EMV/ Smart Chip: Did you get a call or letter from a merchant processing company offering a free EMV/ Smart Chip Terminal?

July 31, 2015

Dear Valued Member,

We want you to know that we are aware of the changes coming up regarding EMV/Smart Chip credit card terminals. We’re sending you this letter to inform you of where Cash Practice® Systems is at in updating our systems for these upcoming changes.

Beginning in October 2015, it is being recommended that merchants adopt the new EMV technology when accepting credit cards or risk a shift in liability. Why?  This is an attempt to reduce fraudulent credit card transactions.  More importantly, this is an attempt by the credit card companies to get you (the merchant) to be more diligent to do the things you’re supposed to do to prevent fraud.

As you know, the PCI data security standards already require you to follow certain guidelines to protect cardholder data.  For example, you are not allowed to keep credit card numbers on file in a readable format.  This is why software and receipts only display the last 4 digits of a card.

If you did keep card numbers illegally on file in a readable format and someone stole those numbers from you and used them to commit fraud; you the merchant (not the credit card issuer) would be liable and face heavy fines for failing to follow PCI DSS.

The addition of EMV technology is simply another step in increasing the security of cardholder data.  And like the example above, if fraud occurred with a chip-enabled credit card and you were not using EMV technology, you the merchant would be liable instead of the card issuer, whereas presently you are not liable (assuming you are PCI compliant).  Some say this new EMV regulation is really about trying to make the card issuers less liable and shift the cost of liability to the merchant.

So what happens if you don’t use the new EMV technology right away?  If you do not use it and someone commits fraud using an EMV chip credit card, you could be more liable.  Again, the card must be an EMV Chip Card for this to be the case.

By this time you have probably noticed that only a small percentage of your clients/patients even have a card with a Smart Chip and with the timelines mentioned in the article above, there’s no need to prematurely invest in a terminal with another company that only a very small percentage of your clients/patients can use right now.

Many other merchant processing companies are reaching out to businesses (like yours) using the new EMV/Smart Chip credit card terminals as a tactic to get you to switch to their merchant company. This reminds us of years ago when PCI first started. Merchant companies were scaring businesses into switching merchant companies due to fear of being non-compliant. Regarding EMV, some of our members recently reported receiving a letter from NCMIC that raised concerns about the upcoming EMV changes in October. Don't be fooled! Their offer, like so many others we see, locks you into a contract for two years with early termination fees and will only provide a stand-alone terminal for physically swiped, one-time payments.

The EMV credit card terminals have nothing to do whatsoever with your scheduled auto-debit payments. This is only applicable to your physically swiped, one-time payments. As a reminder to our members, stand-alone credit card terminals such as these still leave you open to theft and embezzlement. How? If someone chooses to fraudulently run a refund on their own credit card using your credit card terminal, they can then use that credit to shop or withdraw the money at their ATM. We know of numerous doctors who have had this happen, one who had over $100,000 stolen from him this way ...so beware of stand-alone credit card terminals! You are protected when using the Cash Practice® Systems, as this type of activity cannot occur with our Auto-Debit System®.

We want to reassure you that Cash Practice® Systems is working with our merchant partner company on the integration of the new EMV technology into the Auto-Debit System® software. Once integrated, the new EMV USB swipers will work just like you’re used to now. Our processing bank is on track with the integration requirements and expects completion soon. Rest assured your current USB credit card swiper used with your Cash Practice® account is safe, up to date, and PCI Compliant. There is no action needed at this time. When any action is necessary we will notify you.

If you have any questions, please contact us at (877) 343-8950 x105.

Yours in excellent service,
Dr. Miles Bodzin
Founder & CEO