Question: I use my credit card quite often, both in local shops and when I shop online. Although cards are promoted as a ‘safe’ way to make a payment, I am quite concerned to read in the press of fraudsters who manage to replicate card details and then sue such cards to make illicit payments and even cash withdrawals. What are my rights as a consumer?
As a cardholder, you have rights but also responsibilities. A cardholder is obliged to take all reasonable steps to keep his card safe and the means (such as a personal identification number or other code) which enable it to be used. A cardholder is also obliged to inform his bank as soon as he/she notices that the card is lost, stolen or of any unauthorised transaction on the card account. Unless the cardholder is not found to have been ‘grossly negligent’ in contravention of aspects of the framework contract (Terms and Conditions binding on the card account) or fraudulently, any losses sustained by the cardholder as a result of theft or loss of the card up to the time of notification to the bank may not exceed €150.
Banks in Malta have been introducing ‘chip and pin’ or EMV compliant cards as part of a European drive for all cards to be ‘SEPA compliant’. Indeed, the SEPA Cards Framework (for both debit and credit) introduces a new standard which allows the cardholder to pay and withdraw cash throughout the SEPA zone. To enable this, all cards and terminals will use a standard technical and operational interface, known as the EMV standard.
All SEPA compliant credit and debit cards will be required to have an embedded chip (to improve security and comply with EMV standards). With a SEPA compliant card, consumers can make payments and cash withdrawals anywhere in the SEPA zone with the same ease as in their home countries. Retailers and service providers will need to ensure their terminals are suitable for EMV.
Consumers should be aware of the terms and conditions applicable to their card and be aware of changes therein from time to time and which must be notified by the card issuer prior to their application. Cardholders should always keep their PIN secret and inform themselves about the use of chip and PIN cards at retailers.
