EMV Credit Card Processing: It’s coming

EMV Credit Card Processing: It’s coming

This new standard of payment processing has actually been around since 1992. In Europe, many countries have moved to implement this technology already to combat fraud. Many have seen significant reductions as a result of the new technology. This has had a profound effect on the healthcare industry in America, where all companies processing credit cards receive d strong encouragement to institute this new tech by 10/1/15. Though a massive country such as the US is slow to change, experts anticipate approximately 70% of organizations accepting cards will be live by the end of 2015. So how does this impact patients and the industry at large? In short, in many ways, but we need to first understand what these changes mean in general

What is EMV?

This technology changes the way credit card transactions are processed. The current magnetic strips have static information encoded, this data never changes. This is a flaw that allows fraudsters to copy the information and replicate it endlessly for financial gain. The new cards have small computer chips on the left side that create a unique record for each transaction. That means if a hacker steals information from that transaction, it cannot be replicated and used for future purposes. This adds a distinct level of security. EMV is poised to change the credit card purchase process for the better. The only limitation is this is limited to physical interactions, online use will not change and remains vulnerable.

Effects on Patients and Practices

For patients, this is a good thing. Hospital and doctor’s offices focus their primary security platforms on the guarding of health records, not financial information. This leaves the information they store open to a potential breach. Currently, there can be stiff penalties levied however, if a breach occurs when a patient uses a magnetic strip for the transaction. This offers an incentive to hospital systems and physician practices to institute the new technology quickly. Granted there is a cost to convert to the new card readers; patients will be inserting their cards into a slot in the bottom of the machine vs. a swipe. Though when you think about the reduction in liability, the cost is nominal. Any company using a “chipped” card for a transaction will not be held accountable for a breach of security.

Patients can expect a change in process if they are paying in person. If they are going online to a web portal or online site to pay, the systems won’t change. The vulnerabilities will remain intact and healthcare providers’ primary focus simply isn’t financial security. Paying in person for rendered services will add some peace of mind and safety for patients who have the ability to do so. And by the end of 2015, you’ll have roughly a 70% chance of having access to do this.

The advantages for the healthcare industry and patients are numerous and easy to understand. There is no cost to patients (as long as your bank doesn’t charge for the issuance of a new EMV card) and they’ll simply realize these benefits on a transaction by transaction basis. With the advent of Consumer Directed Health Plans in the private insurance market, patients are more responsible for their care than ever. As increased patient responsibility remains on an upward trajectory, the common sense security measures of EMV are likely to increase consumer confidence and also the amount of transactions conducted in person.