Landsbankinn credit card payment issues resolved

Landsbankinn has resolved a technical issue that disrupted credit card payments for its customers. The problem, which occurred on July 2, prevented payments made by customers from being credited to their accounts.

Kristín Gunnarsdóttir, Landsbankinn's information officer, explained that the failure was due to payments not reaching the payment processor, Rapyd. Many customers typically set up automatic direct debits for their credit card payments on the second of the month. However, these transactions failed to process correctly.

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What actually happened is that the deposit did not go through.

"What actually happened is that the deposit did not go through," Gunnarsdóttir stated. "Whether individuals had direct debit set up for the card or made a manual payment, it did not reach Rapyd, and therefore the transaction on the card was not completed."

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Whether individuals had direct debit set up for the card or made a manual payment, it did not reach Rapyd, and therefore the transaction on the card was not completed.

This failure caused the accounts to appear as if they were unpaid, leading customers to believe they were in default, even though the issue was purely technical. "Then it appears on the card as if the customer has an unpaid bill, and when that happens, the card functions as if the customer is in default, although it has nothing to do with default, the transaction simply did not complete technically," Gunnarsdóttir added.

Landsbankinn worked diligently to fix the problem, and Gunnarsdóttir confirmed that the system is now back to normal operation.

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Then it appears on the card as if the customer has an unpaid bill, and when that happens, the card functions as if the customer is in default, although it has nothing to do with default, the transaction simply did not complete technically.