The Deadline Every Church Must Know

By Raul Rivera

Many churches use credit card readers to process various transactions such as conference or retreat registrations, weekly giving, and purchases made within a bookstore or cafe that the church may operate. Because of this, churches need to be aware of the fast approaching October 1st deadline.

New credit card readers required

In an attempt to greatly reduce credit card fraud, all merchants, both large and small, including churches, will be required to implement a new credit card reader system by October 1st, 2015.

Named after Europay, Master Card, and Visa (EMV), the new EMV cards include a computer chip embedded in each card, which creates a unique transaction code upon each use, thus making it much more difficult for one to make fraudulent purchases. The “magnetic strip” credit cards used prior to EMV cards posed a problem in that when someone copied the magnetic strip on a credit card, he or she could easily replicate the data it contained over and over again because it did not change.

The current “swipe machines” that read the magnetic strip on credit cards will need to be replaced with new credit card machines that accommodate EMV cards, which has become the new global standard. Instead of “swiping” the EMV cards, they will simply be “inserted” (similar to that of an ATM machine) into the new credit card readers. Once inserted, the credit card machine will read the computer chip, authenticate it, and then require either a personal identification number (PIN) or a signature from the card holder.

Because the United States is leading the world in credit card fraud, the EMV card will eventually replace the credit cards with magnetic strips. Perhaps you may have already received an EMV card since many banks and financial institutions have already begun the process of distributing these new cards. Smart Card Alliance even estimates that by the end of 2015 an additional 600 million EMV cards will be issued across America.

Doing church is changing fast!

I believe that the Church today is resilient. The message that there is but one way to the Father is still its central message. I also believe that the Church today is resourceful. Although the message remains the same, it is a fact that “church” is not and cannot be done the same way it once was.

It is a common and natural occurrence that as time passes, our society, culture, and institutions grow and evolve in order to cater to the ever present change taking place around us. Over the past several decades, change seems to occur at a faster pace than it once did. Much of this accelerated change can be attributed to the technological strides that have been accomplished. With the click of a few buttons we are now able to video chat with someone on the other side of the world, we are able to receive breaking news in real time, and we have a plethora of information on any topic available to us.

These technological advances have even influenced today’s church. For instance, the collection of tithes and offerings is not solely done by the passing of a collection plate on Sunday mornings. Rather, many churches have implemented other modes by which their congregants can give, such as online giving, kiosks for weekly giving, and more recently a “text to give” option. These additional avenues make it easier and more convenient for congregants to give, and it is a direct reflection of the influence technology has had on our society.

A shift in liability

Now, maybe you are wondering how this deadline affects churches. What are the consequences for not complying with the requirement for new credit card readers? Well, traditionally, when fraudulent charges appear on one’s credit card, either the bank or the financial institution that issued the card takes responsibility for the fraud. However, beginning on October 1st, 2015, the liability will shift to those who still choose to use the older credit card systems.

This means that if your church processes a payment using an older card reader and someone gains access to that credit card information, the church will be liable if fraud is traced back to the church.

Perhaps you are thinking, “My church doesn’t even currently use credit card readers, so why should we be concerned?” Well, I believe that the more you know, the better. Even if your church does not use credit card readers, you should plan to protect what God has given your church. For many churches, any size fraudulent charge on the church’s credit/debit cards could be a tremendous setback. I want to encourage you, if you have not already received an EMV card from your church’s bank or credit card company, contact them requesting to receive a new EMV credit/debit card.

What to do moving forward

How do you go about making this change? If your church uses credit card readers then you should have been (or will be) contacted by the organization that provided you with the credit card reader. If you have yet to be contacted, do not hesitate to reach out to them and inquire about the steps you should take in order to make this adjustment by October 1st. It is important to note that this also goes for the mobile card readers that can be used with smart phones and/or tablets.

I believe it is safe to assume that churches want to protect their members’ privacy. Additionally, I believe that members of churches expect their donations and other transactions completed at the church to be secure. Therefore, do not hesitate to make any necessary changes that benefit the security of your members.