How to Accept Payments for Private Pay in Assisted Living: Simple Options That Work

ach for assisted living assisted living payments collect rent assisted living credit card fees assisted living how to accept payments for private pay paper checks senior living pos system for assisted living private pay residents Aug 13, 2025

Starting an assisted living facility is exciting, but figuring out how to get paid can be confusing—especially when it comes to private pay residents, those who pay out of pocket without Medicaid or other government help.

This guide breaks down the three main ways to accept payments from private pay residents so you can choose what fits your business best and keep cash flowing smoothly. Knowing your payment options helps you avoid surprises and makes billing easier for everyone.

Let’s dive in! 💰

Check out this video, too:

Why Payment Methods Matter

Getting paid on time means your facility can run smoothly, pay your staff, and provide the best care for your residents without financial stress. Late or missed payments can cause big headaches, from cash flow problems to interrupted services.

Ask yourself:
✅ What payment methods will my residents and their families prefer and trust?
✅ How will these options affect my cash flow and payment processing fees?
✅ How can I keep payment processing simple, secure, and efficient?
✅ How will I handle late payments or bounced transactions?

Let’s explore your best payment options to keep your facility financially healthy and your residents happy.

Option 1: Paper Checks

Many seniors and their families feel the most comfortable using checks—they’ve trusted them for decades. Paper checks remain a popular payment method in assisted living.

Here’s why checks can work well:

You receive full payment with no transaction fees eating into your revenue.
You can deposit checks remotely by scanning or using your bank’s mobile app, saving trips to the bank.
It’s a familiar and easy method for many older adults and their families, who may not want to use digital payments.

But watch out for some downsides:
❌ Bounced or “bad” checks cause delays and require follow-up.
❌ Checks can get lost or delayed in the mail, slowing your cash flow.
❌ It takes longer for funds to clear compared to electronic payments.

If you accept checks, have a clear policy about when payments are due and what happens if a check bounces. Consider asking for post-dated checks or setting up a backup payment method for emergencies.

Option 2: Credit and Debit Cards

Not everyone has or wants to use a bank account for ACH, so credit and debit cards are popular because they’re quick and convenient. Many families prefer cards because of rewards programs or the ability to dispute charges if there’s a problem.

You’ll need a way to process these payments, such as:

A point-of-sale (POS) terminal to swipe, dip, or tap cards when families visit.
An online payment platform that can charge automatically monthly via a secure portal.

The biggest downside? Fees. Most credit card processors take about 2.5% to 3.5% per transaction. On a $5,000 monthly payment, that’s $125 to $175 lost in fees—which is quite a big chunk for a startup or small facility.

Still, credit cards can help avoid delays and make payments consistent. Some providers also offer payment plans or split payments, which can be helpful for families managing budgets.

Option 3: ACH Transfers

ACH stands for Automated Clearing House. It lets you take money directly from a resident’s or family member’s bank account on a scheduled date. It’s like an electronic check that moves money reliably and securely.

Here’s how ACH transfers work:

You get written authorization from the resident or responsible party.
Collect their bank routing and account numbers safely—never store this info insecurely.
Set up automatic withdrawals on a fixed date, usually monthly.
Monitor the bank accounts for changes or returned payments.

ACH payments typically cost a low flat fee, or a small monthly fee instead of a big percentage like credit cards. This makes it the most affordable option for regular payments.

A few tips for ACH:

Make sure you have a secure way to store sensitive banking info and comply with privacy laws.
Have a clear refund and cancellation policy in case someone moves out or passes away.
Consider making ACH your preferred payment method to reduce costs and keep cash flow steady.

Quick Recap: Which Payment Method Is Right for You?

Checks: Familiar and fee-free but riskier due to bounced checks and mail delays. Best if your residents prefer paper payments and you’re okay with manual processing.
Credit Cards: Fast, convenient, and familiar for many, but the fees can add up and reduce your income. Good if you want easy payments with minimal follow-up.
ACH Transfers: Low-cost, automatic, and reliable with good cash flow predictability. Ideal if your residents or families are comfortable with digital banking.

Many facilities accept a combination of these methods to fit different resident preferences. Make sure you communicate payment options clearly when families move in, so there are no surprises later.

Ready to Build a Rock-Solid Foundation for Your Facility?

Before you dive into payments, make sure your whole business plan is in place. It’s easier to grow and manage your facility when your plan covers everything—from marketing and operations to finances.

✅ Download our Business Plan Checklist to cover all the basics, including how you’ll handle payments.

Want Hands-On Help From Experts?

Starting and running an assisted living facility is a journey—and you don’t have to do it alone. Apply to our ALI Mastermind Program for expert coaching, peer support, and proven strategies to launch, buy, or convert your assisted living business.

Download Your FREE Calculator

Send Me My Calculator

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.