Debit Card humiliation !

Debit cards have become a popular way of accessing a bank customer's own money and they are welcomed by all merchants because they ensure the immediate transfer of funds from the account of the buyer into the account of the seller.   Unlike accepting a cheque, they are " no risk " and allow the flow of commerce over periods when the banks are closed.

This past weekend, many holders of NAB Visa debit cards were left both embarrassed and humiliated at shops and petrol stations when their cards were refused, despite having adequate funds available in their accounts.  It seems that a computer glitch at the bank duplicated the monetary value of any transaction made, resulting in some cards being refused on the grounds of " insufficient funds " !

The bank has apologised and offered temporary overdraft facilities to cover shortfalls, and promised that any overdrawn fees charged will be promptly refunded, but that does nothing to pacify the customers who found themselves stranded at the counter of a petrol outlet, trying to explain to the cashier that their card had adequate funds, but was being refused by the bank - and they were unable to pay for the petrol now sitting in the tank of their car at the bowser.

It also raises the question of regular payments automatically falling due on the days of this malfunction - and which attract a non payment fee or a late payment fine if not paid on time.   Such fines have a nasty habit of scoring a black mark on people's credit ratings - and having that rescinded is a long and delicate process.

Obviously, the bank is also humiliated by this SNAFU which has affected many of it's customers, but merely a shrug of the shoulders and an offer to waive any resulting bank charges is not sufficient to restore confidence.   Customer credit ratings have been put in question.   How will the customer be received the next time he or she needs to fill the car's tank at the petrol station where this mishap occurred - and what public humiliation was played out before other people in negotiating that debt outcome ?

At the very least, the bank needs to write and explain the reason for the late payment to any periodic payment authority - and if they decline to waive their late payment fee - refund that amount to their customer.  Should this result in a black mark on the customer's credit rating it should be the bank's responsibility to  see that a correction is made.

Computer systems that handle our money are complex and provide an admirable record of reliability, but they are also essential to maintaining customer integrity in the market place.  The banks make great profits from handling and disbursing other people's money and with that comes the responsibility of making good when their system fails.