BETHPAGE, N.Y. — Growing concerns here regarding the risk of debit card fraud led Bethpage FCU to be the first CU to partner with CO-OP Financial Services and its CardNav app. After a 60-day trial, members are embracing the solution.
"We were concerned about the risk of debit card fraud, including increased merchant compromises," said Bethpage FCU AVP-Operations and Risk Shanta Sewnarain. "We believe providing a tool to our cardholders and encouraging its use can help mitigate losses and protect our members."
According to Total System Services' (TSYS) 2014 Consumer Payment study, debit cards remain the most popular payment method at 43% with credit cards yielding 35% of majority use. The report also found fraud is a leading concern for respondents.
"Consumers have a heightened awareness of security due to both the media and their own experiences," the report stated. "We found that consumers are interested in tools such as transaction authorization controls, instantly viewable transactions and text message alerts to help them protect their accounts."
The Rancho Cucamonga-based CO-OP developed the CardNav app so members have the ability to decide when, where and how their mobile credit and debit cards are used in advance and in real-time, noted Bill Prichard, senior manager or public relations and corporate communications.
To ensure the app solution would be a good fit for the CU industry, CO-OP looked to Bethpage FCU as a litmus test of sorts. "The trial came about through understanding the whole concept of how CardNav by CO-OP works, and what it would provide to the member in terms of overall experience. We then proceeded to testing and implementation," said Sewnarain.
Trial to Launch
The 60-day trial included creating test cards, certification, setting controls, alerts and processing real time transactions. "Various scenarios and transactions were tested to ensure a simple and intuitive member experience," Sewnarain added
Prichard explained the market-ready app enables credit unions to provide their members with full control of their credit and debit cards. He added that user-specified controls for card use include on/off, location, spending limits and transaction and merchant types, with the same parameters governing real-time alerts.
Since Bethpage FCU officially launched the app on Oct. 16, Sewnarain said that user statistics are not yet available, but initial feedback is promising.
"We had a successful pilot phase with very positive feedback from our testers, which included about 30 of our credit union employees," noted Sewnarain. "One tester shared that his usage control was set as my location.' His location is New York and he received an alert for a transaction in New Jersey. CardNav immediately denied the transaction based on location."
Another early member adopter told Sewnarain: "I know immediately when and where my card is used. I can block specific transactions and merchants, and place my spending limit on a budget. It is just awesome, and I wish we had this a long time ago."
The app is easily downloaded from the App store or Google Play to an iPhone or Android. With regard to training, Bethpage FCU is providing a simple user guide, FAQ document and help support on the app.
"Although we are still in the early stages of the service, we anticipate that the savings will be in the form of reduced fraud losses," Sewnarain said. "We are currently targeting a specific group of members to determine fraud savings, based on the users of CardNav versus those who are not using it."
Now that it has been determined a proven fraud blocker, Sewnarain said next steps will be a promotional campaign. "It is an optional tool for our members, so marketing and member awareness will be key to increased usage, so that both our credit union and our members will benefit from reduced fraud."
