By October 1, 2015, ATM machines around the country are mandated to be compliant with EMV technology. But while that date looms largely in the minds of credit union managers across the U.S., a report at Payments Source showed many merchants still aren't ready to accept chip cards, and that could open credit unions to a world of different scenarios.
Consumer awareness is high
Even though many consumers don't understand the ramifications of EMV or chip cards, they have heard about the technology and want to have secure methods available to access their funds. Merchants may not perceive any threat to their operations, but a failure to upgrade could pose problems with customer satisfaction and subsequent traffic through the door.
Future proofing, said the Payments Source, can help businesses alleviate customer concerns and retain their business by being viewed as proactive. EMV solutions that are deployable and adaptable are what credit unions are looking for and companies have developed some truly impressive machines that are quick, efficient and compliant.
An in-depth report at First Data described the many facets of EMV compliance for ATMs and said that for financial institutions in the United States, a magnetic striped card (the current model) costs about 15 cents while the new chip cards average between 2 and 3 dollars per card. First Data explained that while it's a considerable cost difference, most institutions will find that the cost is offset during a short time frame by fraud reduction savings and re-issue charges. The liability shift that comes with the changeover is also a major incentive to comply with the new regulations in time, said the report.
The U.S. is still moving slowly toward EMV adaptation, and there's no concrete word on how many institutions will be ready by October of next year, but the changeover is going to happen. Credit unions need to be able and ready to help merchants make the switch over and stay updated as the technology changes. Changes in how payments are made is another eventuality, and union managers are finding customers want them on the cutting-edge of this and other services as the ATM Market grows and evolves.
August 29, 2014