Even as credit unions move toward adoption of the EMV (Europay, MasterCard, and Visa) standard for their credit and debit cards, they must continually address other fraud channels.
Steve Langford, information technology director at Georgetown Kraft (S.C.) Credit Union, notes that fraudsters have redoubled their focus on traditional fraud schemes as the window of opportunity with magnetic-stripe cards begins to close. EMV's emergence also has pushed fraud online and into other card-not-present channels, reports Mercator Advisory Group, Inc.
Credit unions also must look beyond EMV to emerging technologies such as near-field communication and tokenization, which fuel Apple Pay, digital wallets, and other payments platforms, according to a CUNA Operations, Sales & Service Council white paper.
"I think it's important that members, staff, and volunteers clearly understand that EMV isn't the answer to mitigate data breaches," says Ben Morales, operations officer at $2.1 billion asset Washington State Employees Credit Union in Olympia.
At his credit union, "we're making several bets on the future of payments;' Morales says. "We're deploying EMV, we're participating in Apple Pay, and we're invested in a digital wallet solution. The industry is evolving quickly. Credit unions must prepare to adapt and make a bet on the payments future. Waiting is not a strategy."
Although plastic card transactions will decrease over time, expect consumers to rely on cards for years to come-which makes an investment in EMV worthwhile, says Dean Stewart, senior director of self-service product management at Diebold Inc., a CUNA Strategic Services alliance provider.
"To physically see and choose the right product at the right time will be important," he says. "Not only that, but some people won't have the newer technologies and will still rely on conventional payment methods."