Apr 15, 2013
There are many fraud transactions with the credit cards. So for stopping the frauds, Reserve bank of India has taken a step to bring credit card transaction more secure. There is an additional security measure is developed with the credit cards.
One needs to enter the PIN of credit card after swipe at retail merchant outlet from July 1. Earlier only signing the slip is what one need to for purchasing from retail outlet.
This second security feature will be very handy for stopping the unwanted or fraud transaction with credit cards.
Credit cards in India has developed with fast pace in recent years but security is always an issue with credit cards. There are as many as 30 crore unauthorized credit card transaction last year.
The main problem is with retail outlet. There are some cases where retail outlet compromise the security of the customer and then cloning process is also a problem.
As of now, there is an option with the customer to enter the pin which will be must after June 30. Banks need to set up PIN enabled swipe machine at retail outlets. One may lose his credit card and the other wants to misuse, but he can’t misuse it as long as he won’t get the PIN number.
This is the second layer of security which will reduce the frauds number.
Banks start changes the magstripe cards to chip-based cards of the customer who at least once use it aboard. There are many complaints of cloning the credit cards that use it in aboard especially Southeast Asia.
The customer who wants to use credit card in aboard must apply for chip based credit cards surrendering the magstripe cards as the present card will not work in aboard after June 30.
Some banks change the PIN digit four to six which is more security proof. One must also change the debit card to chip based debit cards if wants to use it in foreign countries.