FORT ATKINSON, Wis. — If waiting is the hardest part, why not do away with the wait?
That's what two credit unions did when they implemented instant issue for their cards programs. "Instant issuance strengthens the relationship with our members, reduces the number of inactive cards and generates additional non-fee income, which is essential in today's environment," said Bill Carhart, CEO of Oswego County FCU.
The CU implemented EFT Source's Card@Once, which provides personalized ATM and debit card programs, resulting in increased interchange revenue with total transactions climbing nearly 40% over the last year.
During the first year of use, average transactions per month increased by more than 22%; the average checking account balances increased by 20%; active cards rose by 20%; and total spending increased by more than 17%.
Oswego County FCU also employs the vendors "My Points Plus" program. This rewards points per transaction to members on eligible purchases that can be redeemed for travel, merchandise and gift cards, noted Carhart.
"EFT provided a seamless process — from installation to card production," said Carhart. "Its ability to quickly deliver cards aligns perfectly with our card-centric strategy and provides a distinct competitive advantage."
Beating Fraud and Security
Fort Community Credit Union also has been using the Card@Once platform for more than one year. Previously, the CU had to order replacement cards from a faraway factory. Next they waited as the cards were processed and shipped to either the main branch or couriered to a member. This process took up to a week, explained SVP of Operations Sue Johnson.
Since the program has been in place, more than 1,700 cards have been issued to members. The cost is $4.95 and members can select from six different designs. "We charge for new accounts or replacements for damaged cards," said Johnson. "If the card has been compromised due to a data breach or card fraud beyond the member's control, we do not charge the fee to instant issue the replacement card. We also give new teen checking members a free instant-issue card."
Currently, the technology is available in three branches.
From a technology perspective, the platform requires that the powered printers have a DHCP internet connection. EFT Source then communicates directly with the printer via a secure web service call. "EFT Source manages all of this and maintains the PCI compliancy," said Johnson of the "user-friendly" solution. "No additional servers are needed."
In March of 2014, Fort Community CU was a victim of a highly organized phishing scam where members and non-members received robo calls about their MasterCards being locked. Johnson explained that approximately 75 members fell for the scam providing the crooks with card and PIN information.
Within the next few hours, the fraudsters conducted "a brute force attack on those card numbers" and managed to counterfeit the magstripe. The cards were used at an ATM in Italy where accounts were drained.
"I was contacted by our fraud department on a Sunday morning and had to close several members' cards. One member that I contacted was leaving for a trip within the hour and needed access to his funds," recalled Johnson. "Because we had instant issue, we were able to print him a new card at 11:30 on Sunday morning and send him on his way."
Aside from the fraud stack, the only other hurdle Fort Community CU experienced was during the publicized Target Breach. "We did have issues with the system not being able to keep up with high volume when the Target Breach was first announced, but that was quickly resolved by Card@Once," said Johnson. "I don't think that anyone was prepared for the high number of cardholder's that contacted their financial institutions requesting to have their card reissued."
