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

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Many of us use our debit and/or credit cards to make payments, otherwise directly we add the debit or credit number to make a UPI payment or to make direct payments. With the increase in the number of people using their card to make payments, so have cases of fraud through 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 issuers to send out alerts for all card transactions so cardholders know what is happening with their cards.

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

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

You should disable various features of the credit/debit card i.e. online transactions for domestic and international transactions in case you will not use the card for a while and enable it only when using card is required.

Also, Near Field Communication (NFC) should be disabled if the card is not to be used.

Before entering the PIN at a point of sale (POS) site or when using the card on an NFC reader, you should carefully check the amount displayed on the screen of the POS machine and the NFC reader.

Never let the merchant take the card out of your sight for swiping it during a transaction.

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

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Important words to understand before making payment

These are definitions and explanations provided in the RBI booklet;

Debit card: A card which makes it possible to pay for products or services by direct debit from the funds available on a bank account of the holder of the card.

Credit card: A card that allows payment for goods or services using 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 must not be shared with anyone else. The string of numbers is printed on the card.

CVV: represents the verification value of the card. This is a 3-digit number printed on the card that is required to complete most online transactions. This information is confidential and should NEVER be shared with anyone.

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

FAQ according to RBI

1) How are card transactions protected against fraudulent use?

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 AFA requirement is not mandatory for transactions where an outflow of currency is contemplated. Likewise, in the case of CP transactions (except ATM transactions) using NFC contactless technology, transactions with a maximum value of 2,000? per transaction can be made without AFA requirement, subject to compliance with EMV standards.

2) What are the responsibilities of a card issuer in the event of fraudulent use of a card by an unauthorized person?

In case of CNP transactions, RBI has mandated the provision of AFA for domestic transactions. If a transaction took place without AFA and the client complained that the transaction was not carried out by him, the issuing bank will refund the loss to the client without hesitation. In addition, a customer’s liability for an unauthorized electronic transaction is limited in accordance with the provisions of RBI.

3) What are the different methods of using a card on a PoS terminal?

Answer: A card can be swiped (magnetic stripe card), dipped (chip card) or tapped (contactless near field communication {NFC} card) at a point-of-sale terminal.

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