TSB delays switch from Visa to Mastercard
Written by Hannah McGrath
TSB is to postpone its shift to Mastercard to process its card payments in order to focus on restoring its computer system back to strength following an IT collapse in April.
The High Street lender had announced plans to migrate to Mastercard from Visa Europe for its card operations by December this year, but the changeover has now been delayed until at least 2019.
The bank, a subsidiary of Sabadell Group, has been focussing efforts on correcting issues related to the botched migration to a new computer system, which left thousands of customers temporarily locked out of their current accounts for five days in April.
The technical problems also created problems in viewing payments and mortgages and some users were able to see others’ details.
TSB will join a string of retail and challenger banks making the switch to Mastercard for its payment operations, including Santander, CYBG, Monzo and Starling.
A spokesperson for TSB said they were pleased to be working with Mastercard. “The partnership presents lots of opportunities for TSB and our customers in 2019 and beyond”, they added.
The bank reported £176 million of extra costs and £108.4 million losses for the first half of 2018, with the disruption caused by the IT failure at least partly to blame.
FSTech has contacted Mastercard for comment.