ONTARIO, Calif. - Co-Op Network plans to distribute up to $2.3 million in Triple DES ATM compliance incentives to member credit unions.
The one-time distribution, which was recently approved by the Co-Op Network board of directors, will help member credit unions meet the financial industry mandate that all ATMs use Triple DES (Data Encryption Standard) encryption systems by April 29, 2005.
Under CO-OP Network's Triple DES Compliance Incentive Program, member credit unions will receive a distribution for each ATM that is certified to be Triple DES compliant by April 29, 2005. The incentive, which applies to ATMs that are attached to an intercept processor or driven directly by Co-Op Network, requires that member credit unions submit proof of Triple DES certification to Co-Op Network prior to the April 29 deadline.
"While the industry mandated Triple DES compliance deadline has been looming for some time, it's now right around the corner," said Gene Polito, Co-Op Network president and chief operating officer. "As a credit union-owned processor and ATM network, we have a strong interest in keeping our credit union constituency aware of new developments and compliant with industry requirements.
"Our incentive program rewards credit unions that have successfully dealt with this ATM security mandate and received certified compliance. It also demonstrates our continued commitment to supporting our membership through these times of regulatory change."
With more than 1,725 credit union members, more than 19,000 surcharge-free ATMs, 80 million monthly transactions and 19 million cardholders, Co-Op Network is the largest credit union EFT network in the United States. Co-Op Network members enjoy access to 800,000 ATMs worldwide through links to NYCE, Star, Cirrus, Pulse and Plus. Co-Op Network also offers national shared branch services via its subsidiary, Service Centers Corporation, based in Southfield, Mich.
