Dishonest billing practices in the transcription industry

On this page, you can view actual scans from transcription service vendor quotes. What you will discover is that these vendors are manipulating line definitions to create deceptively low transcription rates. Note that all actual vendor names and references have been removed from these quotes (to protect the innocent--or guilty?).

What does this mean for you if you sell your transcription services to others? It means that you have to compete against unethical billing practices. Is this fair? You decide.

Explanation of the first vendor's quote - Click here to view the .gif image

This vendor was asked to provide billing charges as gross lines, 55 character lines, by the ASCII text kilobyte, and by the method they most commonly use. As you can see, this vendor charges $.1325 per gross line. They charge $.1350 per 55 character line. Using line rate conversion factors you should realize that this rate should be closer to 16 cents per 55 character line. This vendor did not quote a price per kilobyte, but their most commonly used definition is based on the AAMT character line, which they charge $.1395 for. Again if you apply a conversion factor here, this should really be closer to 19 cents per AAMT line.

The client who sent in this RFP also asked that they be provided the actual costs of transcribing some enclosed sample reports. For some reason, this vendor is quoting a different price to transcribe the same report depending on the billing method used. This almost seems to imply that there is some intrinsic overhead to billing by, for instance, a 55 character line, verses a gross line which is obviously ridiculous.

Explanation of the second vendor's quote - Click here to view the .gif image

This second vendor shows the same deception with billing line counts. As you can see, this vendor charges $.145 for a gross line. They did not state a rate for a 55 character line, but did state a rate of $4.61 for an ASCII kilobyte. If you do some calculations here, this equates to about 29 cents a 65 character line which would imply either a mistake or a misunderstanding about what a kilobyte is.

Lastly, they charge .125 per AAMT line. This should be a red flag. A 65 character line, be it AAMT or not, should always be more per line than a gross line. But in this case, it is substantially less, which would lead one to believe that this vendor is manipulating the AAMT line definition to get a deceptively low line rate.

And again, for some reason this vendor is quoting different prices to transcribe the same report depending on the billing method.


As you can see, this does not paint a rosy picture for our industry.