CO-OP Is Planning to Start Card Processing in 2010
Recent reports suggest that sometime this year CO-OP Financial Services will begin offering credit card processing to its participating credit unions. Such a launch will propel the company into a marketplace already fairly crowded with services such as TNB Card Services, PEMCO, PSCU Financial Services, TSYS and The Members Group.
Jennifer Kerry, vice president for card services for CO-OP has said that CUSO was preparing to move toward offering credit card processing as a result of requests from participating credit unions. Kerry was hired by CO-OP early last year to work with the organization to prepare the service for launch. Jim Blouin also recently joined the team as regional sales manager.
Kerry feels that card processors overall have done a respectable job of clarifying what responsibilities credit unions will have under the Credit CARD Act of 2009. The two executives both were quick to point out that while the CARD Act is necessary and useful; the problems that have plagued some banks have rarely been a problem in credit unions. Still, the changes have provided an opportunity for the credit unions to go to their customers and really connect and clarify the way things work and explore opportunities for growth.
In the past decade the majority of credit unions took a conservative stance toward their credit card programs. Credit lines were kept low and rewards or incentives programs were few and far between. The new rules and the changing times mean that credit unions need to deploy new tools and expand their offerings appropriately. Caution is still a key, but it is more important than ever to meet the needs of customers to keep them loyal and happy.
Another point made by Blouin is that credit unions need to look to the changing economy as a warning and an incentive to more regularly evaluate members and be sure that their credit lines are appropriate for where they are in their lives. Salaries go up, jobs are lost, people move and they may need to make changes to the credit available as befits each individual’s situation. It is worth the cost of reviewing credit histories and files to be sure that consumers have access to increased credit if appropriate, and to reduce risk when situations have become less stable.
