+- Pakistan Real Estate Times - Pakistan Property News (https://www.pakrealestatetimes.com)
+-- Forum: Pakistan Real Estate / Property News (/forumdisplay.php?fid=1)
+--- Forum: Latest Pakistan Property & Economic News (/forumdisplay.php?fid=4)
+--- Thread: Lost credit cards Customer-merchandiser nexus deceiving banks (/showthread.php?tid=2014)
Lost credit cards Customer-merchandiser nexus deceiving banks - LRE - 12-13-2008 12:05 AM
Lost credit cards
Customer-merchandiser nexus deceiving banks
By Nauman Tasleem
LAHORE: The 'wise guys' are making money from banks through a loophole in the credit card systems, the banking sources told Daily Times on Thursday.
The banks reward merchandisers with Rs 3,000 to Rs 3,500 if they catch any stolen or lost credit card while on the other hand the banks also charge Rs 200 to Rs 500 from its customers for issuing duplicate card.
There are around 1.5 to 1.6 million credit card users in the country while as many as 10 banks are issuing them.
However, in a number of cases banks have to suffer financially due to customer-merchandiser nexus. The modus operandi of the duo (customer and merchandiser) is very simple, as the customer only has to lodge a complaint with the bank that he has lost his credit card and needs a duplicate one. The bank charges fee of duplicate credit card and issues new card to the customer. The duplicate credit card fee varies from banks to bank while the reward money is also different.
The merchandisers are advised by the banks to keep any credit card that is stolen or lost, said a banker Abdul Hayee adding that the stolen/lost cards can easily be differentiated. "When a stolen card is swapped in machine then a message appears on the screen, which tells that the card is blocked," he said. Hayee said that the merchandiser tells the bank help line about the blocked card and the bank official collects the card from the merchandiser. "The banks encourage the merchandisers for catching a block and reward him through different amounts," the banker said.
It is observed that some merchandisers and credit card users make money from the loophole. The customer with the help of merchandiser, shares the reward money given by the bank, said another banker. "It is a new way of making money and it's almost impossible to prove that the merchandise has done this in partnership with the customer," he added. "Such activities can be discouraged by reducing the reward amount or increasing duplicate credit cards charges," he suggested. A merchandiser at Model Town Link Road in Lahore said that he with help of close friends had earned Rs 20,000. "I have done nothing wrong and everything was according to rules," he said with a smile on his face.
http://www.dailytimes.com.pk/default.asp?page=2008%5C12%5C12%5Cstory_12-12-2008_pg5_8