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Posted: Jul 5, 2016
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Author: Lou Grilli

Following the switch to EMV chip cards last October, merchants that implemented chip card readers at the check-out lanes noticed something besides the initial confusion – that the time to process a transaction was taking much longer versus a simple card swipe. The time varied greatly by terminal type, but a study carried out by JDA Software Group claimed that it took an extra 8 – 12 seconds per checkout. In the retail world, those are precious seconds that can drive cost for extra labor to open additional check-out lanes.

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Posted: Jun 22, 2016
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Author: Bill Lehman

When standing in front of the payment terminal at the checkout line, the payment method chosen (credit, debit, cash, PayPal, check, etc.) really depends on the location and context of the transaction. In a study of 1000 consumers who carry both a credit card and a debit card, TSYS, a leading merchant payments processor, uncovered some consumer trends which can be anecdotally witnessed when in the checkout line. When shopping at a supermarket, 50% reach first for a debit card, while only 31% reach for a credit card.

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Posted: Jun 7, 2016
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Author: Paul Castner

A Thought Provoking Article in the Payments Journal by CSCU's Lou Grilli

You will want to take a few minutes to read a new posting in Payments Journal by CSCU’s Director of Payments Strategy, Lou Grilli, titled “What if Credit Card Interchange Gets Cut in Half?” Lou points out that credit cards are the second most important revenue source behind auto loans with interchange making up a significant portion of that revenue. Your credit union may be offering reward programs to influence your members to use their credit cards rather than lower interchange debit cards. However, as Lou points out, there are global and local factors starting to take shape that are putting pressure to lower credit interchange rates.  Lou offers some ideas and recommendations on what actions credit unions should be doing to focus new cardholder programs on revenue producing strategies that are not solely reliant on interchange.

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Posted: May 31, 2016
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Author: Bill Lehman

There was a time when a bank or credit union did not talk about fraud to their cardholders. They did not want to give the impression that their financial institution might be susceptible. The only mention was when describing the benefits of using the Visa or MasterCard brand which carries zero liability to the cardholder in case of fraud. But those days of silence on the subject are long in the past. Consumers are leery of identity theft, have started to look closely at their statements and, have learned the need to keep their social security numbers private.

 


 

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Posted: May 25, 2016
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Author: Lou Grilli

Effective October 1, 2016 for Visa issuers and acquirers, and October 14, 2016 for MasterCard issuers and acquirers, a new capability must be supported for maintaining merchants’ cards-on-file. The problem it addresses will help merchants, issuers, and most importantly, the cardholders. When a cardholder enters payment credentials into an airline’s website, for example, and then clicks the “save this card for later use”, but the card expires and reissues in between vacations, the cardholder is inconvenienced and has to rekey all of the data, possibly choosing a different card. But when the cardholder enters payment credentials into an important recurring biller, such as the power company, and expects the bill to be paid automatically on time each month, but the card is reissued and the next monthly authorization fails, then it can be much more than an inconvenience. It could mean having late fees assessed, or worse, having service turned off.

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