Debit Card | Credit Card : How to protect your debit, credit card from fraudsters


Many of us use our debit and/or credit cards to make payments, if not directly we add the debit or credit number to make a UPI payment or to make direct payments. With the rise in the number of people using their cards to make payments, so have the cases of frauds via this route.

The Reserve Bank of India (RBI) has taken a number of steps to ensure that the card payment environment is safe and secure. The RBI has ordered that issuers send alerts for all card transactions so that cardholders are aware of what is going on with their cards.

It is recommended that cardholders sign up for SMS/email alerts, says RBI.

According to RBI’s booklet “ BEWare”, here are the precautions to be taken when using debit or credit cards.

You should deactivate various features of credit / debit card, viz., online transactions both for domestic and international transactions, in case you are not going to use the card for a while and activate the same only when the card usage is required.

Similarly, Near Field Communication (NFC) feature should be deactivated, if the card is not to be used.

Before entering PIN at any Point of Sale (POS) site or while using the card at an NFC reader, you must carefully check the amount displayed on the POS machine screen and NFC reader.

Never let the merchant take the card away from your sight for swiping while making a transaction.

Cover the keypad with your other hand while entering the PIN at a POS site / ATM.

I
mportant words to understand before make payment

These are definitions and explanation provided in the RBI booklet;

Debit card: A card that allows paying for products or services by deduction of available funds in a bank account of the cardholder.

Credit card: A card that allows paying for products or services by availing unsecured/secured credit from a financial institution.

Card number: The number assigned by a credit card association or card issuing bank to a card. This information must be provided to a merchant by a customer in order to make a credit card payment but should not be shared with anyone else. The string of digits is printed on the card.

CVV: Stands for Card Verification Value. This is a 3-digit number printed on the card which is mandatory for completing most online transactions. These details are confidential and must NEVER be shared with anyone

Credit limit: The term refers to the maximum amount of credit a financial institution extends to a customer. A lending institution extends a credit limit on a credit card based on the analysis of the information given by the credit-seeking applicant. The credit limit can affect the customer’s credit scores and their ability to obtain credit in the future.

FAQs According to RBI

1) How are the transactions carried out through cards protected against fraudulent usage?

All CP and CNP transactions on cards issued in India are secured with AFA. This AFA can be in any form and few commonly used forms are PIN, dynamic one-time password (OTP), static code, etc. The requirement of AFA is not mandatory for transactions where outflow of foreign exchange is contemplated. Similarly, in case of CP transactions (except ATM transactions) using NFC contactless technology, transactions for a maximum value of ?2,000/- per transaction are allowed to be undertaken without AFA requirement, subject to adherence to EMV standards.

2) What are the liabilities of a card issuer in case of fraudulent use of a card by an unauthorised person?

In case of CNP transactions, RBI has mandated providing AFA for domestic transactions. If a transaction has taken place without AFA and the customer has complained that the transaction is not effected by her / him, the issuer bank shall reimburse the loss to the customer without demur. Further, liability of a customer in case of an unauthorised electronic transaction is limited as per the provisions of RBI.

3) What are various methods of using a card at a PoS terminal?

Ans: A card can be swiped (Magnetic-Stripe card), dipped (Chip based card) or tapped (Contactless Near Field Communication {NFC} Card) at a PoS terminal.



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