Navy/Marine cash-next generation ATMs-at-Sea

CHIPS, Jan-March, 2005 by Cathy Partusch

Naval Supply Systems Command (NAVSUP), Navy Family Support, in partnership with the Financial Management Service (FMS), a bureau of the Department of the Treasury, announces the roll out of the Navy/Marine Cash[TM] financial system on 160 Navy ships through FY 2008.

Beginning in April 2001, as an evolution of NAVSUP's ATMs-at-Sea program, the Navy/Marine Cash initiative began on the USS Rentz (FFG 46), followed later that fall on the USS Bonhomme Richard (LHD 6). Navy/Marine Cash was a highly successful pilot program deployed on eight U.S. Navy ships from 2001 to 2003. The new financial cash management system allows afloat Sailors and Marines to conduct personal banking and purchasing electronically while deployed.

The system consists of an electronic purse on a commercial debit card, which uses both stored-value chip and magnetic strip technology. Navy/Marine Cash reduces the need for cash on board ship. Personnel can use the cards in the Ship's Store, Post Office, vending machines and for Morale, Welfare and Recreation (MWR).

Using a commercial PIN-protected debit card, Navy/Marine Cash provides 24/7 access to pay and allowances on and off the ship. Afloat personnel are able to receive electronic pay, access home bank and credit union accounts, transfer and withdraw funds, and make purchases, both on ship and ashore via satellite capability. A summary of security features includes:

[check] Navy/Marine Cash magnetic strip and e-purse are protected by an encrypted PIN.

[check] When reported lost or stolen, cards are placed on a "hot list" throughout the financial network within 24 hours and are electronically blocked at the server level.

[check] The maximum dollar amount that can be placed on the chip is $1,000.

[check] The maximum amount that can be transferred from your home to your Navy/Marine Cash account each day is $400.

[check] Entering a PIN incorrectly three times blocks the card, only the Disbursing Office can unblock.

[check] Cardholders can check balances online.

[check] Customer Service Center with hotline numbers for cardholders, Disbursing Office, Ship's Store, etc.

On board ship, cashless ATMs are used to verify card funds, transfer funds to and from the Navy/Marine Cash card chip and magnetic strip and authenticate PINs. Purchases are made using point of sale devices and vending machine card readers that access the card's chip.

Once ashore, funds can be accessed by the magnetic strip to withdraw funds from over 900,000 automatic teller machines (ATMs) worldwide to make purchases from more than 32 million merchants.

In 2004, 31 additional ships, have had the Navy/Marine Cash system installed. To date, a total of 40 ships have success-fully implemented the new cashless sys-tem. More than 28,652 active Navy/Marine Cash cards are currently issued with $105,578,471 million processed since the program's inception with over 11 million transactions passing through the system in the form of transfers, vending and store purchases and ATM withdrawals.

Navy/Marine Cash is one of the key initiatives of NAVSUP's Afloat Supply Department of the Future. The system provides the convenience and ease of living cash-free to Navy, Marine and other assigned personnel aboard ship. It also frees shipboard disbursing and retail Offices from labor-intensive payment and reporting processes.

Additional program stakeholders include the Marine Corps, Defense Financial Accounting Service (DFAS), and JP Morgan Chase, a financial agent, appointed by the Department of the Treasury for Navy/Marine Cash.

This is a rewarding and challenging private/public venture which provides our afloat supply operation with a robust financial cash management system," said Barbara C. Straw, director of NAVSUP's Disbursing Division.

"The system delivers greater efficiencies, promotes flexibility and interoperability between both DoD and other government agencies, and most importantly, improves the quality of life of our Sailors and Marines," said Straw.