The New Zealand Bankers' Association says credit and debit card holders should be reassured by the work done by banks and card schemes to protect them from fraud on their card accounts.

Banks are currently re-issuing credit and scheme debit cards used at the Downtown Carpark in Auckland, after it was identified as a common point of use for attempts at fraud on some card accounts. The merchant has also removed the automated credit card facilities at the carpark as a precaution and pending the outcome of an investigation.

An investigation is also underway into an ATM 'skimming' incident.

NZBA Chief Executive Sarah Mehrtens says banks work closely together on fraud and security issues, sharing information through the forum of the NZBA.

"Under the Code of Banking Practice, cardholders should feel reassured that they will not be held liable for fraud of the nature that has occurred in this instance," Sarah Mehrtens said.

"Banks are taking appropriate action, including the reissuing of cards which effectively shuts down the opportunity for misuse of information. While there is inconvenience, most cardholders understand that this is a necessary precaution.

"Many banks also have the ability to intercept fraud before it hits cardholder accounts."

"As always, cardholders are encouraged to monitor their accounts regularly and notify their bank immediately of any unusual account activity," Sarah Mehrtens said.