EMV/Chip Credit Cards and NextGen Healthcare

As of October 1, 2015, the liability for certain retail fraud-related chargebacks that might have been prevented with an EMV-capable terminal may become the responsibility of the Provider. Although chargeback and fraud is low in the healthcare industry and there is no mandate to implement EMV capable equipment or process EMV transactions, credit card companies will not reimburse you for the types of fraudulent transactions that might have been prevented using EMV technology (For more details on the chargebacks this applies to, please see the checklist below). EMV stands for Europay, MasterCard, and Visa, the three companies which originally created the standard, and EMV technology refers to the smart chip placed on payment cards designed to reduce credit card fraud.

NextGen Healthcare is working with both of our integrated partners, InstaMed and TransFirst, to update our integrated credit card solutions to be able to process EMV technology transactions. This transition to an EMV technology supported solution will include a software update and will also require hardware upgrades.

If, as of October 1, 2015, you are an active NextGen® Healthcare client and are current on your balances owed to NextGen Healthcare, the company will offer you the following EMV guarantee:

At no cost to you, NextGen Healthcare will accept the financial responsibility for any EMV fraudulent transaction chargeback (limited to the EMV reason codes listed below only) incurred in connection with any transaction processed through our NextGen Healthcare integrated credit card solutions. This guarantee is valid until the earlier availability of: (1) NextGen® Practice Management version 5.8 UD3, or (2) a NextGen Healthcare EMV technology supported upgrade.

EMV guarantee applicability checklist:

What would lead to Provider liability for EMV fraud-related chargebacks?

• IF a provider is presented with an EMV card,
• AND the merchant does NOT have an EMV reader,
• AND there is a chargeback in that situation,
• AND the chargeback has a reason code as shown below,

THEN the Provider may be responsible for returning those funds to cardholder.

IF the Provider is held responsible in this situation, and all other prerequisites for the EMV guarantee are met, then the NextGen Healthcare EMV guarantee will apply.

Important Note: EMV eligible transactions do not include card-not-present, ecommerce, or recurring transactions. If there is no EMV card presented in person, then there is no liability shift from credit card companies to providers.

For questions, contact Kris Klein at kklein@nextgen.com or open a NextGen Healthcare Support ticket.