Debit card glitch means thousands charged twice

Woman paying with card (generic) Debit card glitch means thousands charged twice Debit card glitch means thousands charged twice 035efe4058Image copyrightGetty Images
Image caption The issue affected many people who used debit cards to buy goods and services on 29 August

Thousands of people in the UK were charged twice for debit card payments.

The error occurred due to an issue with a particular card terminal run by Cardnet, a joint venture between Lloyds Bank and First Data.

Money came out of bank accounts twice but transactions only showed up once on many shop, pub and restaurant receipts.

Lloyds Banking Group said people had been refunded and just under 5% of Cardnet machine transactions were affected during part of 29 August.

Many people banking with different organisations were charged twice for spending money in shops, restaurants and businesses using Cardnet terminals as their way of taking payment.

The majority of affected transactions involved Visa debit cards.

Image copyrightSimon Alton
Image caption Simon Alton was charged twice for a meal at Côte Brasserie

Simon Alton, 39, discovered he had paid twice for a meal at Côte Brasserie, in Shrewsbury, Shropshire, last Wednesday.

“It’s a reminder to check your statement, it’s an unexpected thing to happen,” he said.

“I’m a bit lax, if it wasn’t for the friends I had been out with who messaged me the next day, I might not have noticed.”

Mr Alton, who works in PR, said he had spent about £60, adding: “The restaurant’s been very good. As far as we know, we’ll get the money back.”

Côte Brasserie has been approached for comment.

Other customers took to social media to express their concern about duplicate payments.

One woman, known as Lisa D, said she had visited the Oblix restaurant in The Shard, London, to celebrate her husband’s birthday when she was charged twice.

Image Copyright @shullupayaface@shullupayaface
Twitter post by @shullupayaface: @OblixRestaurant i came to celebrate my husbands birthday on Wednesday and was charged twice bith at the resturant and the bar!! How can a fine establishment do this!! I want this investigated please! Has this happened to anyone else? It was Wednesday 29/08/2018 #notimpressed Debit card glitch means thousands charged twice Debit card glitch means thousands charged twice 301ffbc4a1Image Copyright @shullupayaface@shullupayaface

Sara McCluskey went to Solita NQ in Manchester with friend Oriel Hardman when both were affected.

Skip Twitter post by @Macca_91

@SolitaNQ hi, me and and @orielbird went to the NQ restaurant on Wednesday and have just seen we have both been charged twice for our meal? We split our bill between two cards but have both had the amount taken out twice. Help?

— Sara McCluskey (@Macca_91) September 3, 2018

End of Twitter post by @Macca_91

Billy Hatch visited German Donner Kebab (GDK) in Sutton, Greater London, and had the same problem.

Skip Twitter post by @MiniHatch

@GermanDoner_UK Hi i recently purchased some food from your sutton store on the 29/8/18 at 8pm, the food cost me £6.49, however when I’ve checked my bank statement I’ve been charged the same transaction twice at different time, is there any way i could be refunded?

— Billy Hatch (@MiniHatch) September 3, 2018

End of Twitter post by @MiniHatch

Other businesses responded by saying it was a problem with the card processing data firm and not an issue with individual businesses or banks.

Brunning Host Pubs, which runs pubs in Devon, released a statement to customers on 1 September after being made aware of the problem.

Skip Twitter post by @BrunningFamily

** Card transactions **

Lloyds Cardnet process our card transactions. They have advised us that come customers may have been charged twice for transactions made on the 29th August 2018. They assure us that… https://t.co/omXTaxfcvt

— Brunning Host Pubs (@BrunningFamily) September 1, 2018

End of Twitter post by @BrunningFamily

The Nab’s Head, in Preston, Lancashire, said in its statement second duplicate payments would not be taken by them but refunded as soon as possible.

Skip Twitter post by @Nabs_Head

**IMPORTANT**

We have been informed of an issue with our credit/debit card payment processor FDMS where by customers may have been charged twice on either the 29th or 30th August, this will show up on your… https://t.co/88wn8Hy6ZU

— Nabs Head (@Nabs_Head) September 3, 2018

End of Twitter post by @Nabs_Head

Cardnet handles more than 1.2 billion transactions every year, according to its website.

It claims to make it “easy for merchants to accept card transactions online, in person or by phone”.


Analysis

Simon Gompertz, BBC Personal Finance Correspondent

We are all using cards more to make payments.

Last year cards topped cash for the first time ever, as contactless paying took off.

So it’s vital we can have confidence in the security and reliability of the technology.

It has taken Cardnet nearly a week to send out refunds for its double-charging mistake.

In that time some customers will have been perplexed or even panicky about what happened to their accounts.

If banks want us to embrace the future, they need to be much sharper at dealing with the glitches.


A Lloyds Banking Group spokesperson said: “A small number of transactions processed last Thursday by Cardnet were duplicated.

“Action has been taken to rectify this situation as quickly as possible and we apologise for any inconvenience caused.”

In July one of the UK’s money transferring services had to deal with a backlog of payments after a system failure.

Visa experienced a similar issue in June that left customers across Europe unable to make some purchases.

While in May, TSB customers continued to face issues with online banking.

Original Source