NS blocks virtual cards from 3 providers over fraud allowing people to travel for free
NS has blocked the virtual debit cards of three payment services due to fraud that allowed people to travel without paying. Since July 1, all virtual cards from the online bank Revolut and the payment services Paysafe and Vivid have been blocked at NS. Paysafe’s virtual cards have also been blocked at all other public transport companies, NOS reports.
Fraudsters used the virtual cards to check in and out, but removed them after the trip and before the fare could be deducted. Because people can check in and out normally using this method, they are issued a valid ticket, and conductors can’t detect the fraud.
The OVPay system for using public transport with a debit card is technically designed so that the travel expenses are only debited after checking out, not immediately. This is to ensure that the public transport system runs smoothly. An immediate debit would mean that each check-in and check-out takes 10 to 15 seconds, a spokesperson for Translink, the company behind OVPay, told NOS.
So Translink believes it is up to the payment services to come up with a solution. Translink told NOS that it sent letters to Revolut, Paysafe, and Vivid in mid-May, stating that their virtual cards would be blocked unless they took measures to ensure the travel fare could be deducted.
It is unclear how much damage this type of fraud is causing the public transport companies. According to OV-NL, the trade association for public transport companies, it is mainly a problem for rail transport, and specifically NS. “It’s not a major problem for other operators such as bus companies,” a spokesperson said.
NS would not comment on the extent of the damage, but did speak of “serious abuse.” The Dutch rail company said it didn’t block the payment services lightly. “If it wasn’t necessary, we would rather not have done it,” a spokesperson told NOS. “This measure may now also affect passengers who travel with one of the banks and pay for their train journeys correctly.”
Revolut, an online bank that is very popular among short-term expats and tourists, told NOS that it disagrees with Translink and NS blocking its virtual cards “instead of addressing the root cause of the problem.” The online bank is “exploring the (legal) options in the best interests of its Dutch customers,” Revolut said.
Vivid told NOS that it is working on a technical solution and hopes to deploy it by September, but added that it is up to Translink to decide whether to lift the block on its virtual cards. Paysafe did not respond to the broadcaster.
