Nigeria: The gains, pains of bank customers paying N1000 for trapped ATM card

Bank customers in Nigeria are in for a raw deal. They are to pay N1000 to secure a new ATM card, only if their cards get trapped inside the cash dispensing machine of another bank, or even their banks.

Samuel Akpan runs a saving account with Zenith bank. Tuesday, November 1, he visited the first gate branch of the bank, located along Lateef Jakande road in Ikeja, Lagos, south-west Nigeria.

His words: “I slotted my Zenith bank issued ATM card to withdraw N5000 from my account. Few minutes later, I saw out of service.”

With the card out and Akpan, a Lagos-based journalist desperately looking for a way out, he explained that he crossed  the road to Stanbic IBTC to slot the card in the machine with the hope of withdrawing the money. No dice and the card got trapped.

The journalist waited at the bank premises till 8.am and entered the making hall to inform the customers’ service staff only to be told rather politely that his card will be perforated. Meaning, the card will be destroyed.

Not satisfied, Akpan walked into Zenith bank with the same complains and the ever polite staff at the customers’ service point told him the same story.

He was left with no other option at that point in time than to grab a withdrawal teller, filled  and present it to the cashier for his cash.

Trapped ATM card perforation issue is a global one and has been on in the banking sector in Nigeria for long. But, the likes of Akpan, even as a journalist are just coming to terms with it.

Last week, the Central Bank of Nigeria issued a “guideline for card issuance and usage in Nigeria” and instructed that any trapped ATM card be rendered useless through perforation.

Dipo Fatokun, director, banking & payment system department of CBN described the policy as global practice, saying that it not only applies to other banks, but ATM cards trapped in issuing banks will also be perforated.

His words: CBN introduced the policy in order to protect bank customers, assuring that the apex bank will work with all the banks to ensure that the yoke of bank customers are made lighter.

Mama Iyabo, a petty trader at Ogba market in Lagos is one of the millions of unbanked people in the country. She told this writer that she keeps her money at home.

But, Monday Boniface, a lawyer thinks that  banks are trying to rip off their customers with the N1000 payment for trapped ATM card issue.

“If there is not network or the almighty PHCN takes light or the bank customer operating ATM machine is not familiar with it and the card is trapped, he or she must pay”, Boniface argued.