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How Internet PIN Debit Can Reduce Exposure

In a day and age when cyber security is of utmost concern, how can expanding your payment acceptance capabilities protect both you and your borrowers?

You can hardly turn on the news or read an article without hearing or reading about the latest case of fraud or identity theft. Just as consumers get comfortable and start to think that the threat has subsided (out of sight, out of mind), late breaking news of a breach floods the airwaves. According to ZDNet, more than one billion personal records were illegally accessed in 2014, up more than 54% from 2013. The fact is, identity theft could be devastating to your borrowers from the loss of assets to the time and energy spent rectifying the situation; it’s in their best interest to avoid exposure at all costs.

However, online payments and purchases have become a part of the fabric of modern commerce. Consumers prefer the convenience of paying their bills online who has time to write and mail checks via snail mail? and look to their credit unions and financial service providers to offer the platforms for them to do so. Your borrowers want the convenience of online payment options, and they expect that you will provide a secure avenue for them to conduct their business.

With that in mind, consider Internet PIN debit, a payment solution that can be added to your existing online payment portal. It allows your borrowers to make their payments using their debit card and requiring a PIN. OfferingPIN authentication increases the security of the transaction on the back end while users see their card issuer’s familiar logo on-screen before they hit the submit button, affording them peace of mind that security is of the essence.

How It Works

Your borrowers enter their PIN by selecting the digits on screen as opposed to keying it in on their keyboards preventing the PIN from being captured during transmission and processing. This added security occurs because only the PIN coordinates are captured as opposed to the actual digitsand then encrypted prior to being processed. As another level of security, after each digit is clicked, the PIN pad scrambles, never leaving numbers in the same location.

The High Cost Of A Security Breach

Internet PIN debit not only protects your borrowers, but it also protects you. According to the Ponemon Institute, the average cost of a data breach in 2014 was $3.5 million. A data breach could be very costly to your credit union. The repercussions of a damaged reputation also could cost you your borrowers’ trust, and potentially their business. A security breach is not 100% avoidable. You certainly hope it doesn’t happen to your credit union, but it could. Internet PIN debit is simply an added level of protection and security that you can add to your repertoire of services.

Internet PIN debit allows your credit union to reduce your borrowers’ exposure to fraud and manage the associated costs that accompany a security breach.

Learn more about how payment processing software can impact your bottom linefor worse or for better. Download our free ebook today.

This article is sponsored by a recognized solutions provider in the credit union industry. Callahan & Associates does not endorse vendors or the solutions they offer, and the views and opinions offered here might not reflect those of Callahan. If you are interested in contributing an article on CreditUnions.com, please contact the Callahan team at ads@creditunions.com or 1-800-446-7453.
September 14, 2015

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