More than a dozen credit unions will begin offering members the option of purchasing prepaid cards equipped with computer chips, according to PSCU, the payments CUSO which is processing the cards.
The chip cards, equipped with the so-called EMV technology, have become the industry standard in Europe, Canada and parts of Asia and will be offered to members traveling to those regions. The cards will also carry a magnetic stripe to enable their use in the United States, the processor said.
“We’re on a mission to keep credit unions in front of the demand curve,” said PSCU CEO Michael Kelly. “That means decisively seizing emerging technology opportunities to give our credit unions a leading role in the payments market. We are the first financial services provider to launch prepaid EMV cards in the U.S., and we’re empowering credit unions to attract more members and reach consumer segments that need both domestic and international spending power.”
Chip-enabled cards have made inroads with some financial institutions, including credit unions, as more of their members found traveling with magnetic stripe cards difficult and inconvenient.
In addition, cardholders also gain stronger security with enhanced card authentication, cardholder verification and transaction authorization, the processor said.