Why Do Dental Practices Lose Money on Payments (and How to Stop It)

It’s no secret: many dental practices provide excellent care but still struggle financially. One big culprit? Payments. Between outdated processors, insurance confusion, and manual reconciliation, practices lose thousands each year in wasted staff time, rejected claims, and uncollected balances.

In fact, 65% of dental practices say delayed or rejected claims are their #1 source of lost revenue. Patients also delay or decline treatment when they don’t understand what they owe, leading to lost production and missed opportunities.

So — why do dental practices lose money on payments, and more importantly, how can you stop it? Let’s break it down.

1. Disconnected Payment Systems Create Hidden Costs

If your credit card terminal isn’t connected to your practice management system (PMS), every transaction is one more chance for error. Staff must:

• Enter payments into multiple systems.
• Reconcile separate card processor reports.
• Chase down missing or mismatched entries.

Result:

• Hours wasted on admin.
• Higher chance of fraud or embezzlement.
• Patients receive inaccurate bills — eroding trust.

👉 This is why practices searching for the best way to accept payments in a dental office are moving toward integrated solutions.

2. Patients Delay Care Without Flexible Payment Options

Today’s patients expect the same convenience they get from retail checkout: digital wallets, contactless pay, and even Buy Now, Pay Later (BNPL) financing. When practices only offer paper statements or in-office card swipes, patients are more likely to:

• Delay treatment.
• Miss payments.
• Drop off entirely.

Example: Studies show 37% of patients delay or decline dental care due to cost uncertainty. Without flexible payment options, those treatments never happen.

3. Manual Billing Leads to Overdue Balances

Paper statements, phone reminders, and staff chasing overdue balances aren’t just old-fashioned — they’re expensive. A practice that mails 500 statements monthly spends $4,500/year on postage alone. Add staff labor and slow collections, and the costs skyrocket.

So how exactly can dental practices reduce overhead balances? The answer is simple:  automation. Practices that automate reminders, posting, and eligibility checks reduce overdue balances by 15–20%.

4. Insurance Complexities Add to Revenue Leakage

Insurance coverage changes often — new jobs, new plans, annual resets. Without verifying a patient’s current eligibility before treatment, practices risk submitting claims with:

• Outdated coverage details.
• Incorrect or missing member IDs.
• Procedures that aren’t covered.
• The wrong primary vs. secondary payer.

When this happens, the claim is rejected or delayed. That means staff spend extra time reworking and resubmitting, patients get surprise bills, and the practice’s cash flow slows down.

How to Stop Losing Money on Payments

The good news: you don’t have to accept these losses as “the cost of doing business.” By switching to an integrated dental payment solution like Curve Pay, practices can:

• Save 5–10 hours/week with automated reconciliation.
• Reduce overdue balances by up to 20% with text-to-pay and reminders.
• Protect against fraud with PCI-compliant, enterprise-grade security.
• Boost treatment acceptance with HSA/FSA, Apple Pay, Google Pay, and Affirm financing.
• Get paid faster with next-day payouts.

The Bottom Line

Dental practices lose money on payments because they’re stuck with outdated systems that weren’t built for modern workflows. By upgrading to integrated, patient-friendly payments, you not only stop revenue leakage — you accelerate collections, protect your team, and give patients a better financial experience.

👉 Want to see how much your practice could save?
Learn more about Curve Pay and discover the all-in-one solution built for modern dental practices.

FAQs

Q: What’s the best way to accept payments in a dental office?
A: An integrated payment solution inside your PMS is best. It reduces errors, eliminates duplicate entry, and gives patients flexible ways to pay.

Q: How can dental practices reduce overdue balances?
A: By using automated posting and reminders through an integrated system like Curve Pay. Practices see overdue balances drop by up to 20%.

Q: How can dental practices prevent fraud in payment processing?

A: Disconnected payment systems create blind spots that make fraud and embezzlement harder to detect. With an integrated solution like Curve Pay, every payment automatically posts to the patient ledger, creating a full audit trail. Plus, Curve Pay is PCI-compliant and backed by Stripe’s enterprise-grade fraud prevention tools — protecting both your practice and your patients.