One can never be too careful when it comes to using credit and debit cards. Constant vigil is a must while executing even the most routine transactions, be it online, or offline at point-of-sale (PoS) terminals in hotels, malls, shops, etc.
Sure, most users take precautions to safeguard their passwords and other security parameters. Also, with the Reserve Bank of India mandating two-factor authentication, thus adding another layer of safety to prevent online frauds, credit card transactions have certainly become more secure. Now, similar action is likely in the offline setup, too.
Recognising the need to further tighten the security of 'card-present' transactions, the banking regulator had instituted a working group, which has submitted a report with recommendations, including the issue of chip cards and additional PINs (personal identification numbers) for such transactions. While these measures have to be initiated by the regulator and the bank, you, too, can take certain steps to check any slippages at your end.
At PoS terminals
Here's a quick memory test: How many times have you handed over your card to the hotel staff to make a payment, while being seated at your dinner table? The chances are that you would be doing this all the time. After all, it is very convenient and seems like a routine thing to do, the attendant takes your card, swipes it for the payment amount and returns with the counterfoil.
Since you need to sign this charge-slip, the entire chain is secure, you would assume. However, this may not always be the case. For one, your card may be cloned - that is, duplicated to be misused using the information on its magnetic strip, if the staff has a devious motive. Likewise, even lost or stolen cards can be used to make purchases. "Merchants are supposed to verify that the card-holder's signature on the charge-slip matches with that at the back of the card. Most merchants do not check this diligently or the signatures look very similar.
Hence, stolen cards can be easily misused by miscreants before the real card holders realise that they have lost the card," says Shyamal Saxena, general manager, retail banking products, Standard Chartered Bank . Also, be alert while authenticating the slips. "Ensure that the cashier swipes the card in your presence, check the amount on the transaction slip before signing and also save the receipts to check them against monthly statements," advises Sandeep Bhalla, business head, credit payment products, Citibank India .
At ATMs
In many ATMs, there is no screen or partition to block others' view while you punch your ATM PIN (personal identification number). This could make your card vulnerable to misuse if it is stolen, as both the plastic and the PIN would have been compromised. Therefore, you need to take some precautions.
"When the PIN is to be entered at the ATM or at a PoS, one should keep his hand above the keypad to prevent the capture of PIN by any third person or by any camera device kept by any fraudster," says Sameer Nemavarkar, CEO, Atos Worldline India, an electronic payment services company
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