News Column

KCB, Co-Op Clients Face Money Hitch As Old ATM Cards Are Disabled

August 5, 2014

Lola Okulo

SEVERAL clients of Kenya Commercial Bank and Cooperative bank were unable to access their money over the weekend following lapse of the deadline to switch to use of new version of ATM debit and credit cards.

KCB and Coop had given their clients up to 31 July to pick the new pin and chip cards known as EMV which are said to be more secure than the old version bank cards that used a magnetic strip to store crucial account details.

"As earlier communicated the deadline was 31st July, 2014, however the bank will not accept any liability from 1st August, 2014 if the card is skimmed on the old magnetic strip," said KCB yesterday.

The bank which has a customer base of three million issued half a million new cards in July alone. Early last month, it said over one million customers had picked their new cards which it charged Sh400.

"I went to withdraw some money on Friday evening and my card was rejected by the ATM machine which instructed me to contact my branch, forcing me to wait until Saturday to withdraw from the counter," said Peninah Muigai a cooperative bank customer.

Coop was charging its clients Sh500 for the EMV cards.

Following the inconveniences to the customers who had the old cards, KCB softened its stance and said it will extend the deadline to September 15 after which it will disable the old cards again.

However, the regional bank which is the biggest by assets, said it shall not bear any liability for any loss incurred through fraud from continued use of the old cards.

"As earlier noted the bank will not accept liability for a skimmed card on the old magnetic strip card. We are taking cognizant of the school holidays in August and schools opening in the first and second week of September so that customers are not inconvenienced," said the bank yesterday.

Cooperative bank had not responded to our queries by the time of going to press.

The Kenya Bankers Association said liability will shift to banks for money lost through use of old ATM cards as from May 31.

Other banks like Barclays Bank and Jamii Bora are still allowing use of the old cards as issuance is still ongoing. Barclays has given its customers up to the end of this month after which it will disable the old cards while Jamii Bora said it shall start issuing the new cards in September.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: AllAfrica

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters