The Australian Financial Services Association has been slammed by an expert for promoting cards that have no redeeming value and should be withdrawn.
Dr Andrew Meecham from the Australian Centre for Science in the Public Interest (ACSPI) said a lot of cards have no value.
“I think there’s a fair amount of money being made on cards that don’t have any redeeming qualities, which is a very serious issue,” he said.
Dr Meech said the card industry needs to do a lot more to promote the value of the cards and discourage them from being played.
“Card companies need to put some effort into making sure the cards are really attractive,” he told the ABC.
“There are a lot, if not most, of these cards that are quite appealing, but when you put them on a supermarket shelf it doesn’t make much sense.”
Dr Miech said there was a “significant problem” of counterfeit card transactions.
“It is an issue that is getting worse and worse, but it’s getting worse,” he added.
The card industry is currently in the midst of a crisis.
“Over the last 12 months the number of counterfeit and stolen card transactions has gone up by about a third,” Dr Moocham said.
“We have a large number of cases of card holders being unable to complete their transaction, and it’s also the case that the fraudsters are not only trying to get around the card system but also the cardholder’s ability to complete the transaction.”
The ACCSPI’s executive director Pauline Hanson, said the industry had failed to make the change.
“This is a situation that has been created by the card companies themselves and they are not doing enough to promote these cards,” she said.