Errors in ATM transactions leave clients cash-strapped

A growing number of bank customers are trying hard to recover money deducted from their accounts due to frequent technical snags in ATMs.

Case I: Eric A., a European managing director at a leading interior product company, tries to withdraw money from an ATM in Jumeirah on May 3.

The machine neither dispenses any money nor any receipt for the transaction. But a few minutes later, Eric receives an SMS alert on his mobile phone saying the Dh800 he had been trying to withdraw had been deducted from his account.

Case II: Patrick M. is going on annual leave back home to the Philippines this week and needed money urgently. He goes to an ATM in Maktoum Street and tries to withdraw Dh5,000.

The screen flashes a "transaction declined" message and no money is dispensed. Patrick tries again, this time to withdraw Dh3,000. The same message comes back.

He goes to another ATM and withdraws Dh2,500, but his balance shows Dh125, although Patrick is sure his balance was Dh7,000.

He calls his bank and is told he had withdrawn Dh5,000 and then another Dh2,500. Therefore, he had no money in his account.

The delay in the recovery procedure, however, has left many customers in a difficult situation.

Patrick filed a complaint with the bank and was told he would get his money back in two weeks, leaving his holiday plan in disarray.

Eric, on the other hand, was told by the branch manager of his bank that the problem would be corrected in three days.

Three days passed and there was no word from the bank. Eric got in touch again and was told that the rectification would take another two weeks and he would have to fill out a cardholder dispute form.

Eric has not received an email or a text message confirming the transaction, but was told by the bank that the money would be credited to his account soon.

Working for more than 20 years in the region, Eric has travelled extensively and has used ATMs around the world. "This kind of thing has never happened before, and I have received no apology," he said.

A senior official from a reputed multinational bank, however, said: "When such an incident occurs, the matter is taken up immediately by the department concerned.

"A dispute form is faxed and if another bank's ATM is involved, the procedure to rectify the transaction error takes up to three weeks, as it is routed through the Central Bank."

He, however, conceded that as soon as the money is credited to the customer's account, an SMS confirmation should be sent.

How to get a redressal after an ATM fault

• When a client lodges a complaint over transaction irregularities, the bank usually faxes a dispute form to the customer immediately.

• If the ATM involved is of another bank, the transaction error is rectified via the UAE Central Bank.

• But customers say banks should immediately redress the problem and notify them via email or SMS.