Is it possible that your card processing operations evolved from a different era? If you work with multiple vendors for PIN and signature debit, credit and ATM processing, chances are good you're ready for a retooling. Although your multivendor system may have enabled you to get to this point, centralizing your processing with a single vendor may offer significant advantages for the fast times ahead – including ease, value, opportunity and agility.

How did so many credit unions end up with multiple vendors?

“In many cases, credit unions didn't have the option of choosing a single processor for debit, credit and ATM when they started those operations,” said Lynn Kneebone, national sales director at CO-OP Financial Services. For many, acquiring multiple processors was the only practical way forward. Now the options have changed, but many credit unions haven't made a priority of streamlining their processing vendors.

How do you stand to gain by processing your debit, credit and ATM transactions with a single vendor?

Create ease. Complexity is baggage. Every discrete vendor, system, interface, contact and contract is a point of complexity. Problem one: Redundancy. What if you could cut the time it takes to perform routine reporting tasks in half? Consolidate down to a single system, and you can run your reports in a single session.

Problem two: Confusion. Here's an algebra problem you didn't see in school. Your member has an issue with their debit card. Whose problem is it? Debit cards, remember, can authorize via PIN or signature. Having a single point of contact saves time for you and your members.

Problem three: Contracts. Negotiating contracts has become a hot topic in processing, and is now multi-dimensional, driving complexity higher. By reducing the number of contracts you maintain, you can reduce the number of occasions in which you must undergo the deal making process – less negotiation, less due diligence, less time spent with your colleagues in compliance and legal. And, fewer contracts generally translate into better contracts, as your focus is less divided.

Promote value. Reducing the number of contracts you have to manage may help you gain focus, but it also can help you achieve volume discounts – and that is a sure route to making the most of your debit, credit and ATM portfolio income.

“Credit unions are rightly focused on economics, since processing represents a large portion of their revenue,” said Eric Porter, executive vice president of Business Development for CO-OP Financial Services. “We aggregate our members' processing work, so that we're able to offer credit unions the best pricing in the market.” By combining debit, credit and ATM processing, credit unions have access to even more advantageous pricing.

Porter also notes that value sometimes extends beyond dollars and cents when choosing a processing vendor: “We are a cooperative. Our business philosophy is to work with credit unions of all sizes to find the best processing options while making good financial decisions.” CO-OP's cooperative ownership and governance, consultative approach and aggressive development of new technology are three strong examples of value that goes beyond rates.

Seize the opportunity. In today's data-driven world, integration is so critical that it's nearly cliché. What works against integration?

Multiple interfaces that prevent you from connecting the dots on analytics.
Multiple rewards programs that don't promote engagement across payments channels.
Multiple systems and points of focus that don't let you zero in on the additional technology and features that will enhance member engagement and revenue.

Gearing up for a new data-driven reality is important right now, but it's even more important as credit unions move forward. Innovation is rampant in financial services, with no signs of slowing in either the near or distant future. If your processing operations aren't built for speed – with simplicity, ease, competitive pricing, a supportive vendor relationship and 21st century analytics and rewards – you may find yourself becoming the coolest horse and buggy on the turnpike. If your processing operations aren't built for this era, it might be time to build operations that are.

Bill Prichard is senior manager, public relations and corporate communications, for CO-OP Financial Services. He can be reached at (800) 782-9042, ext. 3450, or bill.prichard@co-opfs.org.

Click here to learn about CO-OP's integrated debit, credit and ATM offerings.

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