Debit-card errors reinforce need for vigilance

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Although bank officials say computerized debit card systems are virtually foolproof, humans are not — and it makes good sense to check your online statement a couple times a week.

Brady Brim-Deforest, an Ashland advertising executive, found out the hard way, setting up a monthly automatic deduction with an online hosting service. It went out of business and disappeared, but kept charging his debit card for a monthly fee.

Another time, at a film festival, he bought a book from vendors he didn't know. Many months later, the vendor charged his account several times more than the amount.

Both times, his bank made up for the fraud but he had to file reports and receipts and it took him 45 days, an experience that led to him canceling his card and using cash or credit cards.

Premier West chief operating officer Rich Hieb in Medford was making a retail purchase and the clerk had trouble with the buttons, but let him know she might have hit "enter" twice and he should check his statement.

He did, and she was correct. The double-charge was quickly deleted.

Two customers at Ashland Safeway last week got double-billed and the corporation quickly made good with refunds. The problem?

This time it was the computers, affecting "only a handful of debit card customers in a handful of stores," said Safeway public affairs director Bridget Flanagan in Portland.

One customer, Dave Sanders of Ashland, caught the Safeway problem last week when, in checking his online bank statement, found his purchase of $132.96 had been deducted twice.

"It's ridiculous. It could have resulted in Safeway collecting thousands of dollars and making a big problem for people who live paycheck-to-paycheck and it (the refund) should have been done live, electronically," said Sanders, who got a cash refund at the Ashland Safeway.

Sanders said that when he contacted Safeway information technology in Phoenix, Ariz., he was told to get printouts of the error from his bank and that a refund to his account would take three to five business days.

However, Sanders threatened a "class-action lawsuit," he said, and was then told to go get a cash refund at Ashland Safeway. Another customer was in line behind him at the manager's booth with the same problem, he said.

Ashland Safeway Assistant Manager Joseph Smith also assured customers, noting, "Just give us a call if there's a problem. We've got a procedure to take care of those folks. We've only had two complaints." Workers at the two Safeways in Medford said they hadn't heard of the problem.

Safeway is locating customers who were double-billed and, Flanagan added, "We'll be making good by it. It's not a panic issue. You can't do business for 80-plus years and not fix things and fix them fast."

Banks use card providers who capture data from merchants and transmit it to banks, said Hieb, adding, "I've never seen the system make a mistake since debit cards were invented. In a case like Safeway, it would have to be an individual (clerk) who made the error."

It's a bother in this instantaneous digital age, he added, but consumers should record all debits in a check register and reconcile that at least weekly with the online statement, keeping in mind that both debits and checks generally take a day or two to show.

Gerry Reno of People's Bank in Medford confirmed the extreme rarity of computer error, noting "No, I've never heard of it happening." Once the transaction is entered, it's in the system and doesn't get touched by a human again, she added.

Dean Fortmiller of Consumer Credit Counseling in Medford urged debit card users to keep all receipts and reconcile them with their statement.

"Banks are very confident in banking online and there's always the chance the problem might be identity theft. Since it happened to my parents — someone had their card in Europe when my father was in the hospital here — I check my online statement daily. I've never found a mistake."

John Darling is a freelance writer living in Ashland. E-mail him at jdarling@jeffnet.org.

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