Opt for Protection with Credit Cards

By BankBazaar | May 11, 2012

The popularity of credit cards has reached an all time high. People today have become slaves of the plastic money phenomenon, and managing multiple credit cards has become a norm of the day. With the inception of these trends, people no longer desire anything short of extraordinary in all their dealings, including credit cards. Now, credit card companies, in order to attract a larger number of potential customers need to offer great deals, larger credit limits, and exciting offers in order to win the hearts of their target. As people are becoming increasingly dependent on credit cards as a source of funds, security-related risks and hazards have also risen significantly. Hackers and other unethical elements try and ruin a credit card user’s privacy and experience, with examples of fraudulent transactions increasing by the day. Although the central bank of the country, Reserve Bank of India, has introduced a two-point password authentication system, where credit card users in the online platform are required to furnish their Personal Identification Number, in addition to a personal password which the user decides by himself, threats from offline sources are still quite rampant. There have been instances in the past where credit card users were forced to opt for loans like personal loans to repay the debt on their credit cards, which proved to be quite detrimental on their overall finances.

However, credit card users do not have to despair as many banks and insurance companies are providing protection against the fraudulent and unauthorized use of credit cards and debit cards. The process is a simple one, where credit card users have to sign up themselves for this offer, fill an application form with their relevant credit card information and personal details, submit and get it verified by banks, and voila! You have protected yourself and your credit card against all fraudulent transactions that can be propagated against your privacy. This protection is offered at extremely reasonable rates, and banks can charge the minimal payment from their customers account or by charging it to the customer’s monthly credit card statement. Credit card users need to remember that although these insurance policies protect your credit card against misuse, when your credit card is lost, misplaced, or stolen, it is mandatory to report the loss immediately to your bank’s 24 hour helpline. This should be the prerequisite or the golden rule a credit card user must adhere to, without which a credit card user may stand to lose. The role of the bank, as soon as your credit card is lost, is to block your card immediately, and to nullify all further transactions with your card. Most insurance plans for credit card companies provide protection only up to 12 hours after the loss has been recorded by the bank. Thus, in order to avail maximum benefits from your insurance policy, it is best to report the loss immediately to prevent any fraudulent transactions that can be chargeable to your account.

The problem with credit card companies is that not many market these insurance schemes effectively, and it is up to the customer to come and enquire about such schemes on offer. However, this norm is gradually changing as many banks are teaming up with many card protection service providers, bringing accessibility and affordability in insurance protection to credit card users. You also get the benefit of enrolling all your cards such as debit cards and credit cards, loyalty cards, and rewards cards, in one insurance cover protection plan. Also, since many facilities offered by banks have become issuer-agnostic, in case you lose your wallet which had cards belonging to several cards, you are not required to intimate all card banks, propagating a simple and centralized system of banking. In order to avail the maximum benefits from these schemes, it is best to report the loss of credit card as swiftly as possible. Else, if there is a lapse or delay in reporting such a loss, customers will stand to lose out on benefits, adding the financial burden of fraudulent transaction on their head.

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