The incidence of cyber frauds has been rising during the pandemic and senior citizens have been impacted most.
A few significant changes will be introduced from September 30 that will provide debit and credit card
users better protection against frauds by allowing them to exercise greater control over these instruments. Your bank might have already activated these risk-mitigation features. If not, it will do so soon.
According to Rajesh Mirjankar, managing director and chief executive officer (CEO), Infrasoft Technologies, a fintech digital solutions provider for the banking and financial sector, “These changes will empower customers and make their cards more secure.”
What’s new: These rules apply to existing cards, new ones and to those that have been renewed recently. Says Adhil Shetty, chief executive officer, BankBazaar: “When cards are issued, you will only be able to use them at points of sale (PoS) and at ATMs within India. You will have to manually enable online, international, and contactless transactions.” These facilities can be activated via mobile, internet banking, ATMs or bank branches. While all this might seem like a pointless burden, remember that these new features will enhance security of card transactions.
Use it or lose it: Existing cards that have never been used for online, contactless or international transactions will be disabled for such transactions. Says Sahil Arora, director, Paisabazaar.com: “For the rest of the cards, banks have been allowed to exercise their discretion on whether to disable them for such transactions based on their risk perception.” Cardholders who require the functionalities of online, contactless or international transactions can reactivate them through the mobile app, internet banking, by visiting branches and ATMs, or by contacting the customer care numbers.
Set limits: You will be able to set and modify transaction limits on your cards for all types of transactions, both domestic and international, including PoS, online transactions and ATM withdrawals. Says Mirjankar: “These limits can be within the one set overall by the issuer.”
Cardholders will have the option to switch on and off their debit and credit cards
for any facility, like ATM or online transaction. Imagine the peace of mind you will have when you can switch off the non-requisite facilities temporarily and set a limit for those that you use.
Take, for instance, the ability to switch off ATM, PoS and international transactions on your card, and set a limit on domestic online transactions. If the only thing you do these days is online grocery shopping, then there is no need to expose your entire Rs 3 lakh credit card
limit, or all the money in your bank account, to the risk of fraud.
Exercise greater control on cards
Download your bank’s app and follow the steps required for logging in
Go to the cards section. Some bank apps call it the ‘manage cards’
You will find two usage options: International and Domestic, choose one
Next, you can disable, set limit, and switch on/off the following options: ATM withdrawal, online transaction, and PoS
You can also set your own spending limits on your debit or credit card
Source: Bank websites
The incidence of cyber frauds has been rising during the pandemic and senior citizens have been impacted most. With these new tools at your command, even if you become a victim of cyber or ATM fraud, the damage will be zero or low if the usage has been switched off or the limit has been set low.