November 2009
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Neteller in “not a bank” shocker

In case you had any concerns about how secure your money is with Neteller’s dodgy prepaid debit card, this reply I had from them should help to scare you away completely.

Looking for a way that I’d be happy to use it to take some of my money out at an ATM, I asked whether it was possible to have two separate accounts so that my whole balance would not be available to a card that has zero consumer protection.

Thank you for sending us an email.

Unfortunately one customer can have only one NETELLER account and one Net+ Card. 

The security is our first priority and NETELLER has various security measures against fraud or theft. But the system can never be perfect. In this sense we would think it is important to use the NETELLER account and the Net+ for not a big amount depositing only the amount necessary to use.

In fact the limits of cash withdraw as well as the purchase using Net+ Card are quite limited; For cash withdraw 500GBP/day and 1500GBP/4 days and for purchase 1500GBP/day and 4500GBP/4 dasy.

Please understand NETELLER is offering the service of money transfer online and is not a bank. 

It’s quite the supreme failure in terms of offering reassurance to a customer.

If I may paraphrase: "Our system isn’t perfect", "Don’t trust us with more money than you absolutely have to", "The most you could lose to fraud is eight grand a week" and of course "We are not a bank".

We knew the last part already, but at least they’re not trying to pretend any more.

5 comments to Neteller in “not a bank” shocker

  • On behalf of NETELLER, I’d like to clarify the response you received and assure you that we do have measures in place to keep your money safe. As a member, your NETELLER eWallet and Net+ card come with fraud protection. This means that in the unlikely event that you suffer direct financial losses due to unauthorized activity in your NETELLER account or card, you are covered, provided of course that you have met standard security responsibilities.

  • Hi Andrew

    Thanks for the comment.

    Can you therefore confirm that, despite the wording of section 4.13 (that disputes may only be raised directly with a merchant) and 10.2 (that I am responsible for all unauthorised transactions made before I realise the card has been compromised) that in the event of fraudulent purchases made on my card, I would actually be able to initiate a chargeback?

    Similarly, what is the liability if a stolen or cloned card is used at an ATM? Your colleague’s response suggested that the limit of £500/day is an acceptable loss, and the T&Cs are quite clear that a withdrawal verified using a PIN is final.

    Can you also clarify whether the warning in section 2.5 (if Neteller goes bust, I lose all my money) applies only to the MasterCard, or also to my Neteller balance? I may have been a little naive regarding how secure my money is in Neteller in the past, assuming that FSA regulation protects it to a greater extent than it actually does. There’s two scenarios here: either it was never safe, or it is safe but activating the Net+ card removes this protection. Which is it?

    Finally, a personal peeve. Why is it that when using Neteller to deposit to a merchant, the secure code field is hidden like a password field, however when logging into Neteller, the secure code is visible on screen? This means that anybody with a line of sight to my screen can see all the information they need to access my funds.

    Looking forward to your response

    (For readers wanting to see the T&Cs I’m referring to in full:

  • Bob

    did u get a reply

  • Nope, I’ll try to follow up with them directly.

  • Finally, a response from Neteller about the questions I posed in the comments on this post a couple of weeks ago. I’ll try to speak to them next week, but first I wanted to share my email reader’s insight on the matter: Doesn’t really do them

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