The document discusses reducing operating costs for credit union savings stamp services. It notes that traditional paper savings stamps cost approximately €5,000 per year to print plus €3,000 in staff time to manage. This amounts to €80,000 over 10 years for a service that provides no return. It introduces the Visual Savings Card system as an alternative that is more secure, provides accountability and auditing, and can be implemented for less than the annual cost of paper stamps. The card addresses issues like loss, theft, fraud, and money laundering that are problems with traditional savings stamps. It provides transaction records for auditing and prevents copying like is possible with physical stamps.

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. 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. 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