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Posted: Jun 15, 2017
Categories: Emerging Payments
Comments: 0
Author: Lou Grilli

The Growth of ACH and the Decline of the Personal Check

[Editor's Note: This article was previously published in CU Management magazine on Cues.org and has been modified]

Two sets of numbers were recently released by NACHA and the FED, respectively: ACH transactions are up over 5%, and checks are declining by 2%. Neither of which are eye-popping numbers, but when taken together, raises the question: what does this mean for credit unions?

First a deeper dive into the growth of ACH. NACHA is a not-for-profit responsible for managing, governing and administering the ACH network. The most recent numbers from NACHA’s president, Janet Estep, claimed that ACH transaction volume rose 5.3 percent to 25.5 billion, representing a transfer of $43.7 trillion. While 5.4% growth sounds slightly anemic, a denominator in the billions takes a big numerator just to move a few percentage points. And to complete the math, that’s an average transaction of $1,748.

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Posted: Apr 19, 2017
Comments: 0
Author: Lou Grilli

The breach involved malware placed on payment systems inside Arby’s stores

Very recently another major breach of payment card data was made public, this time by Arby’s. The breach compromised more than 355,000 credit and debit cards at Arby’s 1100 corporate-owned stores nationwide.  The breach, which is estimated to have occurred between Oct. 25, 2016 and January 19, 2017, involved malware placed on payment systems inside Arby’s stores. And this comes at a time when many credit unions are still recovering from the losses and costs associated with the recent Wendy’s breach, which was also large-scale, as well as massive breaches at Target and Home Depot and several others over the last two years.
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Posted: Apr 13, 2017
Comments: 0
Author: Lou Grilli

As it turns out, a lot less than your username and password.

Credit and debit card numbers obtained by fraudsters through breaches at the POS used to fetch $5 and up on the dark web, to be used as counterfeit cards or used for fraudulent online purchases. But a recent webinar presented by the Aite Group, using data from Trend Micro, showed some eye-opening data, that a PAN with expiry and CVV is worth less than a quarter. Meanwhile a valid PayPal username and password is worth over $6, with Uber and Facebook username/password combinations going for around $3. What has changed?

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Posted: Mar 7, 2017
Comments: 0

A significant 16% year-over-year increase in interest income on balances.

As competition increases in the financial industry, more credit unions are embracing new marketing strategies to drive revenue and grow their business portfolios. Marketing support has become one of the most sought after business resource among credit unions who wouldn’t normally employ special marketing campaigns. Some have found it more beneficial and cost-effective to outsource this function or seek assistance from external providers to execute campaigns. President of PeoplesChoice Credit Union, Luke Labbe shares his experience in using CSCU’s 12 month marketing program, Optimize Portfolio Growth Solutions, to re-energize their 25 year old card program.
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Posted: Jan 18, 2017
Comments: 2
Author: Lou Grilli

Imagine a day when data breaches yield no usable card numbers.

While many authors are making their predictions for 2017, predictions for battling payment fraud need to take a much broader view. Imagine a safer world of payments where credit and debit card fraud is mitigated through technologies. The mag stripe is gone forever, and mobile payments as well as terminal-free check-outs rely on tokens instead of an actual 16 digit Primary Account Number (PAN). And for those who still insist on holding a piece of plastic in their wallet, cards will have smart security measures – a biometric scan device on the card to prevent lost/stolen usage; geolocation capability built into the card to assist in POS authorization; and a dynamic PAN and CVV displayed on a screen on the card for use in ecommerce purchases to prevent fraudulent online use.
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