October 2015 is going to be a busy month for practices. Not only do we have ICD-10 implementation, but we have to be ready for changes in credit card technology with the switch to EMV/chip cards and the liability shifts. Read on to learn how this affects your business and practice.
Most all of us have been the target of our cards being compromised in some way. In my own situation, each and every time, neither the merchant or I have had to bear the cost of this…the banks do. However, that is changing this October for business owners.
The technology of magnetic striped cards is outdated and often subject to fraud. The world has been shifting to a smart card and newer technologies and it’s time for the US to catch up.
Beginning in October, the standard for card use will be the EMV or SmartCards which utilize chip technology. They are designed to make it more difficult for fraudulent use (though I’m sure it’s not fool-proof). In order to utilize these cards, our businesses will need new processing equipment – ie the old swipers are headed toward the e-recycling stations.
In addition to the chip cards, we are already seeing and using NFC technology to pay for items. NFC means “near field communication”. This is what is behind Apply Pay and Google Wallet. In both cases, your credit card information is stored securely and allows you to use your mobile device to pay for products and services without touching a device…as long as the merchant (i.e. you), has an appropriate card reader on hand.
Here’s why this is important to you.
Beginning in October 2015, if you happen to process a magnetic card that is fraudulent, you can be liable for those charges instead of the bank. Of course if you are using the newer EMV cards, the bank will still carry the lability.
What To Do:
If you accept credit cards in your business – contact your merchant providers to find out what you can do to replace your current “swiper” for the new EMV and NFC readers.
If you happen to be a Square user, they are currently offering “free” (you pay $49.00 and they refund it after use) contactless and chip card readers to their users.