Card security is certainly top of mind for cardholders everywhere, and for good reason. There are multiple and daily threats to card security: skimming, RFID capture, PIN theft, shimmer devices — the list goes on. Financial institutions and technology companies work continually to stay one step ahead of criminals.

The good news is, instant card issuance offers financial institutions a simple way to reinforce card security and boost customer engagement and satisfaction.

Eliminates Mail Non-Receipt Card Fraud

Before instant issue, account holders’ only option was to visit a branch or call customer service to report a lost or stolen card, then wait.

Wait some more.

And wait a little longer.

Before checking their mail days later to retrieve the replacement card placed in their post box by the letter carrier or delivery person.

This activity leaves the door wide open for mail non-receipt fraud.

This fraud happens when a criminal gets a card after it’s been issued by the financial institution but before the cardholder retrieves it from the mailbox. Savvy thieves often target multiple occupancy residences with communal mail centers to intercept cards and personal details from post boxes.

Handing a card to the cardholder eliminates the risk of a card being stolen during the mail cycle.

No waiting. No wondering.

Deters Friendly Fraud

Instant issue also reduces the risk of “friendly fraud.” Friendly fraud occurs when a family member or acquaintance steals the card after it’s been delivered but before the cardholder can claim it. This type of hard-to-identify, hard-to-prosecute fraud is exceptionally easy for the thief. The cardholder likely trusts the perpetrator and would typically not even suspect him or her. Meanwhile, the thief knows a lot of personal information about the cardholder, making it easy to use the card fraudulently.

If the perpetrator is found, victims are often hesitant to prosecute due to their personal relationship.

With instant issuance, cardholders walk into the branch where they will receive a personalized, fully functioning card placed directly into their hands.

An Active, Alert Cardholder Means a More Secure Card

Instantly issued cards can lead to a 15 percent increase in activation, an average of five additional transactions on the card, and a 15 percent increase in account transactional volume. Active debit card users are one of the best defenses against fraud because many debit card users check their transaction history on a daily basis. Thus, giving a card to a cardholder at account opening helps create more active users who are more aware of their daily transaction activity and can quickly identify discrepancies in it.

In addition, providing a user-selected PIN at account opening prevents a third party from activating a card using known account information or a stolen PIN mailer.

Instant card issuance with Card@Once® is so economical, even the smallest financial institutions can distribute cards in the branch. Taking advantage of the security benefits, increased engagement opportunities and revenue generating potential offered by instant card issuance should be an easy decision for financial institutions.

Want more information on instant issuance? Click here to download “13 Critical Questions to Ask Instant Issuance Providers in Your RFP”.


Card@Once is a registered trademark of CPI Card Group, Inc. U.S. Patent No. 8,429,075.
EMV is a registered trademark or trademark of EMVCo LLC in the United States and other countries. All rights reserved.