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Debit Card, Credit Card Rule: Can't Use New Card for Online Transactions? Know How to Activate it

Amid rising cases of banking frauds in the country, the Reserve Bank of India has introduced several measures for secure debit and credit card transactions. All the new cards issued by banks, are now only enabled for domestic transactions at ATMs and point of sale (PoS) terminals.

What it means?

New cards, including those which are reissued, can only be used for domestic transactions at ATMs and point of sale (PoS) terminals. “At the time of issue/re-issue, all cards (physical and virtual) shall be enabled for use only at contact based points of usage within India,” RBI said.

For online transactions:

To enable any other facilities including online transactions, international transactions and contactless transactions in the debit and credit cards, customers need to approach the bank.

How to activate online transactions in your debit and credit cards:

Cardholders have to call a toll-free number of the bank and follow the instructions to set the transaction preferences. The same can be done via net-banking option as well. The online transaction facility will be activated by the bank within 24 hours. The lender will send a notification to the customer through SMS or mail.

Even in cases of reissuing or upgradation of the debit and credit cards, the online transaction facility requires to be activated by the users. If cardholders have not used their card for online transaction, international transactions and contactless transactions before, the bank will have an option to disable their cards for those transactions, RBI said. The lenders will have the right to deactivate current cards and reissue them based on risk perception.

“Over the last decade, debit cards and credit cards have witnessed significant advancement in technology and adoption, however, unfortunately this has also resulted in sophistication in fraud too. RBI’s circular is a welcome move to enforce on the card providers to enable user-defined security measures which they can control based on their needs. This will help the debit card users to transact online and offline confidently,” Anil Pinapala on Founder and chief executive officer of Vivifi India Finance Private Limited.

“Many users in India still use their cards only at POS or ATMs and this gives them an additional level of safety. Earlier such users could have fallen prey to fraudsters. But now since online and international transactions need to be enabled by the user so only people who want to utilise these options will get them enabled. It is an additional authorisation step, which only makes it more secure,” Ashutosh Dabral, chief product officer, MoneyTap.

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