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PSA: GRABPAY’S NONSENSICAL FRAUD REPORTING POLICY




Aaron Wong
May 16, 2022
Last Updated: May 16, 2022
21

HIT BY A FRAUDULENT TRANSACTION ON YOUR GRABPAY CARD? FILING A CHARGEBACK CLAIM
MAY BE ANYTHING BUT STRAIGHTFORWARD.

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If you’ve been using your GrabPay Card on a fairly regular basis, it’s probably
only a matter of time before you get hit by a fraudulent transaction.



This is likely to be a mild annoyance more than anything else, particularly
since the GrabPay Card is a debit card, and unless you’re keeping a sizeable
balance in your GrabPay wallet (why?), the quantum of damage can’t be very high.

But even so, money is money, and you’ll want to file a chargeback to get
reimbursed. And here’s where things start to go awry…


MY EXPERIENCE DISPUTING A FRAUDULENT GRABPAY TRANSACTION

On 11 May, I received a transaction alert that a charge of S$5.96 had been made
on my GrabPay Card (I had a small balance in my GrabPay wallet because of a
refunded transaction). 



This was made to a merchant called CUBED FIT, which I’ve never heard of (do you
even lift bro). So naturally I blocked my card immediately and initiated the
chargeback process.

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Now, the very first question asked when filing a chargeback is whether you’ve
reached out to the merchant to resolve the issue. 



That obviously makes no sense in the case of a fraudulent transaction, but it’s
impossible to continue unless you tap “yes”.



So I just put “yes” and carried on. I filled out the usual details like the
merchant name, transaction date and amount (you’d think the app would be smart
enough to auto-populate these fields), and hit submit.

On 15 May I received a call from a Grab CSO, who cancelled my existing GrabPay
Card and waived the application fee for a new one. I asked about the chargeback
status, and was told that they were unable to open a chargeback claim until I
showed them proof that I had already contacted the merchant to try and resolve
the matter first. 

She pointed me to this term on Grab’s chargeback page. 

> Please note that you’ll need to provide supporting documents (i.e.
> screenshots) indicating you’ve reached out to the merchant regarding the
> refund. This will allow us to proceed with the chargeback process. 

Let’s just pause to think about this. 

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Asking the customer to contact the merchant makes sense in certain chargeback
situations. For example: 

 * The goods you received were different from the ones advertised
 * The goods you received were defective
 * The merchant charged your card for the wrong amount
 * The merchant charged your card twice for a given transaction
 * The merchant said they’d issue a refund but have yet to do so

In those cases, sure. There is a pre-existing relationship between the customer
and the merchant, and the customer should at least make an attempt to resolve
the matter with the merchant before bringing in the card issuer.

But in the case of a fraudulent transaction? I have no idea who the merchant is
in the first place (a cursory Google search shows no hits for a company called
Cubed Fit), so how am I supposed to even contact them?

And supposing I could, what am I expected to say? “Hi, I don’t know who you are,
but someone used my card for a fraudulent transaction with you.” To which
they’ll reply….what exactly?

It sounds silly spelling it out, but that’s exactly what Grab is asking
customers to do. If you have a fraudulent transaction on your GrabPay Card,
you’re expected to somehow contact the merchant and ask them to reverse it (good
luck when you don’t even know what you supposedly bought!) before Grab will
consider helping you out. 

I’ve had to dispute fraudulent charges on my bank-issued credit cards before,
and not once was I asked to contact the merchant. I’m wondering why it’s
different with Grab. 

So back to my call: I told the Grab CSO that what they were asking for didn’t
make any sense since this was a fraudulent transaction not made by me in the
first place. She kept insisting it was “policy”, but eventually agreed to
“escalate” the matter to the disputes team again.

Now, there’s always the possibility the CSO was misinformed, and this isn’t
Grab’s actual policy. But given the way the chargeback filing process is set up
in the app, how there’s no separate flow for fraudulent vs
non-fraudulent-but-disputed transactions, and how you can’t actually submit a
claim unless you state that you’ve reached out to the merchant already, I
wouldn’t be surprised if it is.

⚠️ Chargeback vs Dispute

Someone’s pointed out that a chargeback (legitimate transaction where
something’s gone wrong) is different from a dispute (illegitimate transaction),
and technically what we’re dealing with here is a dispute. 

That’s true, but Grab doesn’t distinguish between the two in its Help Centre
page, and includes fraudulent transactions under the chargeback category.


CONCLUSION

Mark this as unresolved for now, but if Grab continues to insist on this
requirement, I’m just going to have to eat the S$5.96. There’s simply no way to
do what they’re asking for. 

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It’s hard not to be cynical about the reasons behind Grab’s blanket application
of the “contact merchant first before raising chargeback” rule. Yes, it makes
sense in certain scenarios, but certainly not when dealing with a fraudulent
transaction. If anything, it feels like a case of trying to tai chi the
responsibility to the customer.

Long story short: keep as small a balance as possible in your GrabPay wallet,
and lock your card whenever it’s not in use. And if you do get hit by a
fraudulent transaction, be prepared for some surreal correspondence with
customer service. 

Have you had a fraudulent transaction on your GrabPay Card? How was it resolved?


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Aaron Wong
Aaron founded The Milelion to help people travel better for less and impress
chiobu. He was 50% successful.

Previous articleThe Long Way to Singapore: Bahrain Trip Planning
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21 Comments

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grab user


1 day ago


grab team is basically unrealiable, took two days to reply with an email. i had
the same encouter.

Reply


Knowyourcoststructure?


1 day ago


Long way to go before they can be a digital bank or displace credit cards, and
then perhaps they will start an equiv transaction fee or else how to fund fraud
management work

Reply


K C


1 day ago


surreal (and illogical)

Reply


Not impressed


1 day ago


Many merchants use a different name instead of their brand name to process
transactions. Asking customers to contact the merchant to resolve fraudulent
transactions sounds absurd.

Reply


To grab or not to grab


1 day ago


Probably best to limit grab wallet usage to QR code transactions and not
anything else locally. No good reason to use their cards overseas as there are
multi currency cards like revolut with good rates.

Reply



Aaron Wong
Author


Reply to  To grab or not to grab
1 day ago


grabpay card can come in useful for making AXS transactions, though. Klook
sometimes offers promo codes for paying with grabpay card, so that’s another use
case.

Reply


unknown


1 day ago


maybe better to get MAS involved ?

Reply


Grab is Shady


1 day ago


Grab is a shady company and things have changed since they became unchallenged
in the market. They are no longer as customer-centric. Complaints hotline for
customers is removed. Even if you did call in to a CSO for complaints they’ll
tell you they don’t take complaints and you just gotta e-mail in. Bad ratings
from customers are removed. Do you notice almost all drivers are 5 Stars now?
It’s because drivers can challenge poor ratings, except for safety issues, most
poor ratings are removed. Also in my experience this is the risk of using cards
from Fintech, non-traditional FIs. Customer… Read more »

Reply


Rick


1 day ago


I’ve had the same situation when they issued the grab card first time. I bought
a pair of Adidas shorts but I bought the wrong size so went back to then but
Adidas couldn’t refund because it was a purely digital card. Grab kept making me
go back to Adidas store and Cso for an explanation as they believe their digital
card accepts refunds. In the end Grab ate their own nonsense and refunded me
their points equivalent to the shorts price after admitting their card had
problems.

Reply


Mark


23 hours ago


If they are that brain-dead, you really have to wonder about how robust and
resilient the rest of their systems and process are. I bet you this insanity is
the tip-of-an-iceberg. As you say, don’t keep anything in your wallet, and keep
your card locked at all times. Unlock only for those few seconds when a
transaction you are performing is going through.

Reply


David


23 hours ago


Escalate this to MAS, they are quite happy to step in when it comes to things
like this.

Reply


Alian


23 hours ago


I too had a hard time and it was when I was in Dubai booking a partner transport
which in the end I did not end up taking. Their solution was to simply delete
the evidence and remove all records in my wallet. Lucky I had screenshots of my
grab wallet which is now missing. I’m taking this to MAS. From an accounts and
audit point of view it’s most concerning. How can one trust a company who’s
solution is to delete records and then says it never happened. While I dislike
classic financial institutions for their dinosaur methods modern… Read more »

Reply


Fellow Grab user


22 hours ago


Suggest you share the screenshots of convos and evidence etc with MAS. You would
be doing everyone a public service. Grab is nowhere near a bank and they should
not be issuing cards with such poor service. Previously they blocked my account
with no sympathy (stupidly logged in to mum’s account on own phone to help with
Points redemptions) and there was no way to contact them either, i.e. they stole
all my remaining money and points. Had to use family member’s account to send a
message to them, still ongoing. MAS needs to at least be aware of the… Read more
»

Reply


Isaac


22 hours ago


I’ve said it before and I’ll say it again: don’t use these newfangled payment
services companies, whether Grab or Amaze or whatever. Everything looks fine
until these kinds of problems happen. One single fraudulent transaction means
the cost of your miles suddenly becomes a lot more expensive, or you lost your
cashback, defeating the point of using these services in the first place. This
means you have no choice but to go through these companies’ garbage recovery
processes. But is it worth your time and mental load? If you value your time at
say, $100 an hour, there is no… Read more »

Reply



dkdk


Reply to  Isaac
20 hours ago


Most of the people who take advantage of grab card aren’t capable of generating
100sgd an hour i think

For those who could, they wont even pay any attention to grab.

Reply


Kevin


16 hours ago


Wonder how reliable would their digital banking be ?

Reply


Gud6


14 hours ago


I had a fraud transaction on 8 May too. I went through the ‘report issue’ route
and selected unrecognised transaction. Grab needed answers to the following
questions: 1)Did you get a chance to speak to contact the merchant – Letting
them know about the unauthorised charges on your GrabPay MasterCard? 2)Did you
use your card to make this transaction? 3)Did you get notified when the
transaction was posted in your account / card e.g 4 digit one time passcode
(OTP) from Grab? 4)If yes, did you share the 4 digit one time code with anyone
else? 5)Was the card and… Read more »

Reply


K W


13 hours ago


Same encounter on 14th May with grab card. 100+ sgd at stake

Reply


MINGZ


10 hours ago


Grab is increasingly unreliable and desperate to milk their users. Any customer
service, if there’s any, is impersonal, templated and absolutely frustrating.
MAS should know about this, before they they go full fledged digital bank. Would
be utter chaos, seeing how they are so rubbish now.

Reply


Sktan


10 hours ago


You should make a police report against grabpay and cubefit for making
unauthorised transaction.

Reply


Uk_Ship


1 hour ago


Grab as a whole has zero customer service. 2 recent issues- I ordered a grab
express delivery which took 90 minutes from pick up to drop off- I could see the
driver on my screen stopped at a location (housing block) with my item. When he
arrived he wouldn’t explain any reason (lunch? Nap?) I complained to grab that I
had paid $30 for an express item and asked for a refund- they gave me $3.
Another time had a beach pick up, over one week later had a call from grab
asking me to pay $20 to vacuum the… Read more »

Reply







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