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Tuesday 23 October 2018

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Cardnet glitch results in double charges for thousands

Written by Hannah McGrath
05/09/2018

A glitch in terminals run by Cardnet, a joint venture by Lloyds Bank and First Data, resulted in thousands of shoppers being charged twice for debit card payments.

The operating error in Cardnet terminals occurred on 29 August, leading to duplicate transactions coming out of customer bank accounts but transactions showing up only once on shop, pub and restaurant receipts.

Just under five per cent of Cardnet machine transactions are understood to have been impacted, with Lloyds Banking Group saying all customers who had been affected had been refunded. The majority of transactions involved Visa Debit cards.

A number of card users have contacted the businesses where they purchased goods and services to complain about the double charging. Many of these merchants have replied via social media to explain that it is due to the card processing data firm and not an issue for banks or businesses affected by the error.

A statement posted to the Lloyds Cardnet website confirmed that the settlement file for transactions on 29 August by standalone terminal merchants had been duplicated, while the filed for transactions the following day 30 August was not submitted, leading to merchants receiving incorrect settlement amounts.

“In some cases, this will have been an overpayment of expected settled funds, in others an underpayment,” the statement read.

It went on to explain that cardholders paying merchants who use Cardnet “may also have been debited twice for transactions made on Wednesday [29 August].”

“We anticipate that refunds to cardholders charged twice will be completed by Tuesday 4th September,” the statement read.

Cardnet handles 1.2 billion transactions across 75,000 terminals every year, according to its website.



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