First Dollar Launches Virtual Card to Secure and Streamline Healthcare Payments


Virtual cards only exist virtually, and their technology masks account information during transactions. Like plastic cards, virtual cards can be used to make online or in-person purchases (where providers accept Apple and Google Pay).

First Dollar, the health wallet for modern, member-first plans, announced today the launch of their Virtual Card feature. With the Virtual Card feature, First Dollar partners can quickly distribute funds to their members who now have immediate access to their funds to make qualified medical purchases and payments. First Dollar’s Virtual Card is currently live for all Piermont Bank accounts created after April 7.

Physical plastic cards can cost as much as $3-5 per card to distribute to members. On the other hand, virtual cards offer up to 95% cost savings with same-day availability. And no virtual cards will end up in a landfill. Virtual cards only exist virtually, and their technology masks account information during transactions. Like plastic cards, virtual cards can be used to make online or in-person purchases (where providers accept Apple and Google Pay).

“Healthcare emergencies happen at the worst of times with no warning. People deserve a way to access their hard-earned funds immediately, so we created a streamlined solution,” says Jason Bornhorst, CEO and co-founder of First Dollar. “Not only does First Dollar’s Virtual Card make navigating healthcare easier, we’re also eliminating wait time, reducing waste and protecting cardholders from fraud.”

Healthcare continues to be one of the most vulnerable areas for data breaches. Virtual cards are also an important tool for helping make healthcare technology more secure. Their technology masks account information during transactions, protecting both users and employers. According to HIPAA Journal’s December 2021 Healthcare Data Breach Report, 712 healthcare data breaches were reported in 2021 and nearly 3 million patient records were exposed or disclosed without permission, setting a new record for healthcare data breaches.

Third-party administrators (TPAs) and health plans have millions of dollars in plastic cards in circulation, making benefit adjustments costly. Virtual cards allow TPAs and plans to make adjustments as members’ needs change. Switching vendors for tax-advantaged accounts can put plans and members in a bind as members wait for their new cards to arrive in the mail. Virtual cards help health plans and TPAs mitigate this transition pain point. First Dollar will continue to offer TPAs and health plans both virtual and physical cards according to their needs.

About First Dollar

First Dollar is the health wallet for modern, member-driven plans. We power software-defined benefits that people love to use. From HSAs and FSAs to prepaid grocery and Rx programs, our payments infrastructure supports tax-advantaged accounts, supplemental benefits, and whatever you dream up next.

To learn more, please visit: http://www.firstdollar.com.

Share article on social media or email:

Leave a Reply