A glitch with a new Capital G credit card system has resulted in MasterCard customers from other banks getting charged two percent more than they should for purchases at Gibbons Company.

Capital G would not say how many consumers have been affected since the problem began in July but promised it would be fixed by the end of this month and everyone affected would be refunded.

The bank explained in a statement to The Royal Gazette that the issue was with Capital G's new point-of-sale card processing system, which was installed at Gibbons Company on July 6.

"Immediately following the launch, Gibbons Company identified an issue with MasterCard debit and credit card payments whereby non-Capital G cards were being charged a two percent foreign currency conversion fee," said the statement.

"The two percent charge does not appear at the time of purchase and is being added at the time of settlement by MasterCard.

"MasterCard is currently recognising the settlement of the purchase as a foreign currency purchase and charging the customer its standard published two percent fee for foreign currency conversion."

Capital G said Gibbons Company began recording each incident as soon as it realised there was a problem and that a solution had now been identified which would rectify things by November 30.

The statement said: "Capital G appreciates the support of Butterfield Bank during the last couple of months for immediately crediting customers the two percent charge as a result of the card processing error.

"Capital G Bank can also confirm following conversations with the Bank of Bermuda that some of its cardholders have been affected and in every case the two percent foreign currency fee credited to the customer's account."

It added: "Customers of Gibbons Company should remain confident that they will continue to receive quality merchandise at a fair value and feel confident in using cash, credit or cheques for making their purchases."

MasterCard customers who think they have been wrongly charged the two percent fee and have not been refunded by their bank should call 296-6969 with the amount and date of purchase and related charge.

A Bank of Bermuda spokeswoman said the matter was being investigated. Butterfield Bank deferred comment to Capital G.