Banks to Deactivate Cards Trapped in Other Banks’ ATMs

Money deposit banks in the country have resolved to commence the deactivation of all Automated Teller Machine (ATM) cards trapped in other banks’ ATM from January 15 this year, Nigeria CommunicationsWeek has learnt.

The new practice is aimed at securing such cards against fraudsters. Banks argue that exposing customers ATM cards to third party may compromise security of such cards.

Before now the standard practice is to return any ATM card of any bank customer trapped in other banks’ ATM.

This is done through the bank branch at which such card is trapped sending it to the bank that issued such card for onward transfer to the bank branch of the card owner.

This often takes as much as  five working days.

But in the case of card trapped in the ATM of the bank that issued the card, all that is required is for the branch to verify that the customer is the rightful owner and the card is returned to the customer immediately.

Nigeria CommunicationsWeek gathered that from January 15, 2014 when most bank will begin the implementation of this policy, any bank customer whose ATM card is trapped in another bank ATM will no longer use such card for transaction as such card will be deactivated and reissued with a new card.

Some banks have started notifying their customers through short message service,  but are silent on who bears the cost of the new card.

It would be recalled that transaction over ATM has witnessed series transformation aimed at ensuring that the process is safe and secured.

Among them include; the Central Bank of Nigeria’s  directive to banks to migrate from the traditional magnetic stripe cards to EMV standard chip and Pin cards.

More so, the apex banks urged banks to maintain 24 hours help desk for ATM related transaction issues where customers that notice unauthorized transactions on their account could call at any time to stop such action.

More so, Money deposit banks in the country may have  issued some 14.72million active Automated Teller Machine cards to their customers for transactions as at the end of July last year.

Nigeria CommunicationsWeek investigations recently revealed that as at the end of October last year there are about 12,100 active ATM performing transactions across the country at bank branches, hotels and airports.