TSB delays switch from Visa to Mastercard - FT

TSB delays switch from Visa to Mastercard - FT

TSB's disastrous IT migration in April continues to have repercussions, with the British bank now postponing plans to move all of its customers from Visa to Mastercard debit cards, according to the Financial Times.

In a coup for Mastercard, last year TSB decided to ditch Visa, which dominates the UK debit card market, inking a seven year deal with its rival.

Customers were slated to be switched over in a big bang migration this autumn but this has now been delayed until next year, says the FT, citing sources.

The decision to hold off on a major project comes after the notoriously botched migration to a new IT system in April, which locked customers out of online and mobile services for over a month.

For the first six months of the year, TSB recognised additional post-migration costs of £176.4 million and suffered huge reputational damage.

The debit card delay will probably also cost TSB, a source close to Mastercard tells the FT, although it reduces the risk of another IT failure.

Last week TSB posted a message on its website warning that about 40,000 customers who are due to receive replacement debit card at the end of this month could experience delays.

Said the bank: "We’re sorry, there’s been a delay in sending out new debit cards that are due to expire at the end of August.

"We’re working hard to get them delivered by August 25, and the latest by August 31. Customers can continue to use their cards until September 1."

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