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.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news