— if the customers not at fault in Visa card scam, says BoG governor

BANK of Guyana Governor, Dr. Gobind Ganga, said once Republic Bank is found to be at fault in the Visa-one debit card scam, it will have to reimburse affected customers.
“They will have to refund the customers. If the customer is not at fault, they have to reimburse the customer; this has been the normal practice of all the banks in Guyana,” Dr Ganga told the Guyana Chronicle.

Last Tuesday, several customers reported that monies mysteriously disappeared from their accounts and when they reported the matter, bank officials say the deductions were made for online payments to Netflix accounts or online shopping.

Following the public outcry, Republic Bank issued a statement confirming that some customers were affected by “fraudulent activity” via their international Visa-One ATM cards.
The bank also noted that it is putting in place, additional security measures to protect customers.

Republic Bank owns over 35.4 per cent of the banking systems assets and 36.8 per cent of deposits, making it one of the biggest banks in Guyana. It is poised to command an even bigger share following an agreement last year to buy over the assets of Scotia Bank’s (Guyana) operations.

Many Republic Bank customers have reported missing amounts less than $100,000; however, collectively, the total amount loss reports say could add up to millions of dollars.

WANT REFUND
“I realised a large sum of money was missing from my account,” noted one customer who was recently affected. The customer requested anonymity.

“I was made aware that my card was used online for some 10 different transactions and also a POS Visa Debit somewhere in Amsterdam. All these transactions amounted to over $140,000. This is very upsetting. I hope that all of my money is refunded to me in a timely matter and then I will close my account,” the annoyed customer said.

Republic Bank (Guyana) and several other banks in Guyana have a partnership with Visa Inc., a US company, to offer the International Visa debit card service.

The service opened the door for customers to access their account and use their card anywhere in the world where Visa card is accepted, including online. In 2009, Republic Bank became the first bank in Guyana to offer the service.

Several banks have since started offering the service. However, while the service has to be requested at some banks, at Republic Bank, the service is automatically offered on customers’ Automated Teller Machine (ATM) cards.

WARNING
Most of the banks’ website warn customers about the possibility of fraudulent activity on their card and speaks to preventative steps that can be taken to avoid being a victim of fraud.

However, outside of advising customers to report fraud as soon as it is discovered, the bank says little on their website about the process once the fraud has occurred. Dr Ganga said banks are aware that the service may carry some amount of liability.

“When [Republic Bank], or any [other bank], join up with Visa they [the banks] have to know what risk they are taking. You are being paid for a service to customers and part of that service is that the bank would make sure that that service does not have fraud. From time to time things will happen and the bank would have to correct itself. And at the same time, the bank is liable to the customer,” he said.

Dr Ganga further pointed to the Visa Inc.’s Zero Liability Policy.
To boost trust in their service, Visa Inc. promotes it’s “Zero Liability Policy” listed on its website. The policy promises that customers “won’t be held responsible for unauthorised charges made with [their] account or account information”. The company noted that customers are protected if their Visa credit or debit card is “lost, stolen or fraudulently used, online or offline”.

“If the unauthorised transaction involves your debit card or account, Visa’s Zero Liability Policy requires issuers to replace any funds taken from your account as a result of an unauthorised debit transaction within five business days of notification,” www.visa.com informs.

However, the Republic Visa OneCard Cardholder Agreement, which all customers sign when issued an ATM card, does not mention a Zero Liability Policy; or speaks anything about Republic Banks liability in the case of fraud.

Though it does not speak to fraud, the agreement references “disputed transactions”, which customers agree to notify the bank not later than 30 days after the transaction date. The agreement also says that the bank remains compensated by customers for “any and all”, claims arising in a dispute between a cardholder and merchant.

“Any and all disputes between a cardholder and a merchant in respect to any debit card transaction shall be resolved by and between the cardholder and the merchant, in the case of such disputes. The bank shall remain fully indemnified by the cardholder in respect of any and all claims arising therefrom whether by the merchant or any third party,” reads point 14 in the 22-point agreement that customers sign.