TALLAHASSEE, Fla.-With most CU investments paying so little today, Jim Park recommends that credit unions look to make an investment in their card base.
The president of CU24 is referring to the emergence of EMV cards, which he says is coming much sooner than many expect. What that means, he cautioned is that credit unions need to prepare for the change to protect their card revenue streams.
"We have one year according to Visa, if you follow their latest recommendation, which is more of a pronouncement," Park said. "They said that by April of next year every merchant will be required to accept the EMV card, the smart card with a chip. The chip-embedded EMV card has proven successful for decades in Europe, has reduced fraud, and has enjoyed expanded international transaction acceptance."
Park insisted credit unions can't wait and then play catch-up with institutions that move quickly, and should begin finding out the costs for EMV and how to get started. "There is a downside, and more than just from lower card revenues. There may be potential costs passed onto you (if you lag too far behind), perhaps by merchants or fines by the networks."
