Breakout Ideas That Build Successful Debit Programs

Ron Silvia, Director, Debit Services,
PSCU Financial Services

Both signature and PIN debit transactions continue to grow, but not at the expense of either program. Silvia urged credit unions to focus on maximizing revenue and not try to determine which platform will be the most popular with members.

“Debit card payments are growing at the expense of cash and checks.  While some consumers favor one platform over the other, most still like to have a choice,” he said.

Credit unions need to focus on areas they can control, such as costs, he reported. “Credit unions cannot control interchange rates but they can control costs. One of the best ways to reduce expenses is to reduce the number of networks involved on the backend and to use surcharge free networks,” he said. “One credit union reported saving $80,000 by shifting from one network to another and significant savings can be gained by eliminating unnecessary networks and surcharges.”

Acquiring DDA accounts and conducting target marketing are both important to a profitable program, he said. “Checking accounts remain a dominant force in the member relationship. Credit unions should focus on opening checking accounts with new members and offering debit cards automatically,” he said.

Many credit union members also have bank accounts and do not demonstrate loyalty to either institution. “It’s important to build loyalty through rewards programs and promotions. We can help credit unions design campaigns to build usage for active accountholders and stimulate activation for members who do not have debit cards.”

The cooperative is building a web-based library of free statement inserts, posters, web banners and other promotional materials, as well as educational materials and best practices research. It is also posting a calendar that displays current and future debit promotions.