EMV Rewind to 2010

Long before Europay, MasterCard, Visa became a popular discussion around conference room tables, members at then $3.3 billion/90,000-member (now $4.2 billion/113,000-member) United Nations Federal Credit Union, New York, were demanding the chip cards their European counterparts already had. “With 60 percent of our members living outside the U.S., and 24 percent within Europe, it wasn’t just a perk, but a necessity,” says AVP/Card Services Merrill Halpern.

Halpern, who oversees global credit and debit card services for UNFCU, helped the CU successfully launch its chip and PIN card program in 2010. “It was a long path getting there, a five-year time span. With the help of our partner and card processor, CUES Supplier member The Members Group, Des Moines, Iowa, we were able to launch the chip and PIN technology in the U.S.”

UNFCU was the first financial institution in the U.S. to offer the chip card. By partnering with Gemalto for cards, UNFCU leveraged Gemalto’s ability to work with payment processors to quickly achieve compatibility with global payment standards. Gemalto’s multi-national processing centers also enabled cards to reach foreign destinations sooner. “This ensured worldwide card acceptance and, as a result, improved members’ experience when traveling and at home,” says Halpern.

For members living in Europe, the conversion to EMV was a non-event. “All terminals already had the chip technology overseas,” explains Halpern. “Introducing the cards just made it easier for our members abroad to use their cards.” UNFCU did a mass reissue – 8,000 cards in September of 2010. “The reissue went smoothly, partly because of the amount of time and effort we devoted to member education,” adds Halpern.

Success was also contingent upon the CU sending the right collateral to the right segments at the right time.

For members living in the U.S., UNFCU developed a more comprehensive strategy. “We wanted to reassure members who weren’t as familiar with the chip cards and to have them understand why we were issuing new cards. This was especially relevant since very few POS terminals in the U.S. (at that time) had chip capabilities.” The CU also used the opportunity to promote the ease of use when traveling overseas.

Communications varied by segment, but all members received an introductory letter or email. Brochures were made available, and the website housed FAQs along with informational diagrams. UNFCU used simple messages and visuals to show what was happening throughout the process. And a series of emails communicated the card changes with links to member webinars. To prepare staff, UNFCU’s marketing team drafted talking points to use along with the online FAQs. “We had a thorough approach in our communications plan. And it worked,” says Halpern.

Paving the Way to EMV

• A brochure was created to explain the new chip card to each audience (overseas members and U.S. members).
• For overseas members, the tone was convenience and easy access to existing POS terminals.
• For U.S. members, the tone was security, how to use the card, and ease of use while traveling overseas.
• The CU shared the sequence of events digitally on its website and in print.
• Communications included online FAQs and emails.
• UNFCU explained the limited availability of chip terminals in the U.S. 
• The CU also stressed the importance of keeping the card inserted and entering the PIN.
• Finally, UNFCU reassured members that account numbers and credit lines would remain the same (with no need to reapply for the card).

Rebranding Along With the Chip

With the switch to the chip technology, UNFCU used the opportunity to rebrand its credit cards. “It was the perfect opportunity to introduce a new card designed for the world traveler, the UNFCU Visa Elite,” says Halpern. “We promoted the card’s value and new safety features for traveling.”

Reiterating the chip technology and new card benefits, Halpern fielded numerous interviews from media outlets, including New York Times, The Wall Street Journal, and Bloomberg-BusinessWeek, explaining how the cards improved acceptance outside the U.S. and combat fraud.

Not Sure how the Card Works? Take a Trip to Canada.

“We have a tremendous resource relatively easy for most credit unions to access, our neighboring credit unions in Canada, where the market is chip penetrated,” says Halpern. “Visiting a country like Canada enables you to visualize the environment right away and see how chip machines work. The mag stripe capabilities are still functional, and you can see what happens in an offline environment, which is becoming commonplace in chip markets.”

Halpern endorses a mass reissue (staggered over 30 or 60 days), so everyone feels treated the same with equal safety and protection. “It enables consistent communication to all members throughout all channels,” adds Halpern. “Break the reissue into portions so you can manage questions – but don’t wait too long. If it’s relevant, you can reissue according to portfolio segments or your most avid users, but consider a mass reissue if at all possible.”

Halpern shares that if you can build on member goodwill, while reducing the risk of fraud, it’s easier to keep your card top of wallet. And satisfied, secure members almost always come back for more services. UNFCU continues to respond to the needs of its highly mobile, global membership, recently eliminating the card’s 1 percent foreign transfer fee.

With 25 years of marketing and communications experience, Stephanie Schwenn Sebring established and managed the marketing departments for three CUs. As owner of Fab Prose & Professional Writing, her focus is on assisting CUs and industry suppliers with their communications needs.