The healthcare industry is increasingly vulnerable to fraud, with estimates suggesting that it suffers from $68 billion in fraudulent activities annually. As the sector evolves, so must the strategies used to safeguard patient information and payment data. One emerging solution is the adoption of EMV (Europay, Mastercard, and Visa) technology, which has already proven effective in reducing card-present payment fraud in retail and other industries. But how can EMV payments benefit healthcare specifically?
What is EMV Technology?
EMV is a global standard for credit and debit card payments, designed to enhance security through chip-based card technology. Unlike traditional magnetic stripe cards, which store static information that can be easily copied, EMV cards generate a unique transaction code for each payment. This dynamic authentication makes it extremely difficult for fraudsters to replicate or steal card data.
EMV in Healthcare Payments
The transition to EMV in the healthcare sector holds significant promise for reducing payment-related fraud. While healthcare providers may not be top targets for card-present fraud, they are by no means immune. Implementing EMV payment systems can help healthcare organizations protect their revenue and reduce the likelihood of fraudulent transactions.
Moreover, EMV technology can enhance the patient experience by streamlining payment processes. Just as consumer-facing industries have improved their services with technologies like Apple Pay and contactless payments, healthcare can similarly benefit from these innovations. By adopting EMV, healthcare providers can offer more secure, faster, and more convenient payment options, aligning with the broader trends in digital commerce. When healthcare practices combine EMV and Dual Price Processing technology, they get the benefits of security alongside significant savings in credit card processing fees.
Credit Card Fraud: A Rising Threat to All Industries
This year, card-not-present (CNP) fraud will account for $9.49 billion in loss, up 8.5% over last year, according to our data. CNP will make up 73.0% of card payment fraud loss this year, up from 57.0% in 2019.
Enhancing Patient Identity Authentication
Beyond payments, EMV technology offers potential for strengthening patient identity verification. Identity fraud in healthcare is a growing concern, leading to financial losses and compromised patient safety. By integrating EMV cards with patient identification processes, healthcare providers can create a dual-layered security system. This approach not only secures payments but also ensures that the individual receiving care is who they claim to be, reducing the risk of medical identity theft.
A white paper by the Smart Card Alliance highlights the benefits of merging EMV payment security with patient identity management. The report suggests that this integration could lead to real-time payment authorization, improved patient record security, and new auditing capabilities, ultimately reducing fraud and operational complexity for providers.
The Road Ahead for EMV in Healthcare
While the implementation of EMV and contactless payments in healthcare is still developing, the potential benefits are clear. As the industry continues to shift toward digital payments, security will become increasingly crucial. Healthcare organizations that adopt EMV technology will be better positioned to protect sensitive data, reduce fraud, and enhance the overall patient experience.
By leveraging EMV's proven security features, the healthcare industry can take a significant step forward in addressing its fraud challenges while simultaneously improving patient trust and satisfaction. As with any technological shift, the transition to EMV will require investment in new hardware and software, but the long-term benefits far outweigh these initial costs.
For healthcare providers, the message is clear: EMV is not just a payment solution—it's a comprehensive tool for securing both financial transactions and patient identities, making it an essential component of modern healthcare operations. To learn more about EMV and PayLo Dual Price Processing, contact PayLo Pro today.
