Tesco share price: Grocer apologises for payment glitch

Delays in processing payments push customers into the red

Tesco share price: Grocer apologises for payment glitch

Tesco (LON:TSCO) has apologised to customers for delays in processing payments at 300 of its Express stores, The Guardian has revealed. The blue-chip retailer took up to three months to process hundreds of credit and debit card payments, causing some shoppers to go into the red. 

Tesco’s share price has fallen marginally lower in London in today’s session, having given up 0.30 percent to 202.50p as of 14:47 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.57 percent higher at 7,208.90 points.

Tesco apologises for glitch

The Guardian reported that Tesco had disclosed that 300 of its 1,700 Express convenience stores had been affected by a glitch in its payments system since the end of November. The error was first spotted and reported by MoneySavingExpert.com, which was told by a number of customers that the delayed transactions had pushed them beyond their agreed overdraft limits since they were not expecting the money to be debited. Tesco has agreed to refund any bank charges incurred as a result.

“As soon as we identified this issue, we contacted as many affected customers as possible and have now processed all incomplete transactions,” a spokesperson for the supermarket said, as quoted by the Guardian. “The issue has now been resolved and we are sorry for any inconvenience this may have caused.”

Analysts on blue-chip grocer

Goldman Sachs reaffirmed its ‘buy’ rating on Tesco this week, without specifying a price target on the shares. According to MarketBeat, Britain’s biggest grocer currently has a consensus ‘hold’ rating and an average price target of 201.90p.

Analysts meanwhile have sounded a note of caution on the group’s reported plans to create a low-cost store, warning that it could prove as disastrous as rival Sainsbury’s (LON:SBRY) attempt to revive Netto.

As of 15:00 GMT, Wednesday, 14 February, Tesco PLC share price is 202.70p.

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