NS blocks temporary digital bank cards due to fraud by fare dodgers
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Dutch rail company NS has blocked the digital bank cards of payment services Revolut, Paysafe and Vivid, as several people use the contactless system to skip out on paying for their journeys.
Digital cards used to scam Dutch public transport
As of July 1, you can no longer pay for your train ride with a digital card from online bank Revolut or other payment services like Paysafe and Vivid. NS has blocked these payment services due to “serious fraud”. Paysafe has also been blocked on all other public transport in the Netherlands.
The apps of these payment services allow users to create a temporary digital card, which rail passengers can use to check in and out. However, fare dodgers delete the card after their trips, before the travel expenses can be deducted. OVpay, the contactless system that allows travellers to check in and out with a debit card or virtual card on a mobile phone, is designed so that travel expenses are all debited together at the end of the day rather than immediately at each check-in or check-out.
Blocking digital cards necessary, says NS
Mostly rail transport is affected, and it is not a major problem for other public transport companies. While NS won’t comment on the impact of the abuse by fraudsters, the rail company did confirm that they are dealing with “serious abuse”. "If it wasn't necessary, we would rather not have done it," a spokesperson told NOS, especially as the move will likely affect passengers who use digital cards correctly.
Translink, the company that manages OVpay, and NS have known about fraudsters using this method for years, but this is the first time payment services have been blocked. Revolut, Paysafe and Vivid were notified in May that their digital cards would be blocked unless they took action to address the problem.
Revolut is said to be exploring its legal options to go against the blockade, while German payment service Vivid is working on a “technical solution” which it plans to implement by September. However, it will still be up to Translink whether the block will be lifted. Paysafe has not responded to the blockade.