment should reflect what the patient financed, not the net deposit amount.
Review financing costs periodically. If fees are eating too much of your revenue, evaluate whether the patient convenience justifies the cost.
Managing multiple financing providers? Zeldent reconciles all payment sources including patient financing, matching deposits to transactions and tracking fees automatically. Schedule a demo to simplify financing reconciliation.
