Visa Israel Credit Cards (ICC) is considering preventing Bank Leumi again from blocking its customers’ Visa ICC credit cards, “Globes” has learnt.
Two weeks ago, Visa ICC took action to deny Bank Leumi the technical ability of canceling its customers’ Visa ICC credit cards. The move came after many Bank Leumi customers complained to Visa ICC that the bank unilaterally canceled their cards without advance notice, apparently in a bid to market them credit cards issued by Leumi Card, Bank Leumi’s new credit card company.
Things came to a head when Bank Leumi started canceling Visa ICC cards through its automatic tellers, which swallowed customers’ cards, as first reported by “Globes” yesterday.
Visa ICC and Bank Leumi top executives met a week ago, and Bank Leumi’s executives promised to discontinue the cancellation. Following this, Visa ICC agreed to restore Bank Leumi’s technical control over card cancellation.
During the period in which Bank Leumi was prevented from canceling Visa ICC cards, it reported cards it wanted to cancel as lost or stolen, although the cards were in customers’ possession.
Visa ICC’s spokeswoman confirmed the report.
Bank Leumi’s spokeswoman said in response: “ICC is panicking, and its allegations are false. Bank Leumi cancels cards only in compliance with customer’s requests, which are flowing in at a rate of 5,000 a day. Customers are ordering Leumi credit cards and asking for their Visa ICC cards to be canceled.
”The credit card cancellation process is being carried out properly, in line with the agreement between us. If ICC breaks the agreement, Bank Leumi will take the necessary measures. We assume that despite the panic, Visa ICC will continue to behave like a serious company belonging to a law-abiding bank that observes all banking regulations.”
Published by Israel's Business Arena on 18 January, 2001