ULSTER BANK has admitted that credit cards issued to thousands of customers this year are faulty and will have to be reissued over the course of next month.
The bank has been automatically switching customers to its new World Card, which is managed by Mastercard. However, due to a technical flaw, the cards cannot be read by all chip-and-pin terminals and are being refused by retailers.
When some customers highlighted the issue with the bank in recent weeks they were told it was known already and the bank suggested they ask retailers to bypass the chip-and-pin system and fall back on a signature if the problem manifests itself.
Retailers are, however, under no obligation to bypass the security measure at the request of a cardholder and many are reluctant to do so because if the cards are subsequently found to have been fraudulently used they will have little or no comeback from the bank.
One possible explanation for the malfunctioning cards is that they were manufactured with the numbers embossed too close to the chip and that is preventing some readers in shops from making proper contact with the chip.
In a statement yesterday the bank accepted there was a problem and said it had "worked quickly to identify and resolve this issue". It said new credit cards would be sent to all Ulster Bank World Card customers as soon as possible. "We apologise for any inconvenience caused to our customers."
When asked how many customers were affected, the bank declined to say on the grounds that the information was "commercially sensitive"".
It is not the first time the bank has had difficulties with the roll out of new cards. When it introduced its Visa debit card nearly two years ago, customers reported being unable to get cash back with the new cards.