Published on December 3, 2024 by Zencare Team.
As technology becomes a central part of everyday life, peer-to-peer (P2P) payment apps have gained immense popularity for quick and convenient transfers. But while these tools are suitable for personal transactions and some small businesses, they present substantial risks for mental health professionals. For therapists, choosing secure, compliant payment systems is essential to safeguard their clients’ privacy and to avoid legal and ethical pitfalls.
This article will explore the potential dangers of using P2P payment apps in therapy settings and outline secure alternatives for mental health professionals in the United States.
What Are Peer-to-Peer Payment Apps?
Peer-to-peer payment apps allow users to send and receive money using digital tools tied to emails, phone numbers, or usernames. These popular apps are widely used for their convenience in personal and informal transactions, from splitting restaurant bills to paying rent.
In professional practice, particularly mental health, the appeal of convenience may tempt therapists to adopt these apps for payment. However, there’s a vast difference between using P2P payment apps for casual transactions and using them in a setting that demands high standards of confidentiality and regulatory compliance.
The Risks of Using P2P Payment Apps for Mental Health Professionals
Privacy and Confidentiality Concerns
Therapists are bound to maintain strict confidentiality standards under HIPAA. P2P payment apps, however, lack the robust data protections needed to safeguard sensitive client information:
- Risk of exposure: P2P apps store client names, emails, and payment information, which could be unintentionally visible to others. Additionally, clients will have to download a new app, input their banking information and be responsible for using a secure password or setting up 2 factor authentication.
- Unencrypted transactions: Most P2P services do not encrypt transactions to HIPAA standards, increasing the likelihood of data breaches.
For therapy practices, any breach in privacy can harm client trust and lead to legal issues, making P2P apps unsuitable for clinical transactions.
Inadequate Security Protections
Many P2P payment apps have minimal security protocols, making them susceptible to hacking, fraud, and phishing:
- Limited identity verification: Most P2P apps verify users only through email or phone, making accounts more vulnerable to identity theft and unauthorized transactions.
- Potential for fraud: Fraud and phishing scams are common on P2P platforms, where security measures are less stringent than in professional payment systems.
Therapists risk exposing both themselves and their clients to financial harm by using these apps.
Lack of Integration with Practice Management Systems
Effective practice management relies on the ability to seamlessly track and document all payments and invoices within an Electronic Health Record (EHR) system. P2P apps do not integrate with EHR systems, resulting in:
- Manual tracking and documentation: Therapists must manually input payment details, increasing the risk of errors.
- Organizational issues: Missed payments and incomplete records can disrupt financial tracking and tax reporting.
In contrast, a well-integrated payment system within an EHR like Zencare Practice Management allows therapists to maintain organized and accurate financial records, ensuring compliance with industry standards.
Compliance Issues with P2P Payment Apps
Non-Compliant with HIPAA Standards
HIPAA mandates that mental health professionals uphold stringent privacy and security protocols to protect client information. P2P payment apps fall short:
- Lack of HIPAA-compliant features: Since P2P platforms are designed for casual use, they do not meet HIPAA’s encryption and confidentiality standards.
- Client risk exposure: Using P2P apps for client transactions may expose private information, putting both the client and the therapist at risk of non-compliance penalties.
For HIPAA-compliant operations, only professional-grade payment systems designed for healthcare should be used.
Incompatibility with PCI-DSS Standards
In addition to HIPAA, mental health professionals must ensure that financial transactions adhere to the Payment Card Industry Data Security Standards (PCI-DSS):
- Weak data protection protocols: P2P apps don’t adhere to PCI-DSS requirements, leaving client payment data exposed.
- Higher data breach potential: PCI-DSS compliance helps protect cardholder data, which P2P apps do not provide.
A breach of payment data can result in serious consequences for therapy practices, including fines and reputational damage.