Banks that disabled InterSwitch Cards for Internet Use
One of the core functions of an InterSwitch ATM/Debit card is using it to pay for goods and services via the Internet. However, fraud has always been a big problem since all that is needed to use this card on the Internet is the 19-digit card number and PIN code. I am not sure InterSwitch WebPay cross-checks the card holder’s name and billing address as is standard procedure with international Visa/Mastercard payment gateways. Fraud is so prevalent that I am not surprised by the information I received today from a Nigerian merchant that accepts InterSwitch cards online:
Dear esteemed customer,
Are you keeping your money with the right bank?
If you have ever received a ‘Restricted Card’ error message while trying to pay for goods or services online,
we feel that you’d like to be informed that the following banks have disabled the use of their cards for online purchases.
This action limits the usefulness of the card and we’d like to suggest to our esteemed customers to
open their accounts with other banks not on the list.
- UBA
- First Bank
- Oceanic Bank
- Access Bank
- Intercontinental Bank
- Diamond Bank
What is the use of a card that cannot be used via the Internet? This is ridiculous. This reminds me of an earlier blog post: E-commerce in Nigeria: We’re back to the stone age!
What do you think?
This is an example of one step forward and two steps backward. Let’s just hope that other banks don’t do the same. What the banks need to do is not to disable their cards being used online but to implement security features. This clearly reveals that Nigeria still has a long way to go as regards ecommerce. It is well
These banks cannot be blamed for their action; they are simply doing what they feel is best to protect the funds of their customers. Interswitch really need to up their game if they want e-commerce to thrive in Nigeria.
I am not surprised at all, some guys at the top management level are not really creative. They rely on input from the younger guys. Instead of them to look for a way to make this payment mode more secured ,they tread the way of cowardice. Extra validation and authentication of card holder will do this job.
I advise these listed banks to immediately sack who ever gave them this idea. He is not competent. PERIOD
I am ot quite surprised about the cyber politics played in Nigeria system, if such services are disabled what it is the importance of the reconcilliation of bank and MEGA banks in Nigeria. I strongly believe that the entire MEGA banks in Nigeria are nott as strong as a single MEGA bank in Brazil. I have applied for a debit and credit card with my bank Oceanic Bank International, to-date i have received any from them, the excuse is that the person in charge is having issue with the head office, but from my own finding this isn’t true. So if there is no card then no better service. I pray Nigeria is deleted from the RED Zone countries in the World Alert List.
Can someone please tell me where the “sense” is in having an e-payment gateway that does not verify the card holders details before processing? This is terrible for Nigeria.
To think i was one of the guys praising the new development.
So sad!!
Dear All,
The problem with all the systems is that they are not well thought to suit Nigerian market.
It may be easy to blame the fraudulent ones in Nigeria, but it is a fact the problem is prevalent.
No merchant will like to lose out because inadequately thought ideas like interswitch, etranzact etc. The order day I read on Interswitch’s website that I can use my cashcard to transfer to a friend bank account and vice-versa etc. It turned out to be a stupid lie.
The problem with Nigeria is that of greed. Dont forget that Interswitch is not a private orgaisation. It is owned and funded by most of the banks on the switch. A company that switches transaction(like interswitch) does not issue a virtual account(like cashcard) in direct competition with it’s owners. This is the flaw in the whole Interswitch saga.
I have tried a number of so-called online transaction, in Nigeria and I can tell you all the one I found most reliable is GLOBALDOSH.COM. Although, low-profile you can use on any website throughout the world via one of their proxyshopper, GDPROXY.COM.
I have used them continuosly for over 3 years and all my stuff from Amazon, E-bay etc were delivered because they guarantee delivery or your money-back.
Nigerians always try to run before they can walk.Because a technology exists doesn’t mean a simple way that work should not be embraced instead of a new technology that disappoints all the time.
Comments are welcome!!!