Of course, fraudsters have been one step ahead, but when it comes to beating the fraudster the banking regulator has been pretty proactive with tighter regulations for security and risk mitigation measures for electronic payment transactions in many cases.
In fact, the day the country’s Finance Minister gave his budget speech, the RBI silently put in place its guidelines for banks for risk mitigation for electronic payments, which includes cards as well as net banking transactions. Here’s a quick list of what to expect, and the change you should know about the same.
From June 30, any new card issued by the bank will work only domestically, unless you specifically ask for an international debit or credit card.AFP
1) If you plan to apply for a new credit card or even a debit card, don’t just assume that it’s going to work overseas. From June 30, any new card issued by the bank will work only domestically, unless you specifically ask for an international debit or credit card. In fact, all new cards will be chip- and Pin-based cards. To know more about chip-based cards, read here.
2) If you are an existing international debit/ credit card consumer, be prepared to surrender you existing card and getting a new card form your bank. This means the credit/debit card which has a magnetic strip at the back of the card will be replaced by a new chip-based card. This stands true for all those who have used their cards even once at an international Point of Sale, or those who have done an international e-commerce transaction or used at an international ATM.
3) Also keep in mind that these new international debit/credit cards will have a predetermined limit set for international use. Of course, that limit will be set by the bank based on your individual risk profile and your agreement for the same. This too will come into force by June 30, but until then banks are permitted to set an omnibus threshold limit of not more than $500.
In face, a few banks have already set international POS limit for existing debit cards as Rs0. And they are asking customers to apply for new debit cards if they want the limit to be enhanced. ICICI Bank Spokesperson said,“ICICI Bank cardholders already have the option to set the withdrawal limit on their debit cards. This facility allows debit cardholders to revise (increase or decrease) the withdrawal limits at ATM/POS/E-Com, temporarily or permanently. The limits can be revised as per the type of the card the customer holds. The customer can call up the Bank’s 24-hour Customer Care or visit the nearest branch to revise the limit. The revised limit gets updated within 15 minutes from the time of placing the request.”
4) Banks will soon also set up a system where an additional factor of authentication will be placed for the cards issued in India and used internationally. This step may take a few more seconds for your transactions to go through, but it will decrease the risk of frauds.
5) As of now, if you need to block your card in case it’s stolen, you have to call your bank’s hotline number. This means it takes a few minutes before your call gets through the bank customer service agent or IVR machine. And the fraudster can easily do the intended damage even as you wait on phone to get to the executive. But in the future, you will get a facility where in you can block you card even via an SMS, and also get a confirmation on the same after the card is blocked.
There are a few more guidelines which the RBI has asked banks to enforce regarding net banking and banks’ merchant systems. These measures are taken to ensure that your card transactions are safer. Make sure, you call your bank to know more about chip-based cards. Many banks are offering such cards as of now. Also do read this story to know tips on using you cards for online transactions.
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