Instant card issuance offers a range of benefits for financial institutions, yet many banks and credit unions fail to prioritize this valuable service. Nationally, consumers average 34.6 debit transactions per month and 45% of all debit transactions are now contactless. Understanding the real advantages and separating fact from fiction can help your financial institution make a smart, strategic decision about implementing instant card issuance.
In this blog, we’ll debunk the top myths about instant card issuance and provide clear, actionable information to help you determine whether instant issuance is right for your organization and your customers.
Myth #1: Instant issuance costs too much
Instant card issuance can be more cost-effective than traditional central issuance. Instant issuance eliminates fulfillment and handling expenses typically necessitated by central issuance, such as postage and shipping fees.
Instant Issuance gives consumers a new card so they can promptly update their information and avoid service interruptions immediately.
Myth #2: Other initiatives are more important than instant issuance
74% of people say it’s important to receive a card instantly. The proportion increases within younger age groups, as 86% of Millennials and 85% of Generation Z respondents reported similarly.1
Instant issuance is a top priority for your customers and members. Even with tight budgets, it’s important to focus on initiatives like instant issuance that boost customer experience, engagement, and loyalty.
Myth #3: Instant issuance does not affect activation or usage
Delaying your customers’ receipt of their card delays when your institution can begin earning interchange and non-interest income.
According to PaymentsJournal, “when FIs eliminate the lag time between issuance and the customer’s receipt and activation of their card, the customer is more likely to use the card sooner and more often. Consumers certainly appreciate this service, and it could influence a customer’s decision to bank with the FI in the first place.”
Need more proof? People with an instantly issued card perform five more purchasing transactions a month. Additionally, 10 more transactions are made in the first 30 days of issuance.2
Myth #4: Instant issue doesn’t provide a competitive advantage
50% of people have never received an instantly issued card. 3
Here is a clear example of how your bank or credit union can rise above your competition by offering a differentiating service. Why make your customers or members wait 10 days for a debit or credit card when they could wait 10 minutes?
Myth #5: Low new account balances negate the effectiveness of instant issuance
New accounts are usually opened with small amounts, and it can take time for them to start showing activity. But your customers or members may be more inclined to deposit a larger sum in an account if they know they will have immediate access to it.
By providing customers with their card instantly, financial institutions encourage active spending and engagement, which may lead to higher account balances and greater customer satisfaction. This seamless experience enhances customer loyalty and maximizes revenue potential.
Myth #6: Mobile wallets will replace credit cards
90% of people rate the importance of having a physical debit or credit card as “critical” or “important”. 4
Mobile wallets are certainly on the rise, but they are not ubiquitous. People still need physical cards in a variety of situations. In fact, the Federal Reserve’s 2024 Diary of Consumer Payment Choice found that debit cards remain the most common payment method for payments of $25 or less.
Myth #7: Consumers aren’t using debit cards consistently anymore
56% of people use their debit card for at least one major recurring bill (utilities, streaming, insurance, etc.)
Waiting days for a replacement card can cause missed payments and service disruptions. Instant card replacement lets customers update their payment information right away, ensuring uninterrupted account access and meeting modern expectations for speed and convenience.
Give people what they want and set your financial institution apart by embracing innovation. Consumers often demand immediate, seamless access to their accounts and funds from the moment they open an account. With instant issuance, you not only meet these expectations but also deliver a superior experience that helps to keep them engaged and loyal.
Discover how Vericast’s Card Solutions can help you implement instant card issuance and make a lasting impression from day one. Contact Vericast today to learn more and start transforming your card program.
1. Vericast/Dynata, Consumer Card Survey, July 2025, n=1,000
2. Javelin Advisory Services, 2025 Instant Issuance Provider Scorecard, January 2025.
3. Ibid.
4. Vericast/Dynata Card Survey, July 2025, n=1,000
