rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Getahead » How to prevent MISUSE of your credit card in foreign countries

How to prevent MISUSE of your credit card in foreign countries

Last updated on: February 19, 2013 12:57 IST

How to prevent MISUSE of your credit card in foreign countries

     Next

Next
Khyati Dharamsi

What to keep in mind before you swipe your credit cards at foreign locations and three things you must do before leaving for your journey

Just blocked your seats on the international flight? Before you take off to your dream destination, it is essential to think of the way you are going to pay for the comfort at the foreign location.

"No worries, I have my international credit card!" many would simply respond. But is it safe to use your credit card at foreign locations?

But your card may be at higher risk when swiped internationally than in India, so show numbers revealed by Reserve Bank of India.

The author has been a finance journalist with leading publications DNA Money and Economic Times Wealth. She has extensively covered banking, insurance, primary and secondary markets, mutual funds, gold, income tax, private equity and venture capital space over the span of six years 


Photographs: Rediff Archives

     Next

How to prevent MISUSE of your credit card in foreign countries

Prev     Next
Prev

Next

A Working Group on Securing Card-Present Transactions of RBI, chaired by Gowri Mukherjee, said in its report, "A trend in counterfeit card fraud is that counterfeiting typically happens when customers travel internationally." The data revealed in the report says that the domestic credit card fraud to sales ratio is 1.06 basis points, while International credit card fraud to sales ratio is 28.28 basis points, based transaction reported between March 2010 and February 2011.

So, when you swipe on international machines, your data may be copied on to another old or expired card using a device -- also called skimming.

The fraudster can then merrily use your card to make any purchase. Banks too have observed higher frauds when card holders travel to risk-prone countries such as Srilanka, Malaysia or Thailand. The entire list can be located by requesting your bank.


Photographs: Rediff Archives

Prev     Next

How to prevent MISUSE of your credit card in foreign countries

Prev     Next
Prev

Next

No doubt, banks such as HDFC Bank, HSBC, ICICI Bank and others have been re-carding those who have swiped their credit cards at these fraud-prone locations. So keep a lookout on your mailers where your bank asks you to either register with the call center or online for your fresh card.

"In the event, the Card Member chooses not to block the Card after being informed by ICICI Bank of probable fraud risk or are not contactable by ICICI Bank, ICICI Bank shall not stand liable or responsible in any manner for any fraudulent transactions reported to it thereafter on account of fraudulent usage of the Card or otherwise," says ICICI Bank in it terms and conditions.

Apart from fraud, note that your transaction value would be 3.5 per cent costlier. This is because banks charge something called as a currency mark-up charge when cards are used for international transactions. Also, the currency conversion rate applicable may differ from the date you made your purchase.

The rate applicable is of the day the credit card company or bank settles the transaction.


Photographs: Rediff Archives

Prev     Next

How to prevent MISUSE of your credit card in foreign countries

Prev     Next
Prev

Next

Your next steps

Set limits on your international cards to the extent you would need. Carry foreign exchange or prepaid forex cards that banks offer. Also, once you are back, you can take up the bank's offer to block your existing card re-issue a new card. Another option may be to ask the bank for an EMV or chip based cards. These cards are better off to fight frauds and require you to key in a PIN after the card is dipped (instead of swipe).


Photographs: Rediff Archives
Tags: EMV , MISUSE , PIN

Prev     Next

How to prevent MISUSE of your credit card in foreign countries

Prev     Next
Prev

Next

You can check the insurance cover offered on the credit card for fraudulent purchases. If you frequently travel abroad, subscription to services of CPP (a card protection company in India) may help. One call to CPP can block all your registered cards immediately, if you lose your card or fear that there is a data leak.

Ian Craig, Managing Director CPP India, said, "Fraudulent spends on their lost cards are insured from 7 days prior to the loss report and extends to any period after it, thereby reassuring customers of peace of mind."


Photographs: Rediff Archives

Prev     Next

How to prevent MISUSE of your credit card in foreign countries

Prev     More
Prev

More

Make sure you use the card at proper locations, covering the device with your hand to avoid leakage of PIN and don't lose sight of the card. After all, no one wants to spoil the memories of a mesmerising vacation with bitter experiences.


Photographs: Rediff Archives
Tags: PIN , MISUSE

Prev     More