Card giant Visa has been questioned by the Treasury Committee following a hardware failure on 1 June, which left consumers across Europe unable to make debit and credit card payments.
Visa issued a statement on Saturday evening to say that the technical issue had been resolved and that its network is “working normally” for its customers.
However, chair of the cross-party group of MPs Nicky Morgan MP has written to Visa’s chief executive officer (Europe) Charlotte Hogg, demanding answers over what led to the failure.
Other questions put to Visa include how many people were affected, whether cardholders or merchants will be entitled to compensation, and what steps Visa will take to ensure a similar system failure does not happen again.
Visa would not tell Moneywise how many customers were affected by the outage or confirm whether compensation would be due when we asked yesterday.
Mrs Morgan has asked Ms Hogg to respond by 5pm on 15 June. She comments: “A third of all spending in the UK is processed by Visa. It’s deeply worrying, therefore, that such a vital part of the country’s payment infrastructure can fail so catastrophically.
“The consequences were sudden and severe. Many consumers and businesses were left stranded on Friday, unable to make or accept payments, with chaos reported in shops.
“The committee has asked Ms Hogg to answer its questions on the disruption. If it is not satisfied with the response, the committee may consider asking Ms Hogg to provide oral evidence.”