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Products

PCI council releases PIN security requirements

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WAKEFIELD, Mass. (12/23/14)--The Payment Card Industry (PCI) Security Standards Council has released v2.0 of PIN Security Requirements.
 
The program contains a complete set of requirements for the secure management, processing and transmission of personal identification number (PIN) data at ATMs and attended and unattended point-of-sale (POS) terminals.
 
PCI PIN Security Requirements v2.0 aims to enhance usability and understanding by stating the requirements in a more granular manner, the council said.
 
The update includes incorporation of testing procedures into the requirements, which resulted in two versions of the document--PCI PIN Security Requirements v2.0 and PCI PIN Security Requirements and Test Procedures v2.0. The council said that including testing procedures in a separate version will facilitate a smoother evaluation and deeper understanding of the requirements.
 
The council also has published a summary of significant changes document that provides a high-level look at the modifications to the requirements.
 
Examples of common vulnerabilities for PIN theft addressed by the requirements include:
  • PINs that are not protected by use of a secure PIN block;
  • Failure to use approved cryptographic devices for PIN processing;
  • Cryptographic keys that are not random and not unique to each point of interaction device, and keys that never change;
  • Few, if any, documented PIN-protection procedures; and
  • Audit trails or logs that are not maintained.
"Criminals are actively targeting the point of sale and it's up to us as a community to stop them in their tracks," said Stephen W. Orfei, general manager of PCI Security Standards Council. "The requirements enhance the protection of devices that accept PINs with the end goal of securing cardholder data at the POS."

PIN Security Requirements is included in the current PIN Security Transaction security requirements. Program requirements and a list of approved devices are available for download.

More CUs add Apple Pay to services

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CUPERTINO, Calif. (12/22/14)--At least eight credit unions have signed up for Apple Pay, the new mobile wallet from Apple.
 
With Apple Pay--rather than using a traditional plastic card in stores--consumers can pay with their iPhone 6 or iPhone 6 Plus. They can also make purchases online within apps with Apple Pay using the newest iPhones and iPads.

"We're committed to giving our members access to the latest mobile payment technology to make banking simple," said David Mickelson, vice president of retail delivery operation at UW CU, Madison, Wis., one of the credit unions that recently enlisted in the service. "Apple Pay will save members time, making their cards even more convenient to use at stores."
 
To get started with Apple Pay, members add their card information to an iPhone 6, iPhone 6 Plus or Apple Watch. When checking out, they hold the device near participating merchants' card readers with a finger on Touch ID, which completes the transaction. The process is secure because the actual credit and debit card numbers aren't stored on the device or on Apple servers.
 
Other credit unions signing up for Apple Pay, according to Apple's website, include:
  • America First CU, Riverdale, Utah, with $6.2 billion in assets;
  • Black Hills FCU, Rapid City, S.D., with $995 million in assets;
  • Dupaco Community CU, Dubuque, Iowa, with $1.1 billion in assets:
  • Idaho Central CU, Pocatello, Idaho, with $1.6 billion in assets;
  • L&N FCU, Louisville, Ky., with $862 million in assets;
  • National Institutes of Health FCU,  Rockville, Md., with $559 million in assets;
  • Navy FCU, Vienna, Va., with $58 million in assets; and
  • UW CU, with $1.8 billion in assets.

CUAnswers rolls out payday loan alternative

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GRAND RAPIDS, Mich. (12/19/14)--CU*Answers, a Grand Rapids, Mich.-based credit union service organization, has launched a National Credit Union Administration-endorsed small-dollar lending program for federal credit unions designed to protect members from predatory payday lenders.
 
Payday Alternative Loans (PALs), part of CU*Answers' "Just Turn it On" initiative, gives credit unions a chance to transition borrowers to more traditional products offered by credit unions and break the cycle of reliance on payday loans.
 
With its "Just Turn It On" initiative, CU*Answers helps credit unions manage the launch of new products.
 
"CU*Answers will configure the product, provide training, policy examples and ensure the credit union is prepared to leverage results and help members, " said Mary Dwyer, CU*Answers account executive.
 
PALs are not only an economical choice compared with traditional payday loans; they can strengthen the member's credit history. When a member can be removed from the negative cycle of payday lending, they can successfully move toward more traditional forms of lending.

Diebold introduces two new cash recycling series

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NORTH CANTON, Ohio (12/18/14)--Diebold Inc., a CUNA Strategic Services alliance provider, has introduced two new series of cash-recycling ATMs.

Diebold's 3500 and 3700 series are designed to improve cash management efficiencies, mitigate risks with security management technology and enable institutions to economically expand ATM networks to reach more consumers.

"Diebold continues to broaden its next-generation, modular ATM platform with technology that answers a wide variety of financial institutions' needs, including improving operational productivity and enhancing security at the self-service channel," said Frank A. Natoli Jr., Diebold executive vice president/chief innovation officer. "The 3500 and 3700 series will extend and leverage the advantages of our new platform, while adding world-class, multifunction recycling capabilities."

Both ATM series feature ActivRecycle modules, which automatically detect counterfeit notes, sort cash and reuse deposited cash to improve efficiency. The cash-recycling capabilities reduce monitoring and refilling needs, providing tellers with more opportunities to interact with members.

Diebold's 3500 and 3700 series feature the ActivGuard intelligent alarm system, which consolidates security functions into a single embedded system to help credit unions better manage risk.

The ATMs also support Diebold's ActivEdge, the industry's first anti-skimming card reader that prevents all known forms of ATM skimming.

Additional features such as biometric fingerprint readers, security cameras, encryption technology and monitoring services offer comprehensive protection.

Fiserv survey: Mobile bill pay up 70%

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BROOKFIELD, Wis. (12/17/14)--Mobile bill payment has increased among U.S. consumers by 70% since 2013, with 27 million U.S. online households now paying at least one bill from their phone, according to the seventh annual Billing Household Survey from Fiserv Inc.
 
At the same time, consumers value having a number of options for bill payment, as the survey showed an average consumer uses three different payment methods each month (Finextra Dec. 15).
 
Roughly 65 million U.S. online households now have a smartphone, and 40% of smartphone owners pay at least one bill from their phone, according to Fiserv. Smartphone bill payers paid an average of two bills per month from their phones. Among millennials (Gen Y), 62% pay a bill using their smartphone, and Gen Y smartphone bill payers paid an average of three bills per month from their phone.
 
 
The most popular bills paid by phone include mobile (15 million), cable (14 million) and electric (8 million).
 
More consumers are also making payments by tablet in 2014. Some 19 million U.S. online households paid a bill using their tablet device each month, an increase from 13 million in 2013. The number of tablet owners interested in receiving and paying bills via their device increased to 23 million, up from 18 million in 2013.
 
Many consumers switch payment methods from month to month--and value that flexibility, according to the survey. About 43% of consumers said having multiple billing and payment options improves satisfaction with their biller, regardless of the bill type or the size of biller.
 
Consumers often have to make emergency payments via biller website (46%), financial institution website (46%), phone (41%) or walk-in payment (29%). Again, consumers value the ability to make last-minute emergency payments, with 57% saying they are more satisfied with the biller when emergency options are available.

Real-time data warehouse available from CUAnswers

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GRAND RAPIDS, Mich. (12/16/14)--CU*Answers, a Grand Rapids, Mich.-based credit union service organization, is beta-testing a new data warehouse designed for the mobile credit union executive who wants to track credit union performance on a daily basis.

My CU Today collects key credit union data from CU*BASE, the CUSO's core data processing platform, and presents that data to users in ways that can be acted on quickly.
 
CU*Answers describes CU Today Alerts as similar to a morning newspaper. Email alerts of the credit union's performance are delivered early each morning. Alerts can be set up on custom parameters and sent to anyone.
 
My CU Today Trends allows users to log into the web application and view long-term trends of the data points. These graphs show the movement of data and performance over time, granting the user the ability to track successes and areas that need improvement.
 
"It is our first automated external data warehouse presented for client use," said Randy Karnes, CU*Answers CEO. "It focuses on the credit union leader as the distributor and coordinator of their data, and allows every stakeholder internally and externally to be in the know."
 
Currently, My CU Today is tracking 60 credit union balance, member and transaction data points from CU*BASE with many more earmarked for tracking in 2015, including cash, delinquency and in-process information.
 
CU*Answers is signing up beta-test clients to begin populating the credit union data warehouses and will launch to beta-testing credit unions in early 2015.

LSCU's LEVERAGE relaunches HRx

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BIRMINGHAM, Ala., and TALLAHASSEE, Fla. (12/15/14)--LEVERAGE , an affiliate of the League of Southeastern Credit Unions, is relaunching HRx, a full-service human resources firm, in Florida and Alabama.
 
Services offered by HRx include employee placement, employee screening, professional employer organization and employee surveys. HRx also provides executive recruiting.
 
"Credit unions will tell you that executive recruiting is difficult," said LEVERAGE President/CEO Patrick La Pine. "To be able to utilize a solution like HRx takes the pressure off of finding that right employee. Plus, HRx can fill many human resources needs to help credit unions offer services they may not be able to offer on their own."