SAN DIEGO - When it comes to credit and debit programs, credit unions should focus more on overall revenue and not try to determine which platform will be most popular with members, according to Ron Silvia, director of debit services with PSCU Financial Services.
Silvia told PSCU-FS’ Member Forum that both signature and PIN debit transactions continue to grow. “Debit card payments are growing at the expense of cash and checks. While some consumers favor one platform over the other, most still like to have a choice,” he said.
Credit unions need to focus on areas they can control, such as costs, he reported. “Credit unions cannot control interchange rates but they can control costs. One of the best ways to reduce expenses is to reduce the number of networks involved on the backend and to use surcharge free networks,” according to Silvia. “One credit union reported saving $80,000 by shifting from one network to another and significant savings can be gained by eliminating unnecessary networks and surcharges.”
Acquiring DDA accounts and conducting target marketing are both important to a profitable program, he said. “Checking accounts remain a dominant force in the member relationship. Credit unions should focus on opening checking accounts with new members and offering debit cards automatically,” he said.
