Senior Reporter
kay-marie.fletcher@guardian.co.ott
An investigation has been launched into what the Bankers’ Association of Trinidad and Tobago (BATT) has labelled a processing issue which resulted in thousands of dollars, or more, being withdrawn from customers’ banking accounts over the weekend before being partially returned.
Among those raising the alarm were scores of PriceSmart customers, although other businesses reportedly suffered hits.
PriceSmart has since promised to reimburse its affected customers.
In a release yesterday, PriceSmart said, “This was due to a technical issue in processing, which has affected multiple banks and merchants outside PriceSmart’s control in Trinidad and Tobago. We understand that in an effort to correct the transactions, cardholders’ accounts may have a different amount than was initially charged due to foreign exchange rate fluctuation.”
It added, “The banks are working to rectify the transactions, and PriceSmart continues to collaborate with the banks to ensure our members’ concerns are addressed. We will ensure that any member who has a discrepancy on their account resulting in an overcharge will be reimbursed for the difference in charges.”
However, some customers were upset PriceSmart had the ability to take money from their accounts without their consent. Some even weighed taking legal action against PriceSmart.
Speaking to Guardian Media via phone yesterday, customer Savita Brdigemohan said she observed an unauthorised transaction of over $600 on her credit card statement yesterday. However, she said the last time she visited PriceSmart was three months ago.
Bridgemohan said, “When I contacted the bank they told me it wasn’t an error on their part and when I contacted PriceSmart, PriceSmart told me that they were having some technical difficulties right now and that’s how the monies were deducted from the account and they trying to rectify it. However, it was refunded and the refund is done in US, hence the difference in the payment amount.”
She added, “It wasn’t an error I made. They took out money from my account and put back less. Of course, I want back my money and they clearly saying that they cannot do anything about it so I cannot understand how they have access to people’s credit card account where they can take out and put in at their free will.”
Other customers took to social media to express their dissatisfaction with PriceSmart.
One First Citizens customer said, “PriceSmart, what kind of rubbish is this? You recharged my card on the 13th of this month when I was not even in PriceSmart that day for $1,725.57 and then refunded 5 dollars less. The real issue is how the hell you all charged my card without my pin or cv number. This is extremely worrying.”
Another customer said, “PriceSmart, your errors have resulted in my losing approximately $130 from my credit card account... However, I have lost more than that. I have lost all confidence in the financial propriety of your establishment.”
The customer added, “To make matters worse, the amounts refunded are lower than the sums withdrawn, and the explanation that the transactions are pegged to the US-TT exchange rate reveals a further breach. TT currency transactions made at your physical stores in which all payments are made in $TT have somehow been converted to US-denominated purchases without your customers’ knowledge and consent. That is unethical.”
Individual customers were not the only ones affected by the PriceSmart issue.
The Confederation of Regional Business Chambers yesterday confirmed 15 to 20 of its members were also impacted. In a release, the chamber said called on the retail outlet to make restitution and compensate affected persons. It added that the onus was also on the Consumer Affairs Division, the Central Bank and even the TTPS’ Fraud Squad to look into the matter.
However, speaking to Guardian Media via phone yesterday, Minister of Trade and Industry Paula Gopee-Scoon defended PriceSmart in the face of the numerous customer complaints.
Gopee-Scoon said, “I don’t think that its PriceSmart going out there and doing this... I have had discussions with PriceSmart International on the issue and I am aware that the Bankers’ Association has taken to respond.”
While details on what caused the issue remained unclear up to yesterday, the Bankers’ Association said it had ruled out the possibility of fraud.
BATT said, “The Bankers’ Association of Trinidad & Tobago is aware of the reports from customers regarding a recent reversal of transactions on their bank card accounts at select merchants. BATT would like to assure the public that this is not any type of fraudulent or cyber-crime activity against customers and their banking information remains secure. This reversal arose as a result of a processing issue which would have unfortunately impacted many of the banks.”
It added, “Our member banks are urgently working to have the matter resolved and legitimate queries are being investigated. Each member bank will address the matter with their impacted customers to have it remediated in the shortest possible time frame. BATT would like to apologise for any inconvenience caused by this issue. We remain committed to providing a safe and secure banking system for our customers.”