All the banks in PNG, (Westpac Bank, Kina Bank, Bank South Pacific (BSP), recently ones Credit Bank PNG, TISA Bank, National Banking Corporation) are using Debit Visa Cards for their customers Personal Transaction Accounts and SME/Business Accounts as well. Also, the banks require that if a Customer has more than one accounts, he/she can have only one Debit Visa Card to do transactions while still maintaining the other accounts. Whenever a withdrawal is required from the other accounts than, they can move the money to the transaction account which is tied to the Debit Visa card. Transfers can be done via Internet Banking or Mobile Banking. This is part of their customer protection measures to centralize all withdrawals at ATMS, payment through Bank EFTPOS (Electronic Funds Transfer at Point of Sale) devices at shops and businesses through one account. One card, one customer rule and it’s easier to track and respond to customer queries and complaints when transactions are done through one cared.
BSP, TISA and others allow customers to use standard bank cards as well but it’s all same-one card, one customer. Kina Bank stopped all the standard cards and replace with Debit Visa Cards for all Personal Transaction Accounts. last year (2024).
While issuing of Debit Visa Card is now the normal standard for Banks, a lot of customers in in PNG needs basic education around using the Debit VISA so they safeguard their money from any would be thieves. Mainly, people who less are educated or not tech savvy, those doing business in the informal sector and those from rural areas or districts with cash crops such as copra, cocoa, vanilla and etc.
Also, people working at the lower strata of formal employment such as taxi drivers, security guards, cooks, etc.. So, the following section explains the safety measures average bank Papua New Guinean customer can take when using his or her Debit Visa Card.
Difference between Debit Visa Card and Standard Bank Card
Debit Visa Bank Card.
Debit Visa bank card is card that have the logo of Visa Card company on it. Visa Card is a international multinational card payment company from the United States. The company facilitates card payment from a bank card holder from one country to use the his/her country bank issued card to do transactions in another country. For example, if someone from PNG who is a BSP Bank Customer goes to Australia, New Zealand or any country in the world, he/she can use the BSP Debit Visa Card to access his/her funds at BSP Account back in PNG through any local banks, ATMS and EFTPOS in that country. VISA works with Banks around the world to enable that cross-country currency transactions.
Debit Visa Card can also be used to shop online from any online stores (shop websites) from anyone in the world. This means that the card be used anywhere overseas as well as pay for goods and services online. Transfer of money will be done through local banks using the VISA Card international payment systems.
Because, Visa Debit Visa card can be:
- Used in overseas while travelling
- Pay for goods and services online
- Use locally in PNG
Makes it standard banking card choice for the banks as well as for customers.
Standard Bank Card
The standard bank card is card that can only be used for transactions within Papua New Guinea. It does not have Visa Logo on it.
Debit Visa Card Issues for Customers in PNG.
Majority of customers will have no problems using Debit Visa Card. However, in PNG as mentioned in earlier there is certain customer segment that can exposed to possible money theft if the he/she is not careful. There are few main issues for customers who lack basic knowledge about how Debit Visa Card Works. Those who doesn’t travel overseas and doesn’t do online shopping. Those that use the card for their every banking needs only.
1: Tap and Go for Amounts Less than K50.00 at EFTPOS
Banks are allowing transactions that are less than K50.00 at EFTPOS checkouts in shops, hotels, bars, coffee shops and etc. Checkout staff can just tap on the EFTPOS Machine and transactions are complete. Although, K50.00 is not much, but anyone can take someone’s card and use it for pay for things several times. Example, kids using parents cards, caretakers abusing patients cards, someone using a drunk person’s card and etc.
2: Balance not shown on ATM Receipts after Withdrawal
When Debit Visa Card is used at a ATM operated by another Bank the balance is not indicated on the receipt from the ATM. For example, if Kina Debit Card is used at BSP ATM, receipt will not show the balance. Reason is that ATM Machines reads it as any International VISA Cards because the bank that issued the card is another bank. In this case Kina Bank.
So, the customer will not know any suspicious change in the balance quickly and report if necessary to bank.
3: Don’t Need a pin to Online Shopping
This is important point to note. The buying things online through the internet, the check out process for payment requires the following information:
- Full Name of the card holder
- Debit Visa Card Number
- Expiry Date
- CVV (Card Verification Value)- a 3- or 4-digit code
All of these are visible on the Card. Some cards won’t have names on it. This means, anyone who has access to the card pay for things online without the knowledge of the card holder. What the banks try to do is they will send transaction notification through email or Mobile phone that is registered during the opening the bank account. Some banks won’t . They will prefer the customer to check their transaction history (Bank statement) or balance through internet banking or mobile banking to monitor their transactions. For those customers who don’t regularly monitor their transaction either through Internet banking or phone banking, the risk is there.
4: Some Asian Shops Request Visa Card payments checkouts.
Some Asian shops are rejecting Debit Visa Card payments. Possible reason would be because, banks will debit the amount from the Customer’s Account but not remitted immediately to the Merchant’s (Shop’s Account) and takes time because these payments are cleared through the VISA Card system then normal local between banks transfer. For shops, the daily sales from Debit Visa Cards can amount to significant of money transaction being delayed. So from their operational point of view, they what to avoid that delay by the banks in remitting the amount to them.
Possible Theft prevention measures a customer can take.
- Open two accounts in the same bank if allowed. Otherwise, with another bank. And use one for transactions only. Keep a minimum balance to keep the account operational. For example, K500.00. Park rest of the money in the other account. Alternatively, for working people, hide the Salary Account Card and use the transactional account. Whenever, transaction is required than transfer the amount required to the transactional account and use it and replenish again as needed. This way you minimize the risk of money being by others than yourself.
- Sign up for Internet or Mobile Banking. All the banks offer the service. Very easy and convenient way to check balance, do transfers and download statements. Report immediately if there is any suspicious transactions.
- Visit the banks website and get their customer services phone numbers and email addresses and have them handy to contact them whenever needed.
VISA DEBIT Cards will become more standard so why enjoying the convenience it brings, also be vigilant. Always remember that Banks have thousands of customers. Your account is just one in a thousand others so don’t expect the banks to solve all your complaints or attend to your queries quickly and efficiently. Do the simple steps you can like the above mentioned to safeguard your money.
