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Cardnet Technical Glitch Double Charged Consumers

Ross Kelly

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visa cards

Thousands of consumers found they had been double charged due to a card payment technical glitch. 

A debit card glitch that charged consumers twice for payments has left thousands of consumers angry, with some taking to Twitter to call for compensation.

A payment processor run by Cardnet, a joint-venture between Lloyds Bank and First Data, has been identified as the source of the issue. Lloyds Banking Group said that fewer than 5% of Cardnet transactions were affected by the glitch on the 29th August and that all those affected have been fully refunded.

Despite its statement on the issue, Lloyds has advised customers to check their statements and contact the bank if any abnormalities are discovered.

Seeing Double

Thousands of people noticed that money had been removed from their bank accounts twice, despite transaction records highlighting only one payment. The majority of these errors occurred when people were paying for services or products at retailers, pubs and restaurants. The majority of the affected transactions, Lloyds said, involved Visa debit cards.

In a statement, Cardnet said: “In some cases, this will have been an overpayment of expected settled funds, in others an underpayment.

“In addition, and importantly, cardholders (customers) of Cardnet’s impacted merchants may also have been debited twice for transactions made on Wednesday (29th August).”

The firm added: “Cardnet sincerely apologises for the issue and the inconvenience caused, we continue to work closely with all parties to resolve this issue swiftly.”

Cardnet said that all transactions should have been refunded by the 4th September. 

Recurring Issues

This latest technical glitch is one in a long list. TSB, in particular, has come under intense scrutiny for failing customers in 2018, with chief executive Paul Pester resigning this week.

Marks & Spencers, Gatwick Airport and NHS glitches all highlight recurring failures that often leave consumers out of pocket or at risk of exposure.

Lev Lesokhin, EVP of Strategy and Analytics at software intelligence firm CAST, said that issues such as this are commonly caused by poor organisational planning or complex IT frameworks.

“Glitches such as the one that left consumers scrambling for reimbursements on double-charged purchases are commonly caused by poor interfaces or APIs between laters of complex IT systems,” he said. “Designing software to run these functions within a single organisation is complicated enough, but building trustworthy systems is an even higher bar.”

Lesokhin suggested that the financial services industry is “saddled with old, complex applications that are difficult to modernise without risk of service disruption”, adding: “Considering the glitch occurred in a system touched by multiple organisations, from Cardnet to Lloyds Bank to First Data, it’s likely that a change was made in the system without considering the architectural ramifications of that change”

Ross Kelly

Staff Writer

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