Using a credit card has become a habit for many, as it’s easy to make several transactions using a single card rather than carrying cash. However, with the ease, there is also a risk just in case you misplace your card.
What’s important is to know the steps that you must take just in case the card is lost. Here’s what you can do:
Inform the issuer immediately
Time is of importance in the scenario of a lost card — someone in possession of the card could potentially make multiple transactions within minutes and you could lose lakhs of rupees. Hence, the priority should be to inform the bank or credit card issuer as soon as possible.
It’s essential to keep the phone number of the card issuer handy. These days, you can also report it from the apps of the respective banks.
Inform the police
It is advisable to file a first information report (FIR) at the nearest police station. You can also keep a copy of the FIR to produce in case the bank demands it. It can also protect you just in case any serious fraud takes place using the card.
Block the card
You can also block the credit card using the app. It takes minutes to do that and the process is quick in most cases. You can block the card temporarily or permanently based on the situation.
Usually, credit cards have a zero-liability clause that covers fraudulent transactions incurred on the card from the date and time of reporting the loss of the card to the bank.
Most banks offer zero lost card liability which means any transaction carried out after reporting the loss of the credit card to the bank would be covered by the bank under insurance. If any unauthorised transaction takes place after reporting of the loss of card, you should inform the bank with a copy of the credit card statement.
Request for a new card
Even if you find the card, it’s advisable to request a new card from the issuer. The issuer might charge some amount for the new card, but it is best to be secure.
Other things to note:
The Card Protection Plan (CPP) service is offered by several banks and insurance companies. The scheme covers your credit and debit cards for any fraud, theft, skimming, counterfeiting, phishing, online usage, or PIN-based frauds.
Under this protection plan, your cards are protected from loss, theft, or fraud. Issuers charge some amount to insure cards. The protection plans vary depending on service and tenure.
Depending on the service and tenure, the cost of such a plan could range between Rs 1,600 and Rs 2,500 annually. Top banks like the State Bank of India, ICICI Bank, Kotak Mahindra Bank, IndusInd Bank, and Axis Bank offer Card Protection Plans.