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Credit Union Times

APRIL 27, 2016 | VOL. 27 | NO. 14 | CUTIMES.COM

PAYMENTS

ATM EMV Deadline Looms

The next major step for merchants and card issuers in the move from magstripe to chip technology is looming: The liability shift deadline for ATMs and self-service fuel dispensers.

The liability shift deadline for ATM transactions made with MasterCard branded credit and debit cards is Oct. 1, 2016; Visa’s deadline is Oct. 1, 2017.

Experts said as credit unions continue to migrate their magstripe plastic to chip cards, they should not neglect the impending deadline for making ATMs EMV ready. They must also prepare to educate members on the new ATM technology and emphasize chip card benefits.

“Every financial institution or anyone that has an ATM should be looking to upgrade their ATMs to meet that upcoming liability shift,” Art Harper, director of card payment solutions at the St. Petersburg, Fla.-based payments CUSO PSCU, said.

One expert emphasized the ATM transition isn’t a mandate. It’s a liability shift, and issuers and merchants have the option not do it.

“If the ATM owner has gone through the cost of certifying it and it is a magstripe card that has been compromised, then the liability goes to the issuer of that card, the credit union or the bank,” Jamie Topolski, director of alternative payment strategies at the Brookfield, Wis.-based core processor Fiserv, Y15

Must Reads FOCUSREPORT:
SOCIAL MEDIA

Some credit unions have converted social media engagement into new memberships and accounts. However, marketers face compliance hurdles as they create social media campaigns. Learn more in this Focus Report. Y8

FOM and the ABA

Bankers have no business critiquing the NCUA’s FOM proposal. Y12

Women to

Watch SAFCU’s Glenn takes control of her credit union’s future. Y6

CUA Board Chairman Debbie Matz’s departure is nearing while Congress bickers over NCUA Board Member J. Mark McWatters’ nomination to the Export-Import Bank board. As a result, how the NCUA board it will operate in a post-Matz era is unknown.

Currently, the Ex-Im Bank is
operating under constraints, be-
cause it only has two board mem-
bers. The five-seat board cannot
approve transactions totaling
more than $10 million without a
quorum.

Should Congress move on McWatters’ nomination to the Ex-Im Bank board, it would leave the NCUA with a single Democrat running its board: Vice Chairman Rick Metsger.

The Politics Involved

Politics played a heavy hand
when Senate Banking Committee
Chairman Richard Shelby (R-Ala.)
refused to budge on moving nom-
inations out of his committee. He
has said he wants to see a nomi-
nation for the vice chairman of
supervision at the Federal Reserve
first, leaving Mc Watters’ nomina-
tion in limbo.
Senate Majority Leader Mitch
McConnell (R-Ky.) has been ap-
plying pressure on Shelby to take
up the nomination, but Shelby has
defied the majority leader.
Industry Ponders NCUA Board’s Fate

J. DANIEL YOUNG dyoung@cutimes.com

WASHINGTON
he Panama Papers en-
snared foreign heads
of state and financial
institutions, but they’re
also likely to have a ripple effect in
the U.S., with enforcement agen-
cies sharpening their focus on
anti-money laundering and Bank
Secrecy Act reviews.

That may cause some sleepless nights for credit union executives, who already are feeling the weight of AML and BSA compliance, experts said.

“Typically, credit unions have a low risk profile,” Robert Pargac, a director for Navigant’s Global Investigations and Compliance practice, said. Navigant is a Chica-go-based consulting firm.

However, that could make small, low profile credit unions even more attractive to financial criminals, Lawrence Reaves, president of the Kernersville, N.C.-based consulting firm Advanced Fraud Solutions, said.

“The bad guys are looking for
the weakest link,” he said. “They
start to go downstream and look
at the smaller institutions.”
Cindy Williams, vice president
of regulatory compliance for Pol-
icyWorks, a Des Moines, Iowa-
based compliance con-