Your members may not realize it yet, but starting October 1, all cardholders will have a new credit or debit card equipped with an embedded computer chip. This marks a sea change in the way U.S. credit unions and banks manage credit and debit card fraud. Stores, restaurants, bars and other merchants who historically completed transactions via the swipe-and-sign method are gearing up to accept chip cards, and risk-averse retailers may stop offering swipe-and-sign altogether – affecting your members' way of paying for goods and services.
While most people who work in the financial services and retail sectors know chip cards are coming and that fraud liability is shifting, it's likely that many of your members aren't aware. Even if you provided an explanation to them via an enclosure in the new card mailing, it's entirely possible that they didn't read or understand it – they may have just assumed the new card was one of the periodic updates all credit unions and banks send to members and customers. This makes the implementation of EMV a golden opportunity to connect with members and build a closer relationship.
Here's how to use the EMV transition to bring your members closer:
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1. Let members know what to expect. Instead of just pushing out a message that tells them what to do (e.g. card activation instructions), take the opportunity to let members know what to expect when EMV becomes the standard. You can provide information on why the change is happening and how it will affect their accounts and relationships with merchants. This is also a great time to verify member contact information and ask about their preferences for receiving updates via voice, text, email or mail.
2. Ensure communication is consistent across all channels. When creating a communication campaign around EMV implementation – or any other topic, for that matter – it's vitally important to ensure consistency across all platforms. Although members often have distinct opinions on which platform they prefer, today's credit unions tend to contact members across multiple channels, including online, social media, call centers, text and automated voice. It's critical to respect member preferences and ensure that EMV implementation messages are consistent across every platform.
3. Sell the safety and security benefits. Hacking incidents such as the Target and Home Depot data breaches have increased member awareness of the dangers of identity theft, but unless a member has personally been the victim of credit or debit card fraud, they may not realize the extent of their personal risk. The fact that half of all credit card fraud occurs in the U.S. even though Americans account for only 25% of total transactions underscores the point. So as part of your EMV outreach, you may want to inform members that chip technology is proven to be more effective in reducing fraud and the reasons why.
As an industry insider, you're aware of the coming shift and fully understand its implications. Your members have likely heard different stories. This fall, members will be hearing news that EMV deployment is complete, and the way they pay for goods and services (and approach fraud prevention) will fundamentally change. Members will need help from a trusted source in setting the record straight and understanding how the change will affect them. They will value your assistance if you communicate the process and benefits clearly and concisely.
Every opportunity to communicate with members is a chance to make a deeper connection with them, so when you're reaching out about the EMV transition, make sure you walk them through the process thoroughly, communicate consistently across all platforms and ensure they are aware of the security benefits of the change. By following these steps, you can make sure the transition to EMV goes smoothly, and you can also build a trusting, long-term relationship with your members.
Tara Kelly is founder, president and CEO of SPLICE Software. She can be reached at 403-720-8326 or [email protected].
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