Credit card fraud is constantly in the news and consequently, credit card security is top-of-mind for credit card companies and retailers alike.
Last year, losses from credit card fraud hit $16 billion, and the confidential data of millions of consumers nationwide was compromised.
The credit card industry is implementing several changes this year to prevent fraud, and it’s essential for you to understand what’s happening so you can protect your business—and your patients.
Here are the credit card security changes in 2015 you need to know about.
1. EMV liability shift
Beginning in October 2015, the credit card industry will shift liability for credit card fraud away from merchants that adopt “Europay MasterCard Visa” (EMV) technology.
This technology relies on microchips embedded in credit cards to run transactions. EMV protects card acquirers and brands from fraud, but doesn’t protect merchants from data breaches. The credit card industry is currently working to introduce this technology in small businesses, such as independent community pharmacies.
Non-signature EMV devices will be available by October 2015, but EMV-certified signature capture devices won’t be available until late 2016. EMV technology is not required.
2. Chip and signature cards
Although EMV technology ultimately requires a “chip and pin” card, meaning your customers would have to enter a pin to use their card, card issuers are initially activating the new cards as “chip and signature” cards to make the transition easier. Customers will still sign for transactions until the industry moves to “chip and pin” cards.
3. Point to point encryption
Point to Point Encryption (P2PE) is a new technology that protects merchants from data breaches. Because the card is encrypted by the hardware device, the POS system doesn’t store any credit card data and, as a result, no data that can be stolen.
P2PE is currently available, but not with all payment processing systems. P2PE is also not yet required.
4. Mobile pay
It’s too early to tell whether or not mobile payment systems, such as ApplePay, will catch on with consumers. While transactions processed through mobile pay will remain low throughout 2015, analysts predict U.S. mobile payments will grow to $142 billion by 2019.
Many payment systems that are EMV-enabled also support NFC, the technology that enables mobile pay, and would allow merchants to accept these payments, which could help spur greater adoption of mobile payments. For now, mobile pay is definitely a technology to watch, but maybe not to prioritize.
It’s important to stay up-to-date on these industry changes so that you can best protect yourself, your patients and your pharmacy.
