All-at-Once EMV

All-at-Once EMV

Why some CUs choose to roll out chip cards all at once.

March 28, 2016

Financial and operational limits pressed most credit unions into rolling out EMV (Europay, MasterCard, Visa) cards to their members over time.

And while card processors generally recommend that approach, some credit unions have decided to adopt EMV all at once.

Mass reissuance makes sense for some credit unions, says Tom Davis, CSCU’s senior vice president of finance and technology. Those that go that route do so, he says, largely for one of three reasons:

1. They’re killing two birds with one stone

The reissuance is being done in coordination with another project such as a brand changes from Visa to MasterCard, or significant changes to their loyalty program.

2. They view the counterfeit fraud risk as too great

The credit union has crunched the numbers and the cost of the reissuance is worth the cost of the potential fraud losses in their portfolio.

3. They want to reassure their cardholders

Given the media attention focused on high profile breaches in recent years, the credit union want to give members a greater sense of security.

Schools Financial Credit Union in Sacramento, Calif., decided to undertake the “big endeavor” of a mass reissue of both credit and debit cards.

“We wanted to stay in front of the fraud liability,” says Steve Langley, vice president of member services/chief retail officer for the $1.6 billion asset credit union.

As EMV becomes more prevalent in the marketplace, more credit unions are joining credit unions such as Schools Financial.

“Most elected to do a natural reissuance versus a mass reissuance. But as time wore on we saw more of our clients come back to us and want to do a mass reissuance,” says Chole Casber, EMV product manager for TMG.

These credit unions see it as a “business decision” to keep up with the marketplace. “They want to be more proactive,” Casber says.