Replacement credit card works without needing to 'activate' it

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Forums › Finance and wealth management › Replacement credit card works without needing to 'activate' it

evnafets

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#315656 3-Aug-2024 17:11

Pulling out a conversation started by @geek3001 from the Paywave fees are too high thread, prepare to be super surprised...

geek3001:

gzt: Anyone here will be super-surprised if any NZ bank really does that. If you name the bank and specific card the most likely thing that will happen imo - someone here using the exact same card will tell you you're at least partially mistaken about it.

Fair comment, however, with respect I don't believe I am mistaken.

I have re-checked my card activity and have confirmed that I have used the card twice, the first time for an online transaction which completed without any challenges, and the second time for a payment in a supermarket where contactless payment went through on the first attempt with no requirement to insert the card and enter a PIN.

The credit card I have been sent is effectively fully functional upon receipt - no need to activate it.

The letter accompanying the new card had three instructions:

1. Sign the back of your new card.
2. Your PIN is the same as your previous card.
3. Good to Go! Your new card is ready to use.

There was no instruction to activate the card.

I have a 'please explain' query lodged with the bank, as I suspect something has gone very wrong with the card issuing process.

My original post above was intended to offer a view that some card fees were to an attempt to collect funds to help with refunds for fraudulent charges caused in part by my current card reissue experience - I now fear I have hijacked this thread, so apologies, better get back on topic.

Just confirming that I have experienced exactly the same scenario.

My brand new card arrived earlier this week, and I intentionally tried to use it via paywave for $130 expecting to have to put in my chip/pin.
It went through without an issue.

I did however receive a text from the bank: "We see you've started using your new card ending xxxx with a transaction for $130 at YYYYY. Please reply NO if this was not you."

So not entirely unsafe/hopeless, but still a change from the status quo - and anybody who intercepted the card could have started using it

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63 posts

Master Geek

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#3267863 3-Aug-2024 17:24

Excellent - so I am not going mad after all 😄

I did not receive a text congratulating me for using a new fully activated card.

I am still waiting on a satisfactory explanation from my bank, which I may as well now name, since I am clearly not alone in my experience... ANZ, for why they are effectively sending out a credit card configured as a gift card, that can be freely used so long as the user does not get challenged for a PIN (card present transaction) or some form of 2FA (card not present / online transaction).

RunningMan

8953 posts

Uber Geek

#3267868 3-Aug-2024 18:19

How many people would see the text and not reply thinking it was spam? It's like the difference between opt in/out - the default situation should not be a fully functioning card.

Jase2985

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#3267874 3-Aug-2024 19:11

RunningMan:

How many people would see the text and not reply thinking it was spam? It's like the difference between opt in/out - the default situation should not be a fully functioning card.

Given it would likely be straight after you have used the card, one would think most people would be able to put 2 and 2 together.

RunningMan

8953 posts

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#3267881 3-Aug-2024 19:35

Jase2985:

Given it would likely be straight after you have used the card, one would think most people would be able to put 2 and 2 together.

No, wouldn't think very many people would put it together at all. It would just be seen as a random unsolicited message claiming to be from a bank.

Oblivian

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#3267911 3-Aug-2024 22:50

For what it's worth the paywave limit was raised for covid to assist contactless from $80 to $200 requiring PIN in 2020.

So no real surprise other than the activation alert.

Senecio

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#3268042 4-Aug-2024 13:34

I hope ANZ don't send out a fully functioning card. Mine is due to be replaced soon and it seems like there's post on the local Facebook page every few days reporting stolen mail.

RunningMan

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#3268046 4-Aug-2024 13:53

It seems like that is what they are doing, with the only safeguard being an SMS that there's a really high chance of being considered random spam and ignored.

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Oblivian

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#3268049 4-Aug-2024 14:03

It appears BNZ still have activate with pin (which I thought was the case with ANZ so perhaps they've changed card company)

It would appear ANZ Australia you need to go into the app and activate it but that may be for new cards not reissue with a new date.

My visa was done end of last year. I'll see if I still have the letter. But seem to recall it was more or less go ahead and paywave away. Guess thats why they have fraud insurance if it wasn't your fault.

allan

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#3268051 4-Aug-2024 14:11

Oblivian: It appears BNZ still have activate with pin (which I thought was the case with ANZ so perhaps they've changed card company)

It would appear ANZ Australia you need to go into the app and activate it but that may be for new cards not reissue with a new date.

My visa was done end of last year. I'll see if I still have the letter. But seem to recall it was more or less go ahead and paywave away. Guess thats why they have fraud insurance if it wasn't your fault.

Given that Dropbox was allowed to charge me a renewal fee on an expired card (also ANZ NZ - Visa), it seems as if:

Yes, the replacement card is instantly active.
Card expiry dates don't mean a thing.

Stu

Hammered
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#3268100 4-Aug-2024 16:56

Oblivian: It appears BNZ still have activate with pin (which I thought was the case with ANZ so perhaps they've changed card company)

It would appear ANZ Australia you need to go into the app and activate it but that may be for new cards not reissue with a new date.

My visa was done end of last year. I'll see if I still have the letter. But seem to recall it was more or less go ahead and paywave away. Guess thats why they have fraud insurance if it wasn't your fault.

My BNZ Visa card that was just renewed required activating within the BNZ app before it could be used.

People often mistake me for an adult because of my age.

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Oblivian

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#3268102 4-Aug-2024 17:00

That's the alternate it would appear.

https://www.bnz.co.nz/support/mobile-banking/cards/activate-reissued-flexi-debit-visa-or-credit-card

cisconz

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#3268162 4-Aug-2024 18:22

allan:

Given that Dropbox was allowed to charge me a renewal fee on an expired card (also ANZ NZ - Visa), it seems as if:

Yes, the replacement card is instantly active.
Card expiry dates don't mean a thing.

That is different. It is called VAU. As Michael explained here

Hmmmm

Huntakillaz

268 posts

Ultimate Geek

#3268407 5-Aug-2024 18:47

This is Bnz:

evnafets

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#3268626 6-Aug-2024 14:13

Jase2985:

RunningMan:

How many people would see the text and not reply thinking it was spam? It's like the difference between opt in/out - the default situation should not be a fully functioning card.

Given it would likely be straight after you have used the card, one would think most people would be able to put 2 and 2 together.

Yes, if you are the one who just used it.

But what if it was stolen / intercepted and the thief then used it and triggered the message?
What would you suspect in that scenario?

I for one would not be responding to that text, but almost certainly be giving the bank a call directly about it.

RunningMan

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#3268692 6-Aug-2024 15:13

evnafets:

Jase2985:

Given it would likely be straight after you have used the card, one would think most people would be able to put 2 and 2 together.

Yes, if you are the one who just used it.

But what if it was stolen / intercepted and the thief then used it and triggered the message?
What would you suspect in that scenario?

I for one would not be responding to that text, but almost certainly be giving the bank a call directly about it.

Exactly. I thought this was kinda obvious, but in 100% of the card theft cases you have never just used the card, so there is nothing to put 2 and 2 together, just the seemingly random text message claiming to be from your bank (which they keep saying to be careful of unexpected contact).

Either the card arrives normally:
1) Card sent to user
2) User gets card and uses for the first time
3) SMS received that you don't need to respond to for genuine use so not actioned

Card intercepted in the mail
1) Card sent to user
2) Bad guy gets card and uses it
3) User gets SMS claiming to be from bank that they have to respond "NO" to. No relation to anything they've just done or expected, claims to be from bank. Does what Spam guidance says to do and doesn't click link or respond.

Some people may contact the bank on receipt of the SMS, others won't. It's too hit and miss. The message should be sent in the positive, not negative, so requires a positive confirmation after the first transction, be that SMS, app, or otherwise.

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