The introduction of "touch and pay" credit and debit card terminals across Australia is receiving a mixed response from consumers.Under this system, the automatic card readers can approve a transaction - up to $100 - without any requirement for a PIN or a signature.
The potential for abuse or fraud is obvious.
If a credit or debit card is used fraudulently, a customer using the traditional signature authorisation has some comeback to prove that the signature was not theirs.
Under the new procedure, if a card is lost or stolen, the customer has little or no proof that he or she was not the user of the card.
McDonald's staff at Mt Ommaney in Brisbane - which has introduced this new system - are telling customers that if their card is fraudulently used, the customer will be legally liable for any loss.
It is absolutely scandalous for McDonald's to be washing their hands of any responsibility.
McDonald's introduce this system for their own benefit and if a card if used fraudulently, they don't want to know about it.
Of all the anti-consumer things McDonald's has done in Australia over the years, this one would take the cake.
McDonald's are acting like clowns on this issue which is likely to blow up in their face.
The only good news in this consumer shambles is the advice from the Bendigo Bank.
Bendigo Bank is taking a totally responsible and honourable approach to the fraudulent use of a credit or debit card in such circumstances.Bendigo Bank advised one customer this week:
"If a merchant has adopted this service, the terminal will not prompt the customer for a PIN or signature. These small ticket transactions are considered a minimal fraud risk due to their low value and face to face environment. Any fraudulent activity made on the card for small ticket transactions will be investigated and covered by the cardholder's financial institution if found unauthorized."
Congratulations to the Bendigo Bank for this initiative but why should the Bank bear the loss while McDonald's - which adopts this system mainly for their own convenience - gets to keep the money from the fraudulent use of a credit or debit card?
McDonald's deserve one big Aussie raspberry over this.
