Monday, October 13, 2008

Avoid Debit Card Traps



 

India is the second fastest growing market for financial cards in the Asia-Pacific region, it is utmost important to know the scams persisting in the plastic cards. Many people wrongly assume that debit cards are safer than credit cards, but actually it will be worse when a debit card is stolen or cloned, and then misused, there’s no grace period to claim the charges.

If you are not careful, your debit card could be much less secure than your credit card. All debit cards have personal identification numbers for ATM use. There are really two types of cards, some require your secret PIN not just at ATMs but even in retail outlets on to a electronic data capture machine[EDC],after your card is swiped in it. Such cards are safer because even if they are lost or stolen, thieves cannot use them unless they know its PIN.

 Some banks offer you only ATM cum debit cards that don’t require the PIN for shopping such cards should be handled carefully. So check your balance and change your PIN immediately after the shopping. Very often account holders get fraudulent e-mails asking for bank numbers and other details like debit card PIN. Banks regularly advising not to respond for such e-mails. No real bank ever asks for such information via phone or e-mail.

 Avoid the trap by leaving the debit card safely at home while traveling. People can use credit card instead even if they don’t any other time. Never use a debit card any place your card is taken out of sight.

Don’t use the card for online purchases especially when you don’t know the retailers reputation. It is advisable not to use debit card at retail outlets if you have a huge balance.

Debit card fraud is trickier than credit card fraud because it can strike even if you are careful. So check your printed statements every month and register for online banking by which you can track your money trail very frequently.

At ATMs you must make sure that you have logged out; press the Exit button and get the Welcome screen before you leaving.