Regina Leader Post
Friday 13 September 1996

Article by Bruce Johnstone
L-P Financial Editor

Picture by Patrick Pettit
Leader Post

Credit Unions Change Cards

About 300,000 canadian credit union members will have access to upgraded credit card products and services next year, thanks to a Regina-based company.

CU Electronic Transaction Services (CUETS) is hooking up with a Florida based software designer to replace the existing transaction system for all credit union-issued MasterCards in Canada.

"The new system will provide state-of-the-art credit card processing and functionality," said Bill Johnson, research and development manager for CUETS.

CUETS, which is owned by credit union centrals in Alberta and Saskatchewan, has contracted PaySys International of Orlando to help implement the new system by September 1997.

Johnson, who heads the 10- to 15-person project team that's implementing the new system, said the existing credit card system dates back nearly 10 years.

"We basically created our credit card system in 1987 for Capital City Savings and Credit Union in Edmonton," Johnson said. "It was just a base credit card processing system."

Nevertheless, demand for the system grew rapidly within the credit union system. Over the years, the basic system was modified and expanded to meet the the increased demand.

"We realized last year that we were getting to the end of the life-cycle of the credit card system. If we wanted to offer to credit unions a leading-edge credit (card) product, we'd either have to undertake a significant rewrite of our system or get a new one."

So late last month, CUETS signed a "major contract" with PaySys to replace the existing system with a new system.

The exact amount of the contract is a carefully guarded secret. "It's a major investment," said CUETS spokesman Bob lane. "It's multi-millions of dollars."

Lane said the new system will enable credit unions to offer new products, such as student and corporate cards, as well as prepare the credit card system for the year 200 and the advent of 'smart cards'.

"It gives the credit unions the tools they need to better serve their members," he said.

Lane added the new credit card system will also enable CUETS to do its job better. "We manage $1 billion worth of transactions a year. That's 25 million transactions. It's a big operation."

And CUETS is getting bigger. Since June 1995, the company located in the Credit Union Central building, has nearly doubled in size to 180 employees.

Last year, CUETS acquired a credit card production facility and relocated it to Regina from Calgary, along with 17 new jobs.

"We make credit cards here," Lane said.

It's also taken over the handling of all electronic transactions for Canadian credit unions, which used to be done in Toronto.

Lane said the acquisition of the credit card manufacturing facility and electronic transaction business gave CUETS the "critical mass" to invest in the new credit card system.

"We've got the business. What we really need now is make sure we have the technology to continue to deliver the service."