Nearly a third of card fraud victims are having to wait to get their money back, according to new Which? research, despite obligations on banks to refund customers immediately.
The survey of more than 4,000 Which? members revealed 29% of those card fraud victims are having to wait weeks or even months to get their cash back.
The research found Barclays and Barclaycard customers were least likely to be reimbursed immediately with nearly four in 10 (39%) customers experiencing delays. Even the best in our snapshot survey, First Direct, delayed refunds to 17% of customers.
Overall, 98% of all victims surveyed eventually got their money back, indicating that too many card providers are being unfairly suspicious of their customers when it comes to card fraud.
Chip and Pin concerns
One in five respondents to the survey said that they were refused immediate repayment for this reason.
However, Which? has seen evidence that fraud can be committed when a card is used to pay for items without the cardholder divulging the correct Pin, by using technology that hoodwinks the card reader into believing a legitimate code has been entered. See the video for more.
Find out more about how to protect yourself from card fraud.
The best and worst card providers for delays
The table shows how long leading credit and debit card providers took to reimburse victims of card fraud who reported losses over the past five years.
|Time taken to refund fraud victims|
|Financial provider||Sample size||Reimbursed immediately||Total delays (up to six months)||Delays of up to a month||Delays of between two to six months|
|Bank of Scotland||57||72%||24%a||19%a||5%a|
|Marks and Spencer Bank||99||70%||28%a||26%a||2%a|
|The Co-operative Bank||185||69%||29%||20%||9%a|
- At Which? we report on a minimum overall provider sample size of 30 to ensure our surveys are reliable and representative of the population. Marked cells mean that although the overall provider sample size is at least 30, the number of people surveyed that fall into that specific response is below 30.
- No longer available to new customers
- Overall sample size of 3,264 does not include brands falling into the ‘other’ category.
Delays can cause financial problems
Commenting on the research findings, Which? executive director Richard Lloyd said: ‘Our research shows that banks are too often failing to refund customers immediately when they have been victims of fraud. With £340 million lost to card fraud a year, there are large sums at stake that can leave people seriously out of pocket and unable to pay essential bills.
‘Banks are required by law to give victims of fraud an immediate refund, unless they have evidence that person is acting fraudulently or with gross negligence. They should do everything they can to help people who find themselves in this situation through no fault of their own, as part of the wider big change that’s urgently needed to make banks work for customers not bankers.’
- Card fraud – how to spot and avoid payment card fraud
- Credit cards – a round-up of the best credit cards on the market
- Bank accounts – the best current account providers revealed