Credit Card EMV Chip Technology Compliance Deadline - October 1

Credit Card EMV Chip Technology Compliance Deadline - October 1

 

The increasing number of large of credit card information breaches have led the major credit card vendors to implement the Europay, MasterCard, and Visa Chip (“EMV Chip”) as a means of preventing large scale credit card fraud.  Also known as the Chip-and-PIN system, the chip is an additional security measure and supplements the magnetic strip on the back of a credit card. After October 1, 2015, any retailer or business (including physician practices) that is unable or unwilling to utilize an EMV chip reader (when a card with an EMV chip is used) will be liable for any fraudulent purchases. In other words, if a retailer or business is still using the “swipe and signature” methodology and the customer has a “smartcard,” the retailer or business is liable. If a retailer or business is still using the “swipe and signature” methodology and the customer has a traditional magnetic stripe card, the retailer or business is generally not liable (just as before Oct. 2015).

According to Visa “The party that is the cause of a chip transaction not occurring (i.e., either the issuer or the merchant’s acquirer processor) will be held financially liable for any resulting ‘card present’ counterfeit fraud losses.”

Since many financial institutions have already begun issuing the “Pin and Chip” cards, healthcare providers should consider implementing a credit card reader that is capable of EMV transactions.