Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Heavies Ruin Holiday – Take Care with Credit Cards

21 December 2012

Heavies Ruin Holiday – Take Care with Credit Cards

Banking Ombudsman Deborah Battell is urging Kiwis to take care with their credit cards over the holiday season, particularly if they are heading overseas.

The warning comes on the back of a recent case the Banking Ombudsman Scheme considered where a man, on holiday in Eastern Europe, was ‘heavied’ into paying $1,600 by credit card, allegedly for hospitality at a local bar.

Ms Battell said that cases where New Zealanders were forced to make card transactions under threat of violence were complicated, but customers should know that banks may not be able to help them get their money back.

“In this case, even though the man had not enjoyed the hospitality, the essential dispute was between the man and the local bar.”

“Unfortunately, the fact that the payment was made under duress didn’t alter the situation. The customer had authorised the transaction and correctly entered his PIN and so the bank was required to pay. The customer was therefore obliged to repay the bank,” said Ms Battell.

The man had called the bank immediately to cancel the transaction, but his bank could not do so as it is not possible to stop a credit card transaction. While the bank attempted a chargeback (a procedure followed by credit card companies where a transaction is disputed) it did not succeed because the PIN had been used, and the bar owners had provided a receipt and other documentation in support of the transaction.

“In situations like these, while customers should alert their bank and request a chargeback, getting their money back is most likely to be a matter for the local police.”

Ms Battell said that the best way to prevent situations like this happening was to be aware of the risks and take the following precautions when travelling:

• Remember tourists are targets, so do your best to keep yourself, your cards and your PIN number safe.
• Inform your bank that you are going overseas and which countries you will be visiting – banks can sometimes pick up unusual activity on your card, but remember they are not legally obliged to monitor your cards for you.
• Report any incidents to the local police and your bank immediately.
• Consider taking more than one card with you and having lower limits on each card.
• If there is a transaction that you wish to dispute, ask your bank to attempt a chargeback.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news