BSP to Phase Out Magnetic Cards in Anti-Fraud Crackdown

Papua New Guinea’s leading bank, Bank South Pacific Financial Group Limited, has announced it will completely withdraw magnetic stripe cards by the end of June in a nationwide effort to tighten card security.

 BSP to Phase Out Magnetic Cards in Anti-Fraud Crackdown

Customers across PNG who are still using the older cards have been strongly advised to switch to the more secure Kundu Chip cards, as the bank pushes forward with measures to curb rising cases of card fraud.

BSP said the decision follows ongoing incidents of card cloning, despite earlier safeguards introduced to limit such activities. Although the magnetic cards will continue to operate until the deadline, the bank has stressed that the upgrade is necessary to protect account holders.

The bank also addressed public reaction to the recent drop in daily transaction limits for older cards, from K1,000 to K500. It clarified that the change is not linked to service fees but is intended to reduce financial exposure if cards are compromised.

“The steps taken to reduce daily transactions have nothing to do with fees, but are a measure taken to better protect customer funds,” BSP confirmed.

In comparison, customers using Kundu Chip cards will benefit from higher daily limits and stronger protection, with transaction capacity reaching up to K10,000, including EFTPOS and ATM withdrawals.

The move aligns with international banking practices and is expected to strengthen PNG’s financial security framework as other banks begin adopting similar technologies.

To support customers during the transition, BSP has opened a dedicated Card Centre in Port Moresby, with additional centres planned for Lae and Mount Hagen to cater for growing demand.