By Bob Hackney
The October 2015 EMV/Chip Card liability shift date now is only 90 days away. This past year continued to see its share of high-profile data breaches at large national retailers, making EMV adoption by issuers and merchants a high priority. EMV implementation is a top initiative for the payments industry, and it will remain a focus throughout 2015 and beyond.
Mag stripe technology has served the industry cost effectively for decades, but its susceptibility to counterfeit fraud in the wake of data compromises indicated it was time to move to the more secure technology—EMV. EMV addresses counterfeit fraud by creating a different and unique CVV/CVC value with each authorization. While EMV will not prevent a data breach, it will render the data compromised useless as EMV technology replaces static CVV/CVC values. Perpetuating the mag stripe will only perpetuate counterfeit fraud.
It is with a great sense of pride that CSCU, with the benefit of its partnership with FIS, announced a plan whereby CSCU will cover the FIS EMV enablement costs for our member credit unions. This represents more than $11 million in value to our members if they were to pay for it themselves. It is our way of returning value to our member credit unions for their past and future loyalty and support of CSCU.
With CSCU providing the funding for EMV enablement costs, our members can finalize their reissue strategy—whether to target select groups—such as international travelers and the affluent—normal reissue over two to three years, or mass reissue.
The Importance of Employee Education
It is also important to provide internal employee education, particularly with member-facing teams. In addition, your credit union members will require consistent communication and education about what’s coming. This could include educational materials on what is a chip card; why it is necessary; emails with links to videos on inserting a chip card; and statement messages and inserts. To support member EMV efforts, CSCU provides marketing materials in addition to our EMV thought leadership and educational initiative called EMV ASAP. Members can learn more, by visiting www.cscu.net/EMV, or by working with their CSCU portfolio consultant.
As for EMV debit, CSCU is also funding those enablement costs for our members. Just like EMV credit, credit unions need to prepare for debit implementation with a well-thought-out plan that includes a reissue strategy, employee training, and member communications and education.
For over 25 years, CSCU has provided knowledge, expertise, and value in an industry and a world where constant change is now the norm. We are driven by the same principles that guide credit unions, and we will continue to provide customized, holistic solutions that maximize value for our members. We remain committed to the success of each member and the entire credit union industry.
Bob Hackney is president/CEO of CSCU, St. Petersburg, Fla.