This is an old version of the Code of Banking Practice. View the current Code

7.1 Cards
7.2 Liability
7.3 Merchant Card Services

 7.1 Cards

Issuing Cards

  1. We will only provide you with a new Card (other than replacement or reissue Card) on instruction from the Customer/s responsible for the account.
  2. Where Cards are issued to you personally, we must be satisfied about your identity before allowing Cards to be issued.
  3. When we first issue your Card, we will provide you with the terms and conditions relating to your Card and inform you which of your accounts your Card can access. We will also inform you whether the Card issued to you has more than one function and if so, what those functions are. The terms and conditions and functions may change from time to time.
  4. We will advise you of the current transaction limits that apply at EFTPOS and ATMs. These limits may change from time to time and are available on request.
  5. We will advise you of our fees and charges that apply to your Card.
  6. Additional Cards may be issued to a person nominated by you, if we agree. This is useful for ill or disabled customers. You will be liable for all transactions made by the additional cardholder/s.
  7. When we issue your Card we will inform you how to best safeguard your Card. For example, you must:
    1. take care of your Card. Do not leave your Card in an unattended wallet, purse or vehicle or anywhere where a thief could remove a Card without being noticed (particularly in nightclubs, hotels or restaurants);
    2. sign your Card as soon as you receive it;
    3. not give your Card to anyone or let anyone else use your Card (including the police, bank staff or your family);
    4. always remember to take your Card back after using it;
    5. tell us if you change your address, so a replacement Card is sent to the correct place; and
    6. report the loss or theft of your Card as soon as you are aware of it.

    Reporting Loss, Theft or Disputed Transactions

  8. We will inform you of what procedures you must use to report the loss, theft or unauthorised use of your card, PIN or Password both in New Zealand or from overseas.
  9. We will make available to you telephone numbers that you can use to report the loss, theft or unauthorised use of your card, PIN or Password as soon as you are aware that any such event has occurred.
  10. We will assist you if you encounter any difficulties with another participating bank’s ATM and cannot resolve them with the participating bank that owns the ATM.


  11. You should be aware of the following matters when requesting a Card, and following the issue of a Card:
    1. your Card terms and conditions will advise you that there are risks involved if you give your Card details and authorise transactions before you receive goods or services. You should consider the security and standing of the company or entity you are doing business with (including when purchasing goods or services non face-to-face);
    2. you may have a limited time to dispute a transaction. We will inform you of this time in our Card terms and conditions. Failure to report the incorrect, invalid or Unauthorised Transaction within that time will mean that we cannot reverse the transaction and you will have to pay for it. There are limited circumstances under which we can reverse a credit card transaction, particularly where the rules of a credit card company apply. For example, we cannot reverse a credit card transaction where there is a dispute with the Merchant as to the quality of the goods and services, or you have changed your mind about the quality of the goods and services or an error has been made by you or the Merchant on a Debit Card transaction; and
    3. if you notify us of an incorrect, invalid or Unauthorised Transaction charged to your Credit Card account within any prescribed time limit, we will investigate the matter. If the transaction is found to be incorrect, invalid or unauthorised we will reverse the transaction (this is sometimes called a Chargeback).

 7.2 Liability

  1. You will not be liable for losses before you receive your Card or, if applicable, your PIN and Password provided you have notified us of your current address. In any dispute about receipt of a Card, PIN or Password that is not issued to you in person, we will not rely on proof of despatch to your correct address as proof that the Card, PIN or Password was received.
  2. We will fully inform you in our Card terms and conditions what liability you have in relation to the loss or theft of your Card or disclosure of your PIN or Password.
  3. Once you have advised us that your Card has been lost or stolen, or your PIN or Password disclosed, either in New Zealand or overseas, you will not be responsible for any unauthorised use of your card after that time. This protection will not apply if you have acted fraudulently or negligently.
  4. You will be liable to pay no more than $50 of any loss that occurs before you notify us. However, this $50 limit will not apply if:
    1. you have acted fraudulently or negligently; or
    2. you have contributed to the unauthorised use of your Card, for example (but not limited to) breaching our terms and conditions by:
      • selecting unsuitable PINs or Passwords (see clauses 6.1(c) and (d) of this Code);
      • failing to reasonably safeguard your Card;
      • keeping written records of PINs or Passwords;
      • parting with Card and/or disclosing PINs or Passwords to any other person;
      • failing to take all reasonable steps to prevent disclosure to any person when entering PINs or Passwords; or
      • unreasonably delaying notification to us of the loss or theft of Card, or of the actual or possible disclosure to any other person of PINs or Passwords.
  5. In the event that clause 7.2(d) applies, your maximum liability will be the lesser of:
    1. the actual loss at time of notification; or
    2. the maximum amount that you would have been entitled to withdraw from your account between the time your Card was lost/stolen and the time you notified us.
  6. If your card gives you access to an account with a Credit Facility (for example, a Credit Card or a revolving Credit Facility), failure to look after your Card or any associated PIN could result in a substantial loss for which you could be held responsible.
  7. You are not liable for loss caused by:
    1. fraudulent or negligent conduct by employees or agents of banks or parties involved in the provision of electronic banking services;
    2. faults that occur in machines, Cards or systems used, unless the faults are obvious or advised by message or notice on display;
    3. Unauthorised Transactions before you have received your Cards, PIN or Password; or
    4. any other Unauthorised Transaction where it is clear that you could not have contributed to the loss.

 7.3 Merchant Card Services

  1. Our agreements with our Merchants for the processing of Card transactions will have their own terms and conditions applying to use, security and liability. These Merchant service agreements will also include information on the settlement and reconciliation of your Merchant facility. These terms and conditions apply in addition to the minimum standards of the Code.
  2. We will also inform our Merchants of the associated risks of accepting Card transactions especially those where the Card is not present.
  3. We will obtain a Merchant’s explicit consent before changing their Acquiring Bank.
  4. We will provide a robust, encrypted and efficient EFTPOS payment system.
  5. Merchants are required to safeguard your Card details so that no unauthorised person gains access to these details. if Merchants fail to keep such details secure, they may be liable for losses associated with misuse of the cardholder information.