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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news