Running a busy practice is no easy task. Just keeping up with the regulations alone can feel like a full time job. Credit card processing was always one segment of a practice that flew under the regulation radar. It was only a matter of time, however, before over regulation permeated that as well. Advanced technology has also greatly affected the credit card processing industry. Practice administrators can no longer take credit card processing for granted. A few major issues require immediate attention.
The federal government has set it’s sights on the credit card processing industry and seems to be making up for lost time. Some recent regulations have a direct impact on your practice. Many Doctors’ offices have been confused by notices sent out by all credit card processing companies relating to the need to be compliant with the PCI DSS.
In response to recent data security laws and acts of Congress, Visa USA Inc, MasterCard Worldwide, American Express, Discover, and JCB joined forces and formed the PCI Security Standards Council. This council has set a data security standard for ALL “merchants” (including physicians and dentists) who accept credit cards known as the Payment Card Industry Data Security Standards (PCI DSS).
To be clear, compliance and validation is not an option. It is mandatory. Getting compliant involves some simple steps such as keeping cardholder information under lock and key and ensuring that computers and credit card terminals are compliant and secure, among other steps. It is not enough, however, to be compliant. You must PROVE your compliance to the council by filling out the appropriate questionnaire on an ANNUAL basis.
Keep in mind, if there is a security breach in your office the fines and penalties can be substantial….not to mention the bad press and loss of reputation. Also, be aware that most processors are currently charging a monthly “non compliance fee” and other surcharges for merchants who have not completed the questionnaire and have not been validated; and if you are currently validated, once your annual validation expires, the monthly fee will resume. A simple look at your monthly statement will tell you a lot.
The most recent regulation has come down from the IRS. Credit card processors must now report each “merchants” total credit card volume and submit a 1099K. The most important part of this regulation is that the information your processor submits must match the IRS records exactly or the processor may be required to withhold 28% of the volume and make the payment to the IRS. The largest credit card processor in the country has reported that 55% of their records do not match the IRS records. Those numbers are even worse among doctor’s offices due to the various names under which offices practice and due to the corporate structures, PCs, partnerships, sole practitioners etc.
Some technological changes need a little attention as well. Many offices are making the switch from regular “analog” phone lines to digital cable lines in an effort to save money. This can be a very good move; however, the dirty little secret that many cable phone companies are not letting merchants in on is that your regular credit card terminal will not work on those lines. Hundreds of offices suddenly could not use their terminals and had to scurry to get an upgrade. Also, many offices are switching to practice management software and believe they are forced to use the integrated credit card processor at extremely high rates. If you use the integrated solution, the software company to which you may have already paid 10’s of thousands of dollars will be further profiting on your card processing. Be aware that you are not limited to that one single solution. A sophisticated credit card processing company can process your credit card transactions through your computer and automatically update the payment to your patient’s file through your practice management software.
Although these regulations and technological changes cannot be ignored, all of these issues can be made easy with the assistance of a qualified provider that understands the unique nature of a doctor’s practice.
