BISHOPSTOWN CREDIT Union in Cork will become the first credit union in the State to offer a debit card to members from the start of next month.
The 24,000 members of the credit union, one of the largest in the country, will be able to use Mastercard debit cards from September 1st to withdraw cash from their accounts via ATMs and to pay for transactions at 26,000 locations around the world.
Bishopstown Credit Union has reached an agreement with Canadian company, DCR Strategies, which owns the licence to a loyalty points system known as Trucash that rewards members every time they use the card.
The credit union, through the Toronto-based company, will offer points to members which they can redeem for cash.
Ray Kenny, chief executive of the credit union, said: “Our members will be the first in Europe to be offered this unique method of accessing their cash while earning valuable loyalty points.”
DCR Strategies has launched its debit card points system for credit union members in Canada.
Members of Bishopstown Credit Union will be able to manage their accounts online to monitor transactions. To protect their accounts, they can also receive a text message every time the card is used.
Cash is debited from accounts as soon as transactions are completed. The credit union will not charge members for the service.
Brian Dennehy, manager of the credit union’s branch in Wilton Shopping Centre in Bishopstown, said the credit union was the first in the State to offer a debit card of its kind to members.
The move by credit unions to offer debit cards is part of a wider move to take cheques out of the Irish financial system. “A deadline to eliminate cheques from Irish society is vital and we believe that cheques should be obsolete by 2016,” said Pat McLoughlin, chief executive of the Irish Payments Services Organisation recently.
Mr Dennehy said the credit union was also the first in the State to provide mortgages to members. The credit union provided more than 24 mortgages last year, according to its 2007 annual report. It is approved to distribute mortgages in association with IIB Homeloans.
“We have carried out numerous surveys with our members and a debit card was one of the most requested items,” said Mr Dennehy. “Members will have no need to go near a bank – we will be able to offer the full service of a financial institution.” He said the credit union had been investigating a debit card for several years.
The credit union joined forces with several other credit unions last year to launch an ATM card in association with Bank of Ireland.
Bishopstown Credit Union had €135 million in savings and €54.3 million in loans at the end of 2007, according to its annual report. The credit union has a staff of about 30 in three branches. It had gross income of €7.9 million and total assets of €148 million last year.
More than two million people are members of 420 credit unions in the State, with savings of €12.3 billion at the end of last year.
