Taking payments as a private practice therapist

The options

There are four main ways therapists in private practice collect payment:

• Bank transfer
• Card payments (in-person and online)
• Payment Links
• Automatic charges (via saved cards)

Each payment method has its tradeoffs, the best option will vary per practice and per client. You can see more information on the pros and cons for each method below, as well as more information on how they typically work.

Bank transfer

Bank transfer (BACS) is the default for most therapists starting out. You share your sort code and account number. This is the most simple method and, usually, doesn’t attract any processing fees.

The advantages of bank transfers as a method of payment is the simplicity, there is nothing to set up (assuming that you) already have a bank account set up for your practice. Bank transfers are also typically free, which is another advantage, saving money on processing fees.

That being said, bank transfer as a method of payment also has some disadvantages. You rely on the client remembering to manually make the payment, or potentially set up a standing order for recurring sessions. If the client forgets to pay, or falls behind, you have to chase them up for payment directly, which can be uncomfortable.

Card payments (in-person)

A card reader (Square, SumUp, and Zettle are some common options) lets you take payment by card at the end of a session. This works well for in-person practice, removes the need to chase, and the money arrives quickly.

Transaction fees are low (typically 1–2%) and the hardware is inexpensive. The main limitation is that it only works for in-person sessions, and takes up time after your session which may not be ideal if you only have 10 minutes between sessions and want to take some quick notes between clients, grab a coffee, or nip to the loo before your next session starts.

Payment links

Payment links work by sending a link to your client (usually via email, or text message) which takes them to a secure payment page. They enter their card details, and complete the payment. Once the payment is completed successfully you will typically receive some form of notification (usually an email).

Payment links work for both in-person and online therapy sessions and are widely used. The most significant advantage of using payment links is timing. You can send the link before the session, allowing the client to pay ahead of time. By collecting payment ahead of the session, you know the client is far less likely to be a no-show, or cancellation. Depending on your working agreement, you also save yourself from the awkward conversation of requesting payment for a missed session, since they have already paid.

The main disadvantage of payment links is the manual effort involved in sending them (unless you use a system that sends them automatically). Having to remember to generate and send payment links is additional burden, and something more for you to remember ahead of your sessions. Whilst it only takes a couple of minutes to create a payment link, this quickly adds up if you have a busy caseload.

Good to know: Payment processing fees are a business expense, you’ll usually receive monthly receipts for tax purposes, allowing them to be deducted as a business expense.

When to take payment

All therapists handle payments differently, whatever way works best for them and their clients. That being said, the most frequent payment method preferred by therapists is to require payment at the end of the cancellation window. For example, if you require 48 hours of notice to cancel or reschedule a session, expecting payment to also be made by that point.

That being said, even if it’s in their working agreement, a lot of people don’t enforce it. The most important thing is that you set a payment policy (or have a payment-related clause in your working agreement) and stick to it. It is good to keep this as a firm professional boundary, that you expect your clients to stick to.

Whilst it is not common practice, some therapists collect payments at the end of their sessions. This is more typical of group practices, where there may be a reception area with a dedicated payment point, rather than the therapist taking the time to process the payment via card reader.

Collecting payments prior to sessions is typically the best choice, and has three practical benefits:

1. No shows are less likely: A client who has already paid is less likely to forget about their session, reducing the likelihood of no-shows.
2. Spend less time chasing payments: You are less likely to need to chase payments if it is a firm expectation that they are made prior to the session.
3. One less thing for your client to worry about after a session: Your clients don’t need to worry about making payment after what could be an emotionally heavy session.

The most common reason therapists don’t feel comfortable billing in advance is that it feels unusual to charge clients for a session they haven’t had yet. In practice, most clients will be happy to pay in advance. It is, after all, how most services work.

A good analogy to follow is: You wouldn’t go to the supermarket expecting not to pay for your groceries until you’d eaten them all.

Invoicing

If you invoice after sessions, keep the process simple and consistent. An invoice should include:

• Your name and contact details
• The client’s name (or a reference, if you prefer not to use names on financial documents)
• The date of the session
• The fee
• Your payment details
• A due date (usually within 7 days of the issuing date)

It is usually a good idea to retain copies of any invoices you issue, for your records.

Chasing non-payment

Having to follow up unpaid invoices is one of the more awkward parts of running a private practice. A few things that reduce the friction:

Set a clear due date in your working agreement. If the client has agreed to pay within 7 days, you have a basis for following up after 7 days rather than waiting indefinitely.

Follow up by email, not in the session. Payment is an administrative matter. Dealing with it in the room conflates it with the clinical work and makes it harder for both parties.

Follow up promptly. The longer an invoice sits unpaid, the more normalised the non-payment becomes. A polite email at 8 days is easier to send than one at 6 weeks.

Consider taking payment in advance. This is the most reliable way to eliminate the problem entirely.

Tax and record keeping

As a sole trader, your session fees are income for Self Assessment purposes. Keep records of:

• Every session and the fee charged
• Every payment received, with the date
• Any refunds issued
• Expenses - room hire, insurance, supervision, software, CPD, professional memberships, Payment processing fees (if you use card readers, or payment links)

HMRC requires you to keep records for at least 5 years after the relevant tax return filing deadline. Separate business banking makes this considerably easier.

If your turnover exceeds the VAT threshold (which, at the time of writing, is £90,000), you are required to register for VAT. Most private practice therapists won’t reach this, but it’s worth knowing.

How Counselling Buddy supports taking payments in private practice

When you use Counselling Buddy, you can still use your choice of payment processing method. Whether you choose bank transfers, payment links, or manual payments, Counselling Buddy can be configured to work with your workflow.

Payments in advance

Counselling Buddy’s Billing & Payments feature is designed to automate payments made in advance, by sending your client a payment link at the time you choose, ahead of their session. You have full control over when payment links are sent; simply set once, and Counselling Buddy handles the rest.

Your client’s card can also be saved to their profile after their first payment via a payment link, meaning they can automatically be charged for future sessions. If the payment fails, they are sent a payment link, allowing them to pay manually.

Payments via Bank Transfer

If you choose to collect payments via Bank Transfer, you can use Counselling Buddy’s Session Reminders feature, or confirmation email feature, to also remind your client to pay for their session.

You have full control over when session reminders are sent, and what the email says. You can write a payment reminder into the contents of the email, reminding the client that they need to pay for their session via bank transfer if they haven’t already. You can also include your bank details if you’d like to.

Payments after sessions

Counselling Buddy’s automated billing system supports billing at the end of a session, as well as before sessions. You can configure your billing settings so that whichever method of payment you choose, the payment is processed automatically when the session ends.

Payment Links

If you use automatic payment links, you can select the option for payment links to be sent at the end of the session, making it easy for your client to then pay for their session online.

Automatic Card Payments

If you automatically charge your client’s card, you can select for the payment to be processed automatically when the session ends.

You can also use pre-authorisation, meaning that the payment amount is reserved before the session starts, but not processed until the session ends. To set this up, you need to turn on Use pre-authorisation holds under Payment Timing in your Billing & Payments settings. This will allow you to then specify a time, in hours before the session, that the funds should be reserved. (48 hours by default)

We know that our Billing and Payments system can seem complex at first, though it is designed to be intuitive and has reasonable (commonly used) default settings. There is also a quick setup wizard to help you get started with billing in 3 easy steps.

Good to know: If you have recently started using Counselling Buddy and are having trouble with billing, or don’t know quite how you want to use it, you can book a demo call with us, and we’d be happy to help you get started.