Despite the clear advantage of chip cards, including limited liability for the issuing financial institution should an in-store accepted card turn out to be fraudulent, Pulse reported that only 25 percent of debit cards were expected to be converted by the end of 2015.1 Though slow to gain full acceptance, that percentage is forecasted to rise to 73 percent by the end of 2016 and 96 percent by the end of 2017.
Strengthening Cardholder Relationships
For financial institutions, swapping magstripe debit cards for EMV has been a hefty and costly shift, averaging $2.17 per chip card for large banks and $2.90 per chip card for credit unions1, not to mention the price of updating ATM hardware and software, as well as consumer marketing and education efforts. Transitioning has also meant a shift in processing strategies to comply with increased regulations and requirements. Despite the associated costs, adopting EMV chip cards provide financial institutions an opportunity to strengthen cardholder relationships and acquire valuable customer insights.
Grow Your Bottom Line
Working with Vantiv, the first industry leader to be EMV-certified, financial institutions of any size and scope can gain instrumental insight from our fully integrated presence across the transaction chain. Vantiv has a hand at every step of the process in processing billions of debit transactions, gaining insight that gives our active clients understanding of how their cardholders are using their purchasing power. Armed with this knowledge, these intuitions can grow their debit processing and new non-interest revenue to help increase their bottom line.
Faced with the intricacies of navigating the credit and debit card processing payments landscape, institutions have to consider card production, issuing, processing, support and ongoing security. When making important decisions regarding EMV-enabled debit card processing, many institutions turn to their card processor for guidance.
Vantiv also brings added benefits to debit card security and management, benefits like putting card controls directly into the hands of cardholders. MobiMoney, a mobile app that offers cardholders a convenient way to manage their debit cards, enables cardholders to easily activate and deactivate their cards, receive instant alerts, and limit usage based on location, merchant preferences, transaction type and threshold amounts — all from their mobile devices. Innovative features like this are just one way Vantiv is helping financial institutions reduce fraudulent transactions while increasing cardholder trust, loyalty, and card usage.
The steps EMV has made have been significant in reducing card-present fraud; however, without comprehensive debit card processing, financial institutions may be missing the full benefit of cardholder engagement, robbing themselves of the potential revenue gains and desired market positioning. Perhaps the most important aspect of debit card processing is the ability that a processor has to make the most of an issued card — pushing financial institutions to revitalize and grow their debit portfolio, pushing their EMV debit card to the top of cardholders’ wallets.
1 Pulse Network – September 10, 2015
https://www.pulsenetwork.com/pulse/documents/index/serveDoc.html?doc=DI_Press_Release_2_EMV_and_Fraud_FINAL
Vantiv offers a comprehensive suite of traditional and innovative payment processing and technology solutions to financial institutions of all sizes, enabling them to address their payment processing needs through a single provider. It is the second largest merchant acquirer and the largest PIN debit acquirer based on number of transactions in the U.S. Vantiv builds strong relationships with its clients, helping them become more efficient, more secure and more successful.