Changes to Payment Processing Over the Weekend Led to Overcharges Skip to content

Changes to Payment Processing Over the Weekend Led to Overcharges

By Erik Pomrenke

digital payment iceland online banking
Photo: Unsplash – Blake Wisz.

Updates to digital payment systems caused confusion over the weekend, when some consumers in Iceland were charged excessive amounts for some everyday purchases.

On Saturday, April 15, Íslandsbanki sent out a message to its customers in advance of the change, stating: “This weekend, there will be a global standard change implemented by payment processors that involves the removal of decimal points from Icelandic Króna currency. As a result, Mastercard will be removing decimal points from its transactions starting tomorrow, Saturday, April 15th at 7:05 PM.  Customers of our bank may be alerted to incorrect amounts when making purchases in Icelandic currency during that time, if payment processors do not update their settlements in a timely manner.”

Íslandsbanki warned customer to refrain from making certain purchases if they were uncertain of the charge. However, some Icelanders were unpleasantly surprised on their banking statements, as Morgunblaðið notes.

Among some of the charges include one Icelander who reportedly was charged 176,000 ISK [$1,290, €1,175] at Bæjarins Beztu, a popular hotdog stand, and an Icelander who was charged 642,600 ISK [$4,715, €4,293] for a grocery trip.

Regarding such charges, Íslandsbank stated: “If customers continue with their purchase and are charged the wrong amount, they should wait until the transaction has been settled and then contact the seller for a correction, or submit a refund request to Íslandsbanki.”

Online payment service Paypal likewise suspended ISK transactions between April 14 and 18.

Those experiencing problems with their banking are advised to contact their bank directly.

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