BAD BUSINESS PRACTICE OR STANDARD PROCEDURE?

Tinkrbl44 · ‎08-23-2010

I don't recall the last time I had to replace a credit card with a faulty chip, so perhaps I'm the last to know ....

For the past week one of my credit cards wouldn't scan. The scanner makes a weird noise and the reader says Chip Malfunction.

If I try 3 times, the scanner then says scan using the metallic strip and it goes right through with no problem.

Not a card I use very much, but it's annoying so I went on the bank website for my account and looked for how to request a new card.

Like all banks, if the card is lost or stolen, they want you to CALL them immediately. If you have the card, but want a new one, you can order online.

Well, much to my surprise, this bank also then explains there is a $25 charge to get a new card and I will see the $25 deduction on next month's bill.

Huh?

I skipped ordering a new card. I'm pretty sure when the card expires and needs a renewal later this year, they'll just send me a new one, no charge.

My question .... is this now a standard bank procedure? I've never heard of this before. I bet the card costs no more than three cents to manufacture, so it definitely seems like a rip off.

Actually, it seems more like a Class Action Lawsuit in the making!

What's your take on this?

lgfan · ‎10-19-2012

I think it is a new standard procedure. I have never had to replace a credit card with a faulty chip. I usually get a new one when there is about a month left on the old one before it expires. I think the charge of $25 is a service fee and not necessarily the price of a new card.

SaveTheTurtles · ‎10-09-2023

@Tinkrbl44 wrote:

I don't recall the last time I had to replace a credit card with a faulty chip, so perhaps I'm the last to know ....

For the past week one of my credit cards wouldn't scan. The scanner makes a weird noise and the reader says Chip Malfunction.

If I try 3 times, the scanner then says scan using the metallic strip and it goes right through with no problem.

Not a card I use very much, but it's annoying so I went on the bank website for my account and looked for how to request a new card.

Like all banks, if the card is lost or stolen, they want you to CALL them immediately. If you have the card, but want a new one, you can order online.

Well, much to my surprise, this bank also then explains there is a $25 charge to get a new card and I will see the $25 deduction on next month's bill.

Huh?

I skipped ordering a new card. I'm pretty sure when the card expires and needs a renewal later this year, they'll just send me a new one, no charge.

My question .... is this now a standard bank procedure? I've never heard of this before. I bet the card costs no more than three cents to manufacture, so it definitely seems like a rip off.

Actually, it seems more like a Class Action Lawsuit in the making!

What's your take on this?

Clean the card chip and strip with rubbing alcohol and try it again.

Lakelife62 · ‎05-09-2023

@Tinkrbl44 wrote:

I don't recall the last time I had to replace a credit card with a faulty chip, so perhaps I'm the last to know ....

For the past week one of my credit cards wouldn't scan. The scanner makes a weird noise and the reader says Chip Malfunction.

If I try 3 times, the scanner then says scan using the metallic strip and it goes right through with no problem.

Not a card I use very much, but it's annoying so I went on the bank website for my account and looked for how to request a new card.

Like all banks, if the card is lost or stolen, they want you to CALL them immediately. If you have the card, but want a new one, you can order online.

Well, much to my surprise, this bank also then explains there is a $25 charge to get a new card and I will see the $25 deduction on next month's bill.

Huh?

I skipped ordering a new card. I'm pretty sure when the card expires and needs a renewal later this year, they'll just send me a new one, no charge.

My question .... is this now a standard bank procedure? I've never heard of this before. I bet the card costs no more than three cents to manufacture, so it definitely seems like a rip off.

Actually, it seems more like a Class Action Lawsuit in the making!

What's your take on this?

Call them and speak with a human. Explain the card is faulty and ask for the charge to be waived.

debfau · ‎03-25-2010

@Tinkrbl44 wrote:

I don't recall the last time I had to replace a credit card with a faulty chip, so perhaps I'm the last to know ....

For the past week one of my credit cards wouldn't scan. The scanner makes a weird noise and the reader says Chip Malfunction.

If I try 3 times, the scanner then says scan using the metallic strip and it goes right through with no problem.

Not a card I use very much, but it's annoying so I went on the bank website for my account and looked for how to request a new card.

Like all banks, if the card is lost or stolen, they want you to CALL them immediately. If you have the card, but want a new one, you can order online.

Well, much to my surprise, this bank also then explains there is a $25 charge to get a new card and I will see the $25 deduction on next month's bill.

Huh?

I skipped ordering a new card. I'm pretty sure when the card expires and needs a renewal later this year, they'll just send me a new one, no charge.

My question .... is this now a standard bank procedure? I've never heard of this before. I bet the card costs no more than three cents to manufacture, so it definitely seems like a rip off.

Actually, it seems more like a Class Action Lawsuit in the making!

What's your take on this?

I have not heard of being charged for a bad CC - I once had a CC that the chip wasn't working right and the bank sent me a new card and I hadn't even requested it get replaced.

D Kay · ‎04-20-2010

Maybe they charge to discourage people from being careless with the card or intentionally damaging the card. Most people wouldn't, of course,. but I'm sure there are some that would.

PA Mom-mom · ‎05-27-2015

@Tinkrbl44 I have had a few of the my bank cards go bad on me. The chip starts to be rejected. Then I wipe it on my shirt and it works. I even clean it, but it fails in the end. The bank always apologizes and sends me a new card with no charge. We've been with the same bank for 45 years, so that might have something to do with it.

on the bay · ‎03-09-2010

@Tinkrbl44,

I have had scanners not work all the time or right away and keep trying or the employee tells me to swipe instead.

Was yours not working for several different stores?

I don't know if it's just your cc but I don't think they should charge either if it is defective.

It's not like you lost it or anything.

"If you walk the footsteps of a stranger, you'll learn things you never knew. Can you sing with all the voices of the mountains? can you paint with all the colors of the wind?"