If you delay informing the bank, you may end up with a huge balance. Unless, of course, you have covered the card against fraud
WHAT’S the first thing you should do if you lose your credit card? Just call up the bank’s 24 hour call centre and deactivate the card. This should take precedence even over your attempt to track your wallet in the lost trail. This is because very few banks in India offer protection against fraudulent use of credit cards. Of course, you can breathe a little easy if your bank insures your lost card from any misuse.
Standard Chartered Bank, for instance, has tied up with Tata AIG General Insurance Company to launch the ‘Plus Extended Protection Plan’ last week. This product, which has to be bought separately, will cover the card customers from any possible fraudulent use of the cards prior to reporting the loss. “We receive several lost card reports in a month. The product will ensure protection to our customers against any fraudulent use.
The insurance cover will reimburse (up to Rs 50,000) per fraudulent transaction up to 12 hours prior to the customer reporting the loss to the bank. Also, the bank has extended this cover to all debit and credit cards. Similarly, even ABN Amro Bank offers this cover with a total coverage of Rs 2,000-Rs 5,000 at a monthly premium of Rs 100. In the case of SBI Cards, the credit card company caps the liability to a maximum of Rs 1,000 for non-gold cards once it receives a proper notification of the loss by the customer. The gold card customers enjoy zero liability once they notify the bank authorities.
Among the other leading credit card players, Citibank is still mulling the idea of offering a similar protection. ICICI Bank, however, doesn’t offer any such cover. This cover is not very useful. We send mobile alerts whenever customers swipe in excess of Rs 2,000. That would help them keep a tab on all cards.
HDFC Bank offers an insurance cover, which covers the customer from fraudulent transactions for up to 24 hours. Moreover, the cover comes free of cost. But you have to also file an FIR to hedge against these frauds. For claiming insurance on any fraudulent transaction, you have to file an FIR with the police. Then you have to furnish the FIR along with credit card details to file a claim. Once the claim gets validated, it compensates for the fraudulent transaction.
So, if the credit card company doesn’t offer any protection, then it holds the customer liable for any fraudulent transaction. You have to report the loss of the card immediately if you want to play safe. Once the customer communicates to the bank in telephone/writing the customer continues to enjoy zero liability on their lost cards. This means you don’t have pay a single penny if your credit card is stolen and has been subjected to fraudulent practices.
In the US, the maximum liability on the customer is capped at $50 per credit card. As the days pass by, this liability increases to $100 for the second day and $500 for the third day. If you don’t file a complaint with the bank for more than 60 days, then the customer is liable for every fraudulent transaction. However, the possibility of the customer being unaware of the loss for 2 months is very less, say experts.
This is an optional cover. But if your bank offers the cover to protect the lost card against fraudulent use, it is definitely not a bad idea. You will be spending a monthly amount of Rs 100 for saving a credit limit of may be a lakh from being misused. But most big banks are yet to offer this insurance cover. If it still pops out of the wallet, make a quick call and deactivate it. Follow the call with a written complaint and post it to the credit card company.
WHAT’S the first thing you should do if you lose your credit card? Just call up the bank’s 24 hour call centre and deactivate the card. This should take precedence even over your attempt to track your wallet in the lost trail. This is because very few banks in India offer protection against fraudulent use of credit cards. Of course, you can breathe a little easy if your bank insures your lost card from any misuse.
Standard Chartered Bank, for instance, has tied up with Tata AIG General Insurance Company to launch the ‘Plus Extended Protection Plan’ last week. This product, which has to be bought separately, will cover the card customers from any possible fraudulent use of the cards prior to reporting the loss. “We receive several lost card reports in a month. The product will ensure protection to our customers against any fraudulent use.
The insurance cover will reimburse (up to Rs 50,000) per fraudulent transaction up to 12 hours prior to the customer reporting the loss to the bank. Also, the bank has extended this cover to all debit and credit cards. Similarly, even ABN Amro Bank offers this cover with a total coverage of Rs 2,000-Rs 5,000 at a monthly premium of Rs 100. In the case of SBI Cards, the credit card company caps the liability to a maximum of Rs 1,000 for non-gold cards once it receives a proper notification of the loss by the customer. The gold card customers enjoy zero liability once they notify the bank authorities.
Among the other leading credit card players, Citibank is still mulling the idea of offering a similar protection. ICICI Bank, however, doesn’t offer any such cover. This cover is not very useful. We send mobile alerts whenever customers swipe in excess of Rs 2,000. That would help them keep a tab on all cards.
HDFC Bank offers an insurance cover, which covers the customer from fraudulent transactions for up to 24 hours. Moreover, the cover comes free of cost. But you have to also file an FIR to hedge against these frauds. For claiming insurance on any fraudulent transaction, you have to file an FIR with the police. Then you have to furnish the FIR along with credit card details to file a claim. Once the claim gets validated, it compensates for the fraudulent transaction.
So, if the credit card company doesn’t offer any protection, then it holds the customer liable for any fraudulent transaction. You have to report the loss of the card immediately if you want to play safe. Once the customer communicates to the bank in telephone/writing the customer continues to enjoy zero liability on their lost cards. This means you don’t have pay a single penny if your credit card is stolen and has been subjected to fraudulent practices.
In the US, the maximum liability on the customer is capped at $50 per credit card. As the days pass by, this liability increases to $100 for the second day and $500 for the third day. If you don’t file a complaint with the bank for more than 60 days, then the customer is liable for every fraudulent transaction. However, the possibility of the customer being unaware of the loss for 2 months is very less, say experts.
This is an optional cover. But if your bank offers the cover to protect the lost card against fraudulent use, it is definitely not a bad idea. You will be spending a monthly amount of Rs 100 for saving a credit limit of may be a lakh from being misused. But most big banks are yet to offer this insurance cover. If it still pops out of the wallet, make a quick call and deactivate it. Follow the call with a written complaint and post it to the credit card company.
