Integrating credit card processing with your credit union
To date, credit unions have been faced with the choice of providing credit card processing in-house or outsourcing. Historically, only big credit unions ran in-house credit card processing. Smaller CUs shied away from credit card processing due to a variety of factors: It was expensive to do so in-house, and outsourcing was often difficult to integrate with the core. Furthermore, the rewards programs were not up to par with those of banks and larger FIs, which made them less desirable to members. Now, with increases in integration capabilities and decreases in cost, credit unions of all sizes are incorporating integrated processing capabilities. Here’s why credit unions big and small have opted for integrated credit card processing.
Now that more credit card processors are on the market, and core technology has evolved, the integrations between the two continue to improve. With better connections to the core, a higher volume of member data is now accessible on member spending habits. Understanding how members shop and use their cards, credit unions can structure rewards programs around their members’ habits and interests. As a result, members are more engaged with CU credit cards than ever before.
For credit unions that are wary of taking on the burden of in-house processing, there are vendors who can not only manage the process, but customize solutions to the needs of the CU. When choosing a vendor, it’s important to consider the goals in offering integrated processing. Whether it be better rewards programs to attract new members, more features, or improved reporting capabilities – these aspects will help guide the selection process when considering vendors.
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