Did You Guys Know, You Can Use Your Credit Card Without Activating it ?

[glenn.im]

So, I applied for a New ANZ credit card and before I could collect it from my Postbox, someone stole it.
So I rang up ANZ and told them about it and they cancelled my old card which I never received and never activated it.

Today I received my new card and after activating it, I see I have multiple charges on my account totalling approx 200$ and ANZ confirmed that all of these charges were on my first credit card which was stolen from my postbox.
I asked the bank how it was possible to use the credit card without activating it but unfortunately she did not have an answer for it.

So I went online and did a bit of research and found out that, most of the credit cards can be used for smaller transactions without being activated.
Especially if they have Paypass or Paywave. I am assuming, I would get my money back but this situation isn't impressive at all.

Why would the banks allow credit cards to be used without activating it :|

 

[jxv]

It took nearly three weeks for my NAB cards to arrive, just as I was about to ring up about it. They did not require activation. "Sign the back of the card and it is ready to use." It would have been easy to steal and use them.

Not very secure!

 

[TomVexille]

I imagine this is a fairly common scam and you won't be liable for those charges.

 

[Buzzard]

Maybe the banks don't lose enough to worry about?

 

[TomVexille]

Maybe the banks don't lose enough to worry about?

IIRC the banks don't lose at all, they recoup the money from the merchant.

 

[blackcat20]

IIRC the banks don't lose at all, they recoup the money from the merchant.

That's what I was told when my card went shopping solo.

 

[williamsf1]

It took nearly three weeks for my NAB cards to arrive, just as I was about to ring up about it. They did not require activation. "Sign the back of the card and it is ready to use." It would have been easy to steal and use them.

Not very secure!

I had a issue with NAB where they would not post cards to me but had to collect in person from a branch . The reason given was my postcode was high risk for mail theft

 

[glenn.im]

I had a issue with NAB where they would not post cards to me but had to collect in person from a branch . The reason given was my postcode was high risk for mail theft

Yeah! ANZ asked me to pick up my cards from the branch.

 

[jxv]

I had a issue with NAB where they would not post cards to me but had to collect in person from a branch . The reason given was my postcode was high risk for mail theft

NAB must think I live in a safe area then!

 

[Pushka]

The Banks withhold a percentage of $ from the merchant in the case of disputed transactions.

 

[kermatu]

Quite understandable in the past - I assume as an incentive to merchants to undertake appropriate checks. But in the day of banks promoting pay wave and speedy transactions -- this seems a bit harsh on retailers??

 

[Sdtravel]

This might be interesting for those who haven't seen it.

https://youtu.be/yDOtENyOxyA
Full episode has dome other interesting revelations in it

 

[Mal]

A card should not be able to be used for Paywave et.al without the first transaction being a chip and pin. Most banks issue cards like that, but obviously some don't!

 

[Ewing]

I had a issue with NAB where they would not post cards to me but had to collect in person from a branch . The reason given was my postcode was high risk for mail theft

Same - they won't send to my home even though I live in a secure building with concierge and security.

The problem is - every time I get a new card issued they send it to a branch 300km from home so I have to then get it redirected to a closer branch for pickup.

 

[Buzzard]

Same - they won't send to my home even though I live in a secure building with concierge and security.

The problem is - every time I get a new card issued they send it to a branch 300km from home so I have to then get it redirected to a closer branch for pickup.

Can't fly there to collect it?

 

[Deleted member 29185]

every time I get a new card issued they send it to a branch 300km from home

Now that's a big suburb!

 

[Cryptarcadian]

A card should not be able to be used for Paywave et.al without the first transaction being a chip and pin. Most banks issue cards like that, but obviously some don't!

Yeah I got a replacement card recently and that was how it worked, as stated on the letter. I had to first use it with chip and PIN before it was accepted for contactless. In practice tapping resulted in a "please insert card" the first time (I had to try it out anyway heh). I'm surprised some banks choose not to do that? Seems like a zero-cost way of reducing at least some fraudulent transactions.

 

[aaronjames000]

Similar story... I received a Westpac Altitude Black with my home loan and chucked in the draw when I received it (as I had target spends to hit on other cards). A couple of months later started using it but was having issues with it being declined at some stores. Called up Westpac to ask what was going on and they told me I hadn't activated my card yet, even though I had spent a couple of hundred dollars doing paywaves... It just wouldn't let me spend any more than about $20 in any one transaction... I questioned the person on the phone and they said it was standard practise for the card to work un-activated... Pretty silly!