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

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...

ING Mutual Fund - Invest Online

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     Information Updated As On December 30, 2013   Name of the Mutual Fund ING Mutual Fund Date of set up of Mutual Fund February 11, 1999 Name(s) of Sponsor ING Group Name of Trustee Company ING Mutual Fund Name of Trustees Mr. Chetan Mehta - Associate Trustee Mr. Haresh M Jagtiani - Independent Trustee Mr. Sunil Gulati - Independant Trustee Mr. Surinder Mohan Pathania - Independent Trustee ...

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...
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