Beware electonic banking errors

Disputes with banks over electronic transactions have risen sharply in recent times at a time when consumers do not yet enjoy the same level of protection compared to other areas of banking.

The Australian Securities and Investments Corporation (ASIC) reports consumer complaints over electronic transactions against banks, building societies and credit unions increased almost 50 per cent to 106,719 in the year to March 2000.

ASIC reports that two-thirds of these complaints related to system malfunctions and most of these were resolved in favour of the consumer.

Complaints involving unauthorised ATM and EFTPOS transactions remained around the same level. However the majority of these were resolved in favour of the banks due to cardholders’ negligence with their PINs.

Consumers should be aware that the various banking codes of practice covering the payments system, credit, even electronic funds transfer, do not extend to Bpay and other telephone or Internet banking transactions. ASIC has recently concluded negotiations with industry and consumer representatives and an updated code of practice is expected to be released in early April.

Customers can guard against account errors. When making electronic payments, record transaction details including receipt number and the time you made the transaction.

This will help ensure any dispute will be resolved quickly. To prevent unauthorised transactions, protecting PINs and passwords.

Read our Tips and Tricks on transaction accounts and credit cards for more about security.