Chip Migration for Credit Union Debit Cards.
As the Cooperative Node Chip Program reaches the
halfway point of the first year whereby compliance
targets must be met, it was important to review the
original strategic objectives of the program and provide
members with information specific to our progress.
The program’s original
strategic objectives were designed to:
1. Comply with Network Mandates
Interac, MasterCard and VISA, have mandated
compliance by which all members must be chip
enabled.
2. Mitigate Financial Risks
Chip cards and terminals will provide the credit
union with better security and help mitigate fraud.
3. Protect Credit Union and Credit Union System
Reputation
Chip technology will provide our members with a more secure method of
financial transactions and the implementation of
chip allows us to continue to be
competitive with other financial institutions that are
implementing chip and to avoid negative
competitive differentiation.
As of June 25th there are 433 out of 1,225 credit union ATMs that are now chip-enabled across Canada, which
represents approximately 39% towards our 90%
compliance target for year-end.
Debit Card Fraud
While Interac services are among the most secure in the
world, debit card fraud can occur. In an effort to combat debit card skimming and the
production of counterfeit cards, credit unions are
transitioning to chip - a new generation of payment card
technology. Chip technology provides the card with
processing power, allowing the card and the terminal to
communicate and carry out additional security checks to ensure the card is valid. The full security of a chip
transaction is achieved when a chip debit card is
inserted into a chip-capable terminal. |