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| Bank Card Failure Blamed on Hidden Flaw |
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The nine-hour collapse of the nationwide bank card transaction system on Thursday was caused by a hidden defect in peripheral equipment, China Unionpay reported on Friday. Consumers were still fuming. Unionpay said it is improving its network to prevent future breakdowns. It is setting up a data back-up center in Beijing to operate if the company's Shanghai-based main server and network fail, it said on its Website. The problem, which was not described, made it impossible for automatic teller machines to make transactions among lenders. Shops, restaurants and other places couldn't accept bank cards. More than 920 million credit and debit cards were issued in China by the end of last year, said Unionpay. Millions of people were unable to use their credit cards and debit cards, but Unionpay said it was still compiling statistics. Affected cities included Shanghai, Beijing, Hangzhou and Xiamen, Shanghai Daily learned from calls. Many shoppers had to end their buying and tried to get cash from ATMs. There were low sales, long lines and much indignation. Sometimes shop assistants accompanied consumers to make sure they didn't walk out with merchandise they couldn't buy with a bank card. "At least Unionpay should have informed us of the system collapse through short message or other means to avoid all our embarrassment about having little money in hand," one consumer told Shanghai Daily. "Unionpay is sorry for the inconvenience caused by the technical problem to shops, card holders and institutions," the company said in a statement posted on its Website. Concerning possible compensation claims, a Unionpay official said the company has no legal relationship with consumers because the two sides didn't sign contracts. Some lawyers said they thought card holders and shops could claim the right to seek compensation, but it would be difficult to achieve. It's hard for shops to get evidence to show a specific loss due to the system failure, making it hard to figure compensation," said Gu Huimin, a lawyer at Norsn Law Firm. (Shanghai Daily April 22, 2006)
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