EMV 101 for your members
Do Your Members “Get” New Features?
As credit unions roll out more and more new technology, bringing members up to speed is an escalating challenge. EMV is a case in point. With a liability shift scheduled for this October, many credit union card issuers are rolling out chip-enabled cards. Security-conscious consumers are primed for this change: Last year, the number one consumer complaint received by the FTC was identity theft. But just because your members want enhanced security doesn’t mean they’ll know how to use a new chip-enabled card. Some may not even realize their new EMV-ready card is different — or how.
No doubt you’re aware that EMV is being implemented on a massive scale. In fact, over 2 billion payment cards are chipped around the globe and by 2016, it is estimated that 500 million cards will be EMV-ready in the U.S. according to EMVCo. While a traditional magnetic stripe card is easily counterfeited by criminals, EMV technology is effective in combating this type of fraud through its dynamic authentication capabilities.
Although the benefits of EMV are clear, mainly enhanced security and fraud reduction, what makes them different and how they are used may require a slight adjustment for your members. For this reason, it will be important to provide practical education. For example, EMV enabled cards will look very similar to traditional cards, the key addition being the visible chip on the front. Without explanation, members may wonder what the EMV chip insignia means, or they may dismiss it as decoration. By the way, while it may appear to be an exposed microchip, the chip on the front of the card is actually a protective cover that is visible, not the actual chip.
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