Skip to main content

Credit Card: Card Protection At Low Cost, Users Will Benefit

One safety rule many international travellers follow is blocking and destroying their credit cards after a trip. Judicious travellers know that fraudsters can easily capture the details stored on a card's magnetic strip and misuse it by making a new one.

HDFC Bank, Citibank and Axis Bank have already begun upgrading their customers to EMV cards. Others like Deutsche Bank will soon introduce the feature.

HDFC Bank have started providing EMV cards to our platinum card customers and others who travel abroad. This has proven to be more secure than earlier technology.

There are a number of other measures that regulator and card companies are using to protect cards against fraud or to free cardholders of liabilities in case of misuse.

Card Protection Plan (CPP): This is the most popular plan that card companies have resorted to. An independent agency sells this plan through all private and some government issuers in the country. CPP covers customers for liability arising in case of loss or theft of a card.

There are two plans that cover liability, up to `50,000 and `1lakh. It covers frauds that occur seven days prior to the customer blocking the card. There is no cap on the number of cards a person can register under a single CPP. However, there is a cap on how much cover a single card can get, in case of loss. In the classic plan, the sum insured of 50,000, the cover is on each card. In the premium plan, the sum insured is `1lakh and the cap on each card is 40,000. The insurance does not cover the card holder for online misuse or skimming of cards.

Tracking spending patterns: It card companies are studying the customer's usage pattern. Any deviation in this pattern and the company gets in touch with the customer to verify if the transaction was authentic. For instance, when the accounts of card holders, who usually avoid using their credit card internationally suddenly show such transactions, the issuers immediately call up the customer. The company even takes pre-emptive action in some cases.

Built-in insurance: Many issuers provide cardholders with insurance against loss of cards. Prominently, this feature is available for top-end customers like platinum card users. The card company ties up with an insurance company and pays a premium on behalf of the customer to cover against misuse due to loss or theft of card.

But both the cover period (prior to reporting loss of the card) and the cover amount could differ depending on the card company.

One needs to check with the issuer on the areas they would provide cover for. While some issuers cover the customer for any liability arising out of skimming, others may not cover online frauds. One should also know the amount the insurer will cover in case of such frauds.

Internet transactions: According to a Reserve Bank of India mandate, all card issuers have introduced a second-level authentication for credit cards. When a person uses his card for an internet transaction, he needs to enter a password for every transaction made on the net, after punching the card details.

To further reduce scope of fraud, some issuers have started sending out text message alerts to customers whenever there is a request to change the password.

Phone transactions: Next year on, all card companies will provide users a PIN for any transaction done on phone. To pay mobile phone bills or book airline tickets on a credit card, the customer just needs to punch the

Tool Feature

EMV Reduces skimming fraud

IVR PIN Reduce misuse for transactions done through phones

Behavioural patterns Card blocked in case of deviations from cardholder's usual spending pattern.

VBV/MCSC Second layer of security for internet transactions.

CPP *Covers misuse of card for the seven days prior to card being blocked.

Built- in insurance **Cover for losses due to theft, loss of card, skimming or misuse between 12-48 hours prior to the card being blocked.

Popular posts from this blog

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now