ICICI asked to pay damages on poor credit card transactions

ICICI Bank has been directed by a Consumer Commission to pay over Rs one lakh to a businessman after payments made to him for goods purchased by customers through credit cards failed to get credited into his account.

Holding ICICI bank guilty of "deficiency in service", the Central Delhi District Consumer Commission, headed by its President B B Chaudhary, directed it to pay Rs 91,350 for the two transactions done through the machine installed in his firm by the bank to the owner of a garments firm.

Besides this, the forum asked the ICICI Bank to pay Rs 20,000 as damages and litigation cost to the firm.

"The deficiency in service has been caused to the complainant (businessman) by not giving credit of Rs 91,350 to him," the bench, also comprising its member M Siddiqui, said.

The Delhi-based owner of Amar Stitching Garments, in his complaint, had alleged that he was entitled to get Rs 91,350

as payment of goods sold to two customers through their credit cards as the bank failed to credit the amount in his account.

He alleged that on September 19, 2008, when he swiped credit cards of two customers through the machine installed in his firm by the bank, the transactions were approved by it but no payment was made to his account.

He said he had sold goods worth over Rs 45,000 each to the two customers and the bank was expected to make payment of the said amount in his account.

The ICICI bank, however, said both the transactions were done without taking proper authorisation from them.

It said as per the bank policy, off line transactions are kept on permanent hold and payments are not released as they are done without proper authorisation from the issuer (bank).

The commission, however, directed the bank to pay the amount taking into account that it had charged commission for those transactions.