Alerts on credit card transactions - some tweaks from me to RBI

Thursday, March 31, 2011

The Reserve Bank of India has asked banks to put in place a system for providing online alerts for all card transactions irrespective of amount. Until now banks had to send online alerts to the cardholders for only 'Card Not present' (CNP) transactions which were for the value of Rs 5,000 and above. Taking note of unauthorized or fraudulent withdrawals from ATMs, RBI has said that banks must implement by June 30 a system of instant alerts for all types of transactions irrespective of the amount, involving usage of cards at various channels. .....

 What RBI is doing is the right step in the direction to protect the credit card and debit card users. Two suggestion I would like to give RBI is to authenticate every transaction with a PIN number and Also with the card swipe alert/ payment alert, provide the details of the place and phone number of the merchant where the credit card transaction was done. So that incase of fraud transaction the merchant can be called immediately and the culprit can be nabbed quickly time and bearing the cost of fraud by the credit card owner. 


Example: 


1) Credit Card Owner is currently at home watching World Cup match
2) As per new RBI rule, Receives an SMS saying 4000 was swiped on Mobile Sales shop.
3) CC owner panics calls customer care and blocks the card and he is in trouble as he still has to bear the 4000 which was spent.

As per what i suggest 

1) Firstly Credit card transaction will need a pincode if the person guesses the pin code or knows the pin code he will go ahead and swipe.
2) Credit Card Owner is again at home watching World Cup match
1) Now if this person would have received an sms that said, 4000 was spend on Mobiles sales shop, bandra ph: 022-1234567890.
2)The CC owner would have immediately called that merchant and informed that his card is stolen and this is a fraudulant transction.
3) Shop owner can immediately catch the thief
4) This will not just help nab the fraudsters, this will even give a peace of mind to the credit card owners as they wont atleast have to bear the bills which were not spent by him.


I hope RBI comes accross this post and implments these suggestions, It would bring a lot of peace of mind to all credit card users.


Cheers All...

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