BoG gives directive on ATM Cards

The Bank of Ghana (BoG) has issued a directive detailing how banks and Specialized Deposit-Taking Institutions (SDIs) must treat captured payment cards in Automated Teller Machines (ATMs).

Issued in pursuance to Section 92 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), this directive applies to all Regulated Financial Institutions (RFIs) as well as ATMs located across the country.

Per this directive, the Bank seeks to address the perennial complaints that are associated with the capture of payment cards at ATMs of Regulated Financial Institutions.

The Bank’s action is hinged on two main objectives. For the first time, this provides a standard procedure by retrieving payment cards captured by Automated Teller Machines. Secondly, it prescribes conditions for releasing, transporting or destroying payment cards captured by Automated Teller Machines.

Conditions for payment card capture in ATMs

Released yesterday, June 29, 2021, the directive indicates the circumstances under which an ATM can capture a payment card including customer entry of wrong PIN beyond permitted number of times during ATM transaction as well as the condition that customer forgets to withdraw payment card in ATM card reader after transaction

In addition, the directive applies where there is a session time out during ATM transaction and extends to include circumstances where there’s a technical issue such as power outage, network challenge and malfunction of the ATM.

Also, it applies where a payment card is flagged as “Card Capture”, “Stolen Card”, “Lost Card” or any other status that has been parametrized by an issue for which a payment card may be captured where card is damaged or expired on an ATM as well as situation where card appears to be fraudulent including plain cards, cardboard cards, etc.

Customer actions

Following the directive, payment cards captured for reasons given with the exception of situations where cards appear fraudulent or stolen, lost and captured, shall be blocked or disabled by the Issuer’s Host or issuer.

However, in the case where the last two conditions hold, the customer may report and release the payment card to law enforcement agencies.

That said, an issuer may notify a card holder whose card has been captured by an Automated Teller Machine through a Short Messaging Services (SMS).

Lodging complaint

The directive provides simple ways by which card holder may lodge complaint to issuer. The first responsibility lies on card issuers to provide reliable avenues for card holders to report issues of card capture or make a request of card blockage.

The card holder whose card has been captured by an ATM may lodge a complaint with the acquirer or the issuer and provide all relevant information to assist in identifying the card holder.

Other information required include a valid national ID card, or valid driver’s licence, or valid passport, or valid SSNIT ID, or valid voter ID card.

Also, an acquirer or issuer shall inform a card holder of the timeliness and procedures for reclaiming a captured card.

Meanwhile, in the case where an acquirer is unable to authenticate the card holder to a captured card and so is unable to release the card, it is the duty of the acquirer to inform the card holder of its decision to transmit the card to the issuer.