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.
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.
