If you are a proud owner of a Credit Card, there is a certain responsibility on you to ensure that you use the Credit Card securely. I have mapped some precautionary steps which can be taken for the 4 scenarios mentioned above.
Scenario 1: Card Details Compromised at Petrol Pump or Restaurant or similar vendor outlet
As soon as you receive your Credit Card, scratch out the CVV number on the reverse of the Credit Card and commit it to memory or store it on your Mobile Phone. The objective is that nobody should get hold of the Card Number and the CVV number together. Scratch it out real nice so that it is no longer visible (use a swiss knife, rather than using a pen or Pencil as the CVV number cannot be easily scratched out)
Scenario 2: Lost your Card and did not realize it, someone else took the physical card and swiped it
Always be aware that, if you are an irresponsible user of Credit Cards, you can lose money upto the Credit Limit of your Credit Card. If my Card with a Credit Limit of Rs.300,000 gets lost, I risk losing upto Rs.300,000
So if your monthly Credit Card Bill is Rs.25,000, have a Credit Card with a limit of Rs.30,000, or have 2 Credit Cards each with a Credit Limit of Rs.30,000 and keep the other one at home in a lock and safe to be used if you require additional limits. A high Credit Limit is like a Damocles Sword hanging over your head
There is a card protection insurance which is offered by some banks / credit card issuing companies, where if your card is stolen and used, the insurance company pays for the losses. The premium is usually less than 1% of your Credit Limit every month. If you have a Credit Limit of more than Rs.50,000 please sign up for this and pay that Rs.300 every month and then you do not need to worry about losing your card
But before signing up for this product, do check the details as all banks sell insurance and you need to be aware that the risk is covered. These days call centre executives who sell these products have no clue about what they are selling, so be careful. Feel free to write to me for clarifications on Ask.Pranav@Gmail.Com for clarifications if you need any
Scenario 3: Disclosing CVV Numbers on the Phone
I can only ask you not to do this. I am also planning to write to Yatra and see what they say about asking for CVV numbers on the phone. Will write a separate blog post on that. However I intend to run a campaign to highlight such merchants and write to VISA if possible
Scenario 4: Credit Card Details Compromised outside the country
Every time you travel abroad, it is advisable to get a PIN based Prepaid Debit Card rather than use a Credit Card. If you have to use a Credit Cards, then it is advisable to block the old card and get a new one issued on your return to prevent possible fraud. However these are rare occurrences and you can only blame your luck if you are trapped in a scenario like this. However, if you are travelling to some South East Asian countries, it is advisable to reissue your Credit Card on your return.
Scenario 1: Card Details Compromised at Petrol Pump or Restaurant or similar vendor outlet
As soon as you receive your Credit Card, scratch out the CVV number on the reverse of the Credit Card and commit it to memory or store it on your Mobile Phone. The objective is that nobody should get hold of the Card Number and the CVV number together. Scratch it out real nice so that it is no longer visible (use a swiss knife, rather than using a pen or Pencil as the CVV number cannot be easily scratched out)
Scenario 2: Lost your Card and did not realize it, someone else took the physical card and swiped it
Always be aware that, if you are an irresponsible user of Credit Cards, you can lose money upto the Credit Limit of your Credit Card. If my Card with a Credit Limit of Rs.300,000 gets lost, I risk losing upto Rs.300,000
So if your monthly Credit Card Bill is Rs.25,000, have a Credit Card with a limit of Rs.30,000, or have 2 Credit Cards each with a Credit Limit of Rs.30,000 and keep the other one at home in a lock and safe to be used if you require additional limits. A high Credit Limit is like a Damocles Sword hanging over your head
There is a card protection insurance which is offered by some banks / credit card issuing companies, where if your card is stolen and used, the insurance company pays for the losses. The premium is usually less than 1% of your Credit Limit every month. If you have a Credit Limit of more than Rs.50,000 please sign up for this and pay that Rs.300 every month and then you do not need to worry about losing your card
But before signing up for this product, do check the details as all banks sell insurance and you need to be aware that the risk is covered. These days call centre executives who sell these products have no clue about what they are selling, so be careful. Feel free to write to me for clarifications on Ask.Pranav@Gmail.Com for clarifications if you need any
Scenario 3: Disclosing CVV Numbers on the Phone
I can only ask you not to do this. I am also planning to write to Yatra and see what they say about asking for CVV numbers on the phone. Will write a separate blog post on that. However I intend to run a campaign to highlight such merchants and write to VISA if possible
Scenario 4: Credit Card Details Compromised outside the country
Every time you travel abroad, it is advisable to get a PIN based Prepaid Debit Card rather than use a Credit Card. If you have to use a Credit Cards, then it is advisable to block the old card and get a new one issued on your return to prevent possible fraud. However these are rare occurrences and you can only blame your luck if you are trapped in a scenario like this. However, if you are travelling to some South East Asian countries, it is advisable to reissue your Credit Card on your return.
1 comment:
great post about credit card frauds.
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