A failed payment transaction is easy to dismiss as a service issue. Michigan State University Federal Credit Union ($8.5B, East Lansing, MI) treats it differently. It uses the moment to shape the member experience and turn payments into a point of leverage for loyalty.
In late 2024, the credit union introduced a service that automatically updates card details with major platforms like Amazon, Netflix, Venmo, and more. Members can take advantage when they open a new card or need to update an expiring or compromised card.
“People don’t need a loan every day,” says Benjamin Maxim, chief technology officer at MSUFCU. “They don’t need new deposit accounts every day, but what they’re paying with is daily brand engagement.”
The credit union’s innovation CUSO, The Reseda Group, joined forces with a fintech to offer the service, dubbed “Card Updater.” That fintech, Strivve, works with banks and credit unions to manage the relationships and connectivity with digital service providers, often using AI or low-tech robotic process automation.
According to Maxim, few things erode cardholder loyalty faster than a payment that doesn’t work. This service is essential in heading that off.
“Making sure our card stays in the stored payment areas was our main focus,” he says. “Interchange revenue is a focus of ours. We’re going to cut debit card interchange in half when we hit $10 billion in assets. The more transactions we can have on the credit card side, the stronger.”
MSUFCU has linked Card Updater with both its credit and debit portfolios and has built the service into its mobile banking and online platforms. As of year-end 2025, 891 unique cardholders used the service nearly 1,300 times, according to Maxim.
Beyond Interchange
Although Card Updater will help drive interchange revenue for the cooperative, Maxim says the service is more broadly about improving the member experience.
CU QUICK FACTS
MICHIGAN STATE UNIVERSITY FCU
HQ: East Lansing, MI
ASSETS: $8.5B
MEMBERS: 399,480
BRANCHES: 37
NET WORTH: 8.4%
ROA: 0.28%
“We’re trying to add things to the digital experience and facilitate that embedded payment experience everyone’s moving toward,” the CTO says. “Think about all the places you store your card — your Starbucks wallet, Venmo, Uber, Airbnb. When the card breaks, all those payment methods break. Is it MSUFCU’s fault you can no longer book your car or do X, Y, and Z? We want to make sure we’re not to blame, but we’re also resolving whatever you can’t do in the moment. This helps make sure all those embedded payments are working.”
Card Updater is a relatively new feature for MSUFCU, but Maxim says it has already provided a strong ROI and leadership is confident the service has prevented attrition to other plastic providers like Capital One. And, says Maxim, plenty of members have been vocal about their positive experiences with it.
“The loyalty we’ve built is probably worth its weight in gold,” he says. “It helps retain members, and if you’re new to the credit union, it helps you adopt the credit union as one that you trust and use versus needing to do a lot of work to update stored payments. If we can make it easier, you’re more likely to use this card that you chose for a reason.”
Lessons Learned
Card Updater is situational, Maxim says, and credit unions need to build it into their workflows so members have it when they need it rather than seeking it out as an extra service.
“They need it in a certain moment and you need to deliver it in that certain moment,” he says. “If you were to run ROI calculations, you need to look at how many people you issue new cards to and how many members or new cards you issue every month because of fraud or new memberships or whatever reason. That’s going to be your value. Then compare that for an ROI but also consider the lift and the loyalty.”
Loyalty isn’t accidental. MSUFCU’s Card Updater shows how removing friction at the right moment builds the kind of trust that keeps members from drifting to other providers. Gallup research shows emotionally engaged members are 5.4x more likely to stay and 5.6x more likely to trust their credit union as a financial advisor. The Member Engagement & Financial Wellbeing Consortium helps credit unions build that trust intentionally, across every touchpoint. Learn more.