Dive Brief:
- In an attempt to improve security, banks and credit card companies are switching from strip-based cards to ones that are microchip-based.
- By the end of this year, more than half a billion of the new "EVM" (Europay, Mastercard, Visa) cards will be in use.
- Researchers estimate that by October, 63% of U.S. cards and 47% of all card terminals in the U.S. will have converted to the new EVM technology.
Dive Insight:
Although there is no federal requirement that healthcare organizations or other businesses convert to the new technology, Karen Cox, vice president of payments and retail solutions for Moneris Solutions, told Modern Healthcare that efforts to reduce fraud will drive conversion. "After October, if someone [with intent to commit fraud] with a chip card would hit a chip terminal, the merchant is protected [by the card issuer] from charge back," she said. "But if the merchant, hospital or medical practice is still using an older magnetic strip reader, the liability for charge-backs falls on the business still using the older technology."
A countertop terminal costs around $200 to $300. The biggest expense will be software conversions for financial or practice management systems.