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Savings Stamps White Paper

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Savings Stamps White Paper

  1. 1. White Paper By Reduce the Operating Cost Eoin O’ Sullivan of Savings Stamps Service Addressing costs is a vital issue for Credit Unions as well as tackling inherent security & accountability issues. The impact of the recent economic The average operating cost of savings recession, as well as new regulations, have stamps is €5,000 per annum . A put new found pressure on Credit Unions conservative estimate on staff time adds a and their members. A key issue for growth and sustainability is the reduction of further €3,000. That adds up to €80,000 operating costs. over a period of 10 years for a service that gives nothing in return. In order to reduce operating costs, Credit Unions must first identify services where In 2008, Enterprise IT Ltd launched the Visual cost cutting can be implemented. Until Savings Card™, a revolutionary approach to recently, there has been no viable paper based saving stamps. This system can alternative to paper based savings stamps. be rolled out for a one off cost that’s less the annual cost of paper stamps. The average cost for a savings stamps service is €5,000 in printing stamps and stamp Each member saves on their own card. Every booklets per annum. If this service is time they save, the amount that physically managed by one member of staff, a appears on the card is updated. The system conservative estimate in reconciling stamps uses a proprietary software program and and money would be €3,000 per year. Over a special ink free printer, which means the 10 year period, that amounts to €80,000 solution is also green. alone for a savings stamps service. Along with cutting the costs of savings Now that the costs have been identified, stamps, the Visual Savings Card™ addresses what is the solution? fundamental savings stamps issues, such as, fraud, money laundering, loss and theft, accountability and auditing. © 2011 Enterprise IT Ltd 1
  2. 2. Reducing the Operating Costs of Savings Stamps Service Protect against Loss Theft Real Stamps And fraud Or Not? One of the major concerns with savings stamps, is loss and theft. A full booklet of The Visual Savings Card™ is a PIN savings stamps can amount to €200. If a protected service, which means your member looses their booklet, they have no members money is always safe against loss recourse to the Credit Union, their money is and theft. The inherent security features simply gone. mean the card cannot be copied. The Visual Savings Card™ addresses this problem in a number of innovative ways. Member details are stored in a magnetic Stamps incorporate little, if any, security stripe on the card and correlate to details features. The advent of modern scanners and transactions held in an encrypted and printers, makes it easily accessible to database. If a member looses their card, a subversive individuals to fraudulently copy new card can be issued. This means the and reproduce stamps with no way of members money is always safe. identifying them from the original. The generation of the new card, Even in cases where codes are printed on automatically makes the old one void. When stamps, there is no way for staff to check the card is inserted into the printer, the them months down the line, or when members details, along with a photo if presented with stamps with the same code, required, appear on screen, verifying who which stamp is the original. the person is. The card is also PIN protected as an extra security measure. The magnetic stripe, thermochromic rewrite layer and encrypted database make the Visual Savings Card™ impossible to copy. © 2011 Enterprise IT Ltd 2
  3. 3. Reducing the Operating Costs of Savings Stamps Service Money Laundering And Accountability It may come to as a surprise to many Credit Unions, but savings stamps is a service that The Visual Savings Card™ combats has no way of detecting and identifying money laundering activity and provides money laundering activity. full accountability for all stamps issued and redeemed, including a year end audit Savings Stamps fall under SI 223/2004 - Credit Union Act 1997(Exemption from trail. Additional Services Requirement) Regulation 2004. A Credit Union must account in it’s books for all such transactions. With current paper based savings stamps, the day end routine of reconciling stamps With no accountability for stamps issued or and money can be a nightmare. With the redeemed, the savings stamps service is Visual Savings Card™ system, one click of a open to money laundering. Stamps can be mouse, provides a complete report on all purchased and redeemed on the same day, transactions, regardless of volume. with no method of tracking their movement or who purchased them. Year ending auditing is also a snap. Reports can be generated for any time period, giving Since each member has their own Visual a full break down of what members makeup Savings Card™, their name, details and the total savings stamps account balance. member number are linked to each transaction. A limit can be placed on how The Visual Savings Card™ is currently much a member can add and withdraw daily. operating in Credit Unions all over Ireland. It is available in three different versions, a self service kiosk, counter based solution and a portable unit that can be taken to schools © 2011 Enterprise IT Ltd 3

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