American’s Finally Getting Credit Cards with Chips. Have You Gotten Yours?

Do you know why almost half of all credit card fraud takes place in the United States even though our country only makes up about 25 percent of credit card transactions? It’s because most of us are still using credit cards with 50-year-old technology—magnetic strips.

Good news! Credit and debit cards in the U.S are finally getting more secure because the old magnetic strip technology is being replaced with “chip” or “EMV” (Europay, MasterCard and Visa) technology.

The new chip cards are different from magnetic strip cards in a few ways:

  • The microchip built into the credit card contains the same information that’s stored in the old magnetic strip, but duplicating the cards is nearly impossible with this new technology.
  • The chip also produces a single-use code to validate each transaction which adds another layer of security, protecting your card from unauthorized use. Even if someone obtains the code, it cannot be used again.
  • The new chip cards are inserted—dipped—into terminals rather than swiped (like the ATM machine at your bank) and left in the terminal until the transaction is complete. (I’m hoping I don’t walk away without retrieving my card!)

The thing is, while banks are issuing more and more of the new chip cards, I’ve read that almost 81 percent of business owners who accept card payments have not upgraded to the new terminal. If that’s the case, don’t worry, all chip cards come with a magnetic strip that can be used if chip terminals aren’t available. However,  swipe if it’s your only option—your transaction will be way more secure when the chip card is dipped.

If you are a business that has not yet invested in the new upgraded terminal, please know that on October 1st, 2015 there is going to be a liability shift.  This change could shift the liability for the cost incurred from counterfeit card fraud from the issuer to the business—the liability will shift to whichever party is least EMV-compliant. If you have a chip-enabled terminal, you will not be impacted by the liability shift since you will be EMV-compliant.

Truth be told, these chip cards really aren’t very new. If you are a world traveler, you already know they have been utilized in Europe and other countries for about 10 years now. But if you think having the new chip card will make your next European vacation hassle-free, think again.  Most of chip cards here in the U.S are “chip and sign” which means you will still have to sign for your purchases.  Most chip cards in Europe are “chip and PIN” like a debit card.  Even though most establishments in Europe will be happy with your chip card, it will not be accepted for purchasing train tickets, renting bikes, or obtaining parking permits at unmanned kiosks that only accept “chip and PIN” cards. But don’t despair, eventually the U.S will convert to the “chip and Pin”, then you’ll be able to insert your card and enter a four-digit password to approve the transaction. But for now, it’s one step at a time.

A.  Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners.  Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.

5 Surprisingly Simple Strategies Critical to Successful Collections

There is an art to being successful at collections. The process requires, at the very least, some finesse to calm the “fight-or-flight response” many consumers experience when dealing with debt and those who collect it. Before you send out your first statement, there are some simple strategies you should be using that will make recovering money owed to you easier to do.

1. Accurate and detailed demographic information – This might sound like a no-brainer, but I can’t tell you how many accounts we’ve received for collections that are missing critical information. This type of information would include: name, address, home/cell phone numbers, date of birth, Social Security number, marital status, and place of employment. Don’t forget address and phone number of employer.

2. Have a financial agreement or contract in place – It’s important you communicate a clear understanding of your expectation of payment for services (or goods) received. Get legal advice when writing your agreement because the language in these types of documents is extremely important, especially if you want to be covered in case you have to take legal action in order to receive payment in full.

3. Verify information – When you have the opportunity to provide ongoing services, verify the information listed above each and every time. Please do not verify by asking, “Has anything changed since your last visit?” Many times this question will be answered with a “no” even when the answer is “yes.” In a medical setting, many patients only think about their insurance when contemplating changes and will answer “no” even though they might have moved a while ago. When verifying information always give the information you have on file, such as, “Do you still live at 1313 Mockingbird Lane, and can we still contact you at 555-1234?”

4. Due date – You don’t want your statement to end up at the bottom of the stack of bills. When sending out statements always have an actual due date. “Upon receipt” and “within 30 days” are ambiguous terms that oftentimes provide wiggle room for delaying payment.

5. Start your collection process quickly – When a due date has come and gone and no payment has been received, it is important to have a protocol in place in order to start the collection process. It could be a friendly reminder phone call or a letter–whatever you decide–but have a plan and begin it quickly. Fact: the older a debt becomes, the harder it will be to collect.

I know none of these tips are new or shocking, but sometimes reviewing the basics and making minor changes can result in major improvements.

Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners.  Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.

ICD-10: Ready or Not Here It Comes

The compliance deadline for health care providers, health plans, and health care clearinghouses to transition to ICD-10 is October 1, 2015. The implementation of ICD-10 brings with it a host of emotions: anger, anxiety, and denial are just a few. The original launch date of ICD-10 was slated to take place in 2011. The “false alarm” start dates since have made it kind of reminiscent of Aesop’s fable, “The Boy Who Called Wolf.” But, after last month’s (February 11th) hearing, “Examining ICD-10 Implementation“ conducted by the Energy and Commerce Subcommittee on Health, it appears as if it will be out with the old ICD-9 and in with (I won’t say new) ICD-10 on October 1, 2015.

Are you ready?

Many proponents of the October 1, 2015 transition say that the almost 40 year old ICD-9 is antiquated and the expanded ICD-10 is an important part of bringing our healthcare system into the 21st century. They are ready and have been, delaying will only cost them more.

Opponents, like the American Medical Association (AMA) remain concerned about costs and impacts of the codes. The AMA has considered ICD-10 to be a massive unfunded mandate that comes at a time when physicians are trying to meet several other federal technology requirements and risk penalties if they fail to do so.

Before the February 11th hearing, the Government Accountability Office was asked to conduct a study on the readiness of the Center for Medicare and Medicaid (CMS) and the transition to ICD-10. Their report confirmed that CMS was prepared, but there are concerns that CMS cannot handle this huge undertaking.

Dr. Michael C Burgess, an obstetrician/gynecologist from Texas, spoke at the Energy and Commerce Subcommittee on Health hearing. “All roads eventually lead to CMS,” he said. “And if you will pardon me, that does appear to be a weak link in the chain….When CMS flips the switch, something breaks. Any time they flip a switch that involves the processing of data, their systems fail.” Dr. Burgess went on to ask, “What is the contingency plan for any problems that may develop?” He talked about how he asked about contingency plans before the launching of Healthcare.gov and was told that they were not necessary—no contingency plan was needed for the October 1st launch. “We know what happened after that,” Burgess said.

Unfortunately, it appears as if contingency planning is being left to the providers who are encouraged to have enough money on hand to cover themselves when cash flow diminishes due to delayed or denied claims. CMS estimates that the early stages of ICD-10 implementation will see denial rates rise by 100-200% and days in A/R could grow by 20-40%.

CMS has been conducting both acknowledgement and end-to-end testing to help ensure readiness. ICD-10 acknowledgment testing is available any day of the year up to October 1, 2015.

Acknowledgment testing is a way to determine if a claim can be accepted by a Medicare Administrative Contractor for settlement. This type of testing will only let you know if the sample claim can be accepted for processing. It is not the same as end-to-end testing, which processes a claim through all Medicare systems to produce an electronic remittance advice.

 

If you are not sure what type of testing you are eligible to participate in MLN Matters® Special Edition Article SE1501 explains the differences between acknowledgement and end-to-end testing with Medicare.

CMS has a website to help providers with their action plan. I’m sure you’ve heard of it, Road to 10. There are only 210 days left until October 1st. Will you be ready?

A Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners.  Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.