NEW YORK-United Nations FCU migrated to EMV more than a year ago and usage on its credit card portfolio has increased 30%, while revolving balances are up 25%.
The $3.7-billion UNFCU was the first in the nation to deploy a chip card, primarily because a large percentage of its membership travels or lives overseas.
"I was questioned two years ago when news of our intent to convert to EMV hit the press," said Merrill Halpern, AVP. "Reporters asked me, 'Why are you doing this? This is expensive.' But we had to do it for our traveling and overseas members."
The business benefits have been somewhat surprising, acknowledged Halpern, who attributes the greater balances and usage to the fact members now put the CU's card top of wallet. Prior to offering a chip card, UNFCU mag-stripe plastic was not regularly accepted overseas.
"If you have a card that is not usable at certain times, like for transit tickets, you tend to use another card as your regular credit card. Now our members know they can depend on our card."
Halpern offered a hypothesis about why UNFCU card fraud costs are down by almost one-third, saying that many uses for credit cards in Europe are at transit stations, easy targets for card skimming at the unmanned ticket kiosks.
"We are no longer leaving mag-stripe data behind. EMV has already paid for itself on a pure card-cost basis. We have other expenses due to global distribution of the cards." Halpern said cost for chip cards was less than twice the expense for mag stripe.
A signficant percentage of UNFCU members are familiar with chip technology since many live or travel outside the U.S. But Halpern noted that most U.S. residents are not accustomed to EMV, and those members need to be educated about the card. "You need to allay fears. Most people who get this card and have not traveled don't know what it is. EMV has to be explained to them, that it is simple and something they will soon see all over their local town."
