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For $2 billion/220,000-member Langley Federal Credit Union, Newport News, Va., which serves NASA and Air Force personnel as well as many large SEGs, overseas travel is the norm and many members were already familiar with chip cards.
AVP/Support Services Ann Johnson used EMV technology as the catalyst to rebrand her entire credit card portfolio in May of 2013, first switching from MasterCard to Visa, and then introducing three new card types with the chip technology.
“We segmented the cards into a low-rate card, rewards card and cash-back option,” explains Johnson. “All contain the new chip with enhanced security used as a focal point in branding.” The CU first introduced the cards on a limited basis – for those who wanted the EMV technology and new card offerings. Thirteen months later, it converted all cards to the new technology.
Langley FCU made the move to EMV early because of the number of military members who either live or travel overseas. “We started by placing information about the technology on our website and how living or going abroad would be easier,” says Johnson. “We also encouraged members to apply and switch to the new cards before the mass issue.” With the offering of three cards, members could choose their program based on individual preferences. If they didn’t reapply, balances would transfer to the CU’s new Visa chip card with their original credit line and same card parameters.
Johnson says many members were concerned about security or had been impacted by fraud. “They welcomed the chip card without question and were glad for the added security protection. They weren’t interested in the details, like how chip tokenization works or the history of EMV. They simply appreciated a better card that would work overseas.” Using the card carrier, the CU explained how to insert the card at the bottom of the terminal and what to do if members were not at a chip-enabled terminal.
Since the CU’s mass issue of 26,000 chip-enabled credit cards in August of 2014, there have been very few concerns. “The machine will tell your member what to do; it will detect if the card is chip-enabled, whether to swipe or insert, and when the transaction is complete,” says Johnson. Like other CUs, Langley FCU is now waiting for merchants to catch up and enable their chip software.
With the EMV credit card integration behind it, Langley FCU is now focusing on testing the chip technology with its debit cards. The CU plans to reissue about 80,000 debit cards in late 2015. “We’ll use an insert communicating the change instead of a specially designed card carrier here,” says Johnson. “It will reduce costs while still delivering our message.”
The challenge on the debit side has been finding terminals to test that take a debit chip card because so few merchants have updated their terminals and the lag time in converting networks and processors.
“Our priority is to protect our members, and it was well worth it for us to do a mass reissue of cards,” stresses Johnson. “Our primary message is the peace and comfort of using the new chip technology. We wanted everyone to feel protected.” The CU is also enjoying success with its new product launch. Johnson reports that the CU has grown its credit card portfolio balances by 60 percent since 2013.
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.
