In response to the December data breach, many banks and credit unions were faced with the reality of reissuing debit and credit cards to the millions of affected U.S. consumers. When incidents like this occur, financial institutions bear the expense and burden of reissuing cards, which is not only costly, but also detrimental to the institutions' relationships with its customers if not done quickly.
Instance issuance, however, proved to be a viable solution to emergency card replacement and provided a number of benefits to cardholders and financial institutions alike. During the weeks following the breach, EFT Source nearly doubled the average number of cards issued with Card@Once. This method enabled banks and credit unions to experience cost savings due to lower production costs and the elimination of postage expenses. Additionally, consumers were able to use their cards almost immediately. By comparison, a card issued by traditional mail can take as many as 10 days for a customer to use it. With instance issuance, that wait time is ultimately removed, thus creating a highly satisfactory experience for account holders.
"Last year, there were nearly 500 data breaches that impacted millions of consumers, and we'll likely continue to see breaches throughout 2014," said
The company does caution that instant issuance should not be used for mass issuance of payments cards, which ideally should run through a service bureau environment. EFT Source is the only provider of both solutions to ensure a financial institution's card issuance program is flawless, accurate and fast.
Dinker added, "This breach has also brought new attention to EMV adoption in
Keywords for this news article include: EFT Source, Information Technology, Investment and Finance, Information and Data Security.
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