MONEY MATTERS

It is a very sad condition for card holders, who lose it. Although many banks deactivate credit cards as soon as the card holder calls in to say it is stolen or lost, others require a written complaint, along with a police FIR – and that too during office hours. In the meantime, a thief goes on using your card. Some banks even make card holders liable for purchases made with a lost card for up to 30 days after the loss is reported.

Even when banks are certain a fraud has been committed, they often train their sights on the hapless card holder. Credit card fraud could be reduced substantially by giving holders a secret personal identification number that they have to punch in before every transaction. Credit cards with PINs are available in many countries.

To reduce fraud, merchants should be made to realize that if they are not careful in checking cards and following procedure, they could lose money. Merchants are careful when that happens. A couple of banks have voluntarily limited their card holders’ liability. However, legislation should make both shops and card- issuing banks more accountable, and give a fair deal to the card holder.

Filed under: Uncategorized by SAJ