Novartis Federal Credit Union’s Conversion to Contactless Debit Cards Drives Higher Transactions
Per Account
Promotions Helped Drive Usage, Transaction Volume
St. Petersburg, FL, July 27, 2009 – After Novartis Federal Credit Union of East Hanover, N.J., converted all of its debit accounts to contactless debit cards from PSCU Financial Services, its total transaction volume is up by 9.4% and transactions per active account are up by an impressive 19%. Members love the cards and have found widespread availability of contactless terminals in the metropolitan New York City area, according to Ann South, Novartis’ CEO. The credit union has more than 1,600 active debit accounts, along with $120 million in assets and 7,000 members.
“Our members are extremely pleased with the speed and convenience offered by the contactless cards and they like having the latest card technology,” said South. “We conducted several seasonal promotions, including several Wii giveaways, that helped build awareness and boost transaction volumes, and we are extremely pleased with the growth we have achieved.”
The credit union has a monthly volume of more than 32,000 transactions, with an average of 19.6 transactions per active account. This reflects an increase in sales of 8.6% since the conversion to contactless cards in May of 2008.
PSCU Financial Services is the first CUSO to launch contactless cards for credit and debit platforms. Both Visa payWave and MasterCard® Paypass cards are available. “Contactless cards are a great way for credit unions to differentiate their card offering and appeal to younger members and tech-savvy members of all ages who are interested in using the latest payment technology,” said David J. Serlo, President, PSCU Financial Services.
With the new contactless card, data is stored on a microchip and securely transmitted using radio frequency identification (RFID). The transaction can take place in seconds by waving the card within a few inches of the contactless reader. Both members and merchants benefit from the speed of contactless technology: an average contactless transaction takes 15 seconds, compared to 25 seconds for traditional magnetic stripe cards. Contactless cards are processed as signature transactions, but no signatures or receipts are required for transactions under $25. Contactless cards use highly secure encryption techniques and dynamic card verification to protect each cardholder’s financial information.
About Novartis Federal Credit Union
Novartis Federal Credit Union of East Hanover, N.J., has $120 million in assets and 7,000 members. Please visit www.novartisfcu.org for more information.
About PSCU Financial Services
Based in St. Petersburg, Florida, PSCU Financial Services is the nation's largest credit union service organization (CUSO) and serves more than 1,300 financial institutions
nationwide. As a non-profit cooperative, the company is owned by more than 600 member credit unions representing over 13 million accounts and 880,000 online bill payment subscribers. Its Contact Centers handle more than 16 million inquiries a year.
PSCU Financial Services offers 24/7 member support through four Contact Centers: its Eastern operations center in St. Petersburg, Fla.; a Western operations center based in Phoenix, Ariz.; and two call centers in Detroit, Mich. These Contact Centers perform member servicing and new member acquisition, cross-selling and automated lending solutions as well as support for debit/credit/prepaid cardholders and online bill payment subscribers.
Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, prepaid, bill payment, electronic banking and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As a leader in the credit union movement, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services. For more information, visit PSCU Financial Services’ website at www.pscufs.com.
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