BSP Assures PNG Customers Kundu Card Upgrade Will Not Affect Funds

Bank South Pacific (BSP) has assured its PNG customers that the replacement of its old Kundu Magnetic Stripe Cards with new chip-enabled cards will not affect account balances or ownership of funds.

The bank has moved to deactivate the older cards as part of a wider security upgrade, with the new Kundu Chip Card designed to provide stronger protection against unauthorised transactions, fraud and card cloning.

BSP deactivated all Kundu Magnetic Stripe Cards on August 31 as customers were encouraged to move to the newer card technology.

The change has, however, raised concerns among some customers after reports that the new Kundu Chip Cards were being rejected at certain EFTPOS and ATM terminals operated by other banks.

Responding to questions from TVWAN News, BSP said the issue was related to an interchange upgrade that is still pending within the Bank of PNG Retail Electronic Payment System.

The bank said it was working with the Bank of Papua New Guinea and other financial institutions to resolve the interoperability issue.

BSP said banking technology had changed considerably, making older magnetic stripe cards more exposed to fraudulent activity and cloning.

More than 890,000 customers have already migrated from the magnetic stripe cards to the new Kundu Chip Cards.

The bank said the migration brings its card services closer to international banking security standards, while placing greater emphasis on protecting customer funds.

Customers who have not yet changed from the old Kundu Magnetic Stripe Card have been advised to obtain the new chip card.

BSP also acknowledged that customers may occasionally encounter problems when using the new card at particular terminals.

Customers experiencing difficulties have been advised to try another BSP ATM or EFTPOS terminal, use alternative services such as Wantok Wallet, or visit their nearest BSP branch.

They can also contact BSP Customer Service if the problem continues.