Fraudsters continue to target the U.S. market by manipulating card information and the card-insertion process via skimmers. Using these best practices, bank and credit unions can prevent fraud and EMV fallback transactions.
There are many ways financial institutions currently define their ATM network. Some may call them “costly.” Others label them as an “account holder expectation” or a “hassle.”
Many banks and credit unions don’t realize that selecting the right ATM Managed Services vendor streamlines the channel operations and can turn a network from “costly” to “convenient.” ATM Management companies can easily provide this much-needed relief – providing financial institutions and their cardholders with a wide range of benefits.
ATM equipment can be expensive. The typical capital investment for ATM hardware ranges from $6,000 to $40,000 – depending on the size and operations capability of the machine. In addition to initial expense, financial institutions must perform ongoing operations and management to connect, maintain and service each ATM.
In some cases, regular operation requires contracts with third-party vendors. The institution will also likely incur personnel expenses to arrange and monitor each of the ATM functions. Finally, banks and credit unions must maintain ATM compliance for each machine – including hardware and software upgrades to meet security compliance, ADA (Americans with Disabilities Act) compliance and EMV chip-card compatibility.
MasterCard’s U.S. EMV liability migration deadline for point of sale (POS) and issued cards (October 1, 2015) is fast approaching. Yet, while many financial institutions (FI) and merchants are in the midst of their upgrade plans, most U.S. consumers know little to nothing about EMV.
Natalie Brooke had a great blog, “Is Your Bank Too Fat?“. “Complacency,” “low activity” and “aversion to change” are a few characteristics that can cause unwanted weight gain. In the financial world, many banks and credit unions fall into the same rut by “doing business the way we’ve always done it.”
EMV migration is going to be an expensive endeavor for credit unions. Card issuance will require licensing of authentication IDs, and production of new plastics will now cost two to three times more than magnetic stripe cards. ATMs will also need new hardware and software. On top of all of this, credit union members will need to be educated on the new payments process.