More than seven MILLION people had their debit card rejected last year

More than seven million people were unable to use their debit card due to IT glitches last year, according to research by consumer experts.

Banks are encouraging customers to switch to plastic cards and smartphone apps rather than real money because it saves them a fortune in handling, security and transport costs.

But a survey by consumer groups including Which? and the Federation for Small Businesses of more than 2,000 customers found one in seven were left unable to use their card due to an outage in the last year – with half saying they could not pay for goods and services as a result.

Banks are encouraging customers to switch to plastic cards and smartphone apps rather than real money because it saves them a fortune in handling, security and transport costs (stock image)

Meanwhile one in 20 of those surveyed experienced the problem more than once. 

And one in ten of those unable to use their card said they had suffered a financial penalty as a result or said their credit score was damaged. 

A Which? spokesman said: ‘One year on from a Visa IT failure that sparked a Europe-wide payments meltdown, the findings demonstrate the vulnerability of digital banking and reinforce the need for traditional payment methods like cash to be protected.’

It comes after Chancellor Philip Hammond responded to concerns that Britain is ‘sleepwalking towards a cashless society’ by setting up a Treasury-led group that will guarantee access to cash.