No surcharge ATMs are one of the core values credit unions have extended to their members throughout the years.

With mergers and conversions occurring on a regular basis the national ATM landscape now maintains a continual flux. The result is ongoing impact to cardholders and increased issuer management of ATM services. As your processing partner, we believe it is our obligation to provide you and your cardholders with no-surcharge network solutions that align with your corporate goals.

One of the ways we do this is through our participation and support of the Northwest Credit Union Alliance (NWCUA). Originally sponsored by the Washington Credit Union League, Member Access Pacific and local Washington-based credit unions, the NWCUA provides “No-Surcharge”, shared deposit ATMs throughout our region. In addition, Member Access Pacific also supports your CU ATM initiatives by offering a wide variety of “No-Surcharge” options via key partnerships with KeyCorp, CU24 and others.

You do not have to be a Member Access Pacific client to participate in the NWCUA or many of our “No-Surcharge” network alliances and solutions. If you would like further information, please contact MAP at 866-598-0698.

In a first quarter, 2006 report, nine federal and law enforcement agencies combined to outline concerns that pre-paid debit cards could aid money-laundering efforts because the buyers are not traced and the cards can be used internationally. In the joint report, the agencies specifically cited stored value cards, especially those purchased anonymously, which provide significant money laundering potential. These cards can be used internationally, since major networks are accepted abroad.

The report also cited traditional money laundering channels, such as casinos, wire transfers and money orders—as it highlighted the dangers of gift cards, which in some cases carry PINs and can be used for ATM cash withdrawals—as well as payroll cards, which can pay terrorists or employees of fraudulent businesses, and cross-border remittances,  which enable anonymous funds transfers abroad.

Organizations can take these steps to curtail the threat:

• Pre-paid credit card distributors should check the identification of pre-paid card buyers, since these cards can be run down, recharged with cash and then transferred to new users (which makes it virtually impossible for law enforcement to track the fraudulent activity).
• Specific attention should be given to PIN-based cards because the value on these cards can be converted directly to cash.
• Money laundering using prepaid debit cards can be detected because the cards carry their own distinct institutional numbering system on magnetic stripes, and purchase-and-use patterns can suggest potential laundering.

The goal is to encourage new and continuing use of corporate cards through rewards and incentives—and to achieve success by practicing industry-proven best practices. Contact Sandy Anderson at MAP (866-598-0698 x7111) for more information on these small business best practices.

• Sales volume of Visa-branded cards was $25 billion dollars, up 17.5% from the same period in 2004;
• The peak volume day was Friday, December 23, when 179 million transactions were processed over VisaNet without interruption;
• Positive growth characterized both debit and credit cards, with debit growth outpacing credit by 2.5 times.

• Sales volume topped $1 trillion in 2005 for the first time;
• Merchant acceptance soared to over 6 million locations in 2005, an increase of 7.8% over 2004;
• Operating revenue rose to 2.6 billion in 2005, an increase of 10% over 2004;
• 2005 net income was more than $360 million.

MAP’s plastic affiliate, Alaska Option, obtained certification from MasterCard International. It is now authorized to emboss, encode and mail any MasterCard branded card from its secure personalization facilities.

MAP continues to expand credit union participation in its KeyCorp ATM network that provides 400 surcharge-free ATMs throughout Washington State. Recent changes regarding ATM networks have placed new pressures on surcharge-free ATM access,  one of the core values that credit unions have extended to their members through the years.  As your card processor, MAP is committed to providing your credit union with expansive, competitively priced ATM no-surcharge access via key partnerships with KeyCorp and others. For further information please contact David Pearson at 866-598-0698, ext. 7115.

Credit unions are still not deploying marketing at their ATMs as actively as industry analysts once thought they would. There are several reasons.

First, regulatory requirements and branch traffic pressures have forced credit unions to commit dollars to ATM upgrades for depository capability and Triple DES encryption. As these dollars were spent, little budget was left for other ATM enhancements like marketing.

Second, initial pilots of advertising on ATMs have yielded mixed results. One initial trouble area was member “wait time” at the ATM. In the beginning, this was a real issue as members waded through advertising to get to their real purpose—making a cash withdrawal or a deposit. Now, wait time issues have been resolved, but there is still the member perception that they are being subjected to advertising when they could be executing their transactions.

With Triple DES and depository upgrades behind them, many credit unions will likely take another look at ATM advertising since it is now much improved. One reason to consider doing so is another “time bomb” upgrade that credit unions must turn their attention to: IBM has terminated support for the OS/2 operating system that runs most ATMs, leaving organizations vulnerable when it comes to ATM software support. The ATM OS (operating systems) migration path that ATM manufacturers have selected is from OS/2 to Microsoft Windows—and the capabilities that the MS Windows operating system brings will make it very easy for credit unions to add graphics and other messaging that easily support ads and promotions. Everything has already been tested and verified in the MS Windows operating system environment—from check imaging to credit card campaigns—so credit unions don’t have to worry about the technology not working.

Credit union executives and managers will also be asked to squeeze more value out of their ATM investments. Adding marketing and promotional messages is one means of extending ATM value.

Since the days of the ATM marketing pilots three years ago, credit union marketing departments have learned several things. They now understand that members want to be communicating with their credit unions—not with some impersonal third party advertiser. Consequently, credit union marketing will be doing most of the messaging and ad campaigns over ATMs. There are also new services available to CU marketing like First Data’s remote connect service, which allows institutions to add graphics and ads as well as print coupons on receipts via a straightforward, browser-based application. The First Data program is less than 1 year old, so it is too early to qualify results—but early indications are that the application will save institutions time and money since they don’t have to install graphics on machines themselves. Ads can be rotated three times a day and switched out every 60 days, to cut down on the message repetition that members experience at the ATM. Marketing can be assigned on a per ATM basis, a capability that allows credit unions to differentiate their messaging and their offers to different geographical markets.

ZDNet, an online news service, reported on March 26 that a popular software package used by retailers to control debit-card transactions may inadvertently store sensitive customer information, including PIN codes.

According to ZDNet, Visa had issued a warning to companies that process card transactions for some of the nation’s largest retailers. Apparently, two versions of cash-register software made by Fujitsu Transaction Solutions are under scrutiny.

Among retail customers using the Fujitsu software are Best Buy, Staples and OfficeMax, but it is not known which companies use the software that Visa claims is flawed.

Visa’s warning was first reported by The Wall Street Journal on Friday, March 24. It has generated concern in both financial and retail industries, because the software was flagged at a time when thousands of debit-card holders across the country have reported unauthorized withdrawals from their accounts.

ZDNews indicated that Bank of America, Washington Mutual and Citibank are among the financial institutions that have replaced more than 200,000 debit cards in the past two months and have told customers that thieves obtained vital debit-card information as a result of a security breach at a large merchant.

According to law enforcement and banking officials, one commonality among fraud victims was that most had shopped at one of Fujitsu’s clients: OfficeMax. OfficeMax said it had found no evidence of intrusion, and Fujitsu also denied that its software had contributed to any security breaches.

Major credit-card companies have banned the storing of customer data and can fine merchants who do store such data—and merchants have worked to comply with these requirements. However, there is still a possibility that systems used by merchants can collect customer data, including PIN information, without the retailers’ knowledge.

To deal with this problem, card processors like Visa have vendor certification programs—and retailers have the ability to procure security audits of their systems. The recent security breach threat reemphasizes the fact that information security is everyone’s business—whether they are a card processor, a financial institution, a retailer or a computer hardware or software supplier.

A recent small payments survey revealed that 45 million consumers would use debit or credit cards for purchases under $5, up 23% from a year ago.