#FinancialBytes: Lost credit card? Here's what you should do next
What's the story
Credit cards are one of the widely-used cashless payment methods because of the convenience they offer.
Almost everyone owns a credit card nowadays; they play an important role in our financial lives.
Credit cards, however, are easy to lose and credit card theft is also on the rise these days.
Here's what you need to do if your credit card is lost or stolen.
#1
Firstly, call up the bank and block the credit card
Once the cardholder realizes that their credit card is lost/stolen, the first thing to do is call up the customer care number of the concerned bank and inform them about it.
They should report the credit card loss/theft and also get the card blocked as soon as possible.
Once this is done, the customer wouldn't be liable for any further transactions on that card.
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#2: Bank's responsibility to protect customers against frauds
Once a cardholder reports the loss/theft of their credit card, the bank is responsible for protecting the customer against frauds, according to the Reserve Bank of India's Frauds Circular. It will ensure that the customer doesn't have to pay anything if their card is misused.
#3
Visit your local bank branch's credit card department
Cardholders can also visit their local bank branch's credit card department and notify them in writing mentioning the details about the loss/theft of their card.
They should mention that they have already reported the issue to customer care.
Almost all credit card issuers have zero-liability policies to protect their customers by covering fraudulent transactions on the lost/stolen card from the time of reporting.
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#4: Register an FIR and submit the copy to bank
Cardholders can also register a First Information Report (FIR) at a police station as an additional measure. They can submit a copy of the FIR to their bank. This will come in handy in case unauthorized transactions are made on the reported credit card.
#5
What should the customer do next?
Once the issue is reported, the bank looks into the matter and takes steps to replace the credit card.
Customers should take steps to prevent card loss/theft and opt for card protection plans.
They should review their transactions regularly and report any unusual activity.
One must maintain confidentiality when it comes to security credentials and sensitive information like credit card account number and PIN.