What to do when you lose that credit card

Shaina Singh was in a hurry to catch her flight to Delhi. The airport was unusually crowded. A large group of teenagers had come to bid their friend adieu.

Fumbling with her flight tickets and business meeting documents, she pushed her way through and managed to queue up at the check-in counter just in time.

There she opened her long-rectangular wallet, which she used while travelling. Everything appeared to be in place. Or, maybe not! She looked again and realised something was amiss. It was one of her cards —- the platinum credit card she had got barely a month back. But she had to go through. The meeting was important and she had enough cash anyway. She would follow up on the card once back in Mumbai.

While everyone feels the pinch of losing hard cash, the loss of credit card is often ignored. Many are even unaware of the procedure to report a lost card.

So it was with Shaina. Little did she realise that the entire Rs 2 lakh limit on her platinum card would have been used up by the time she was back. The credit card company said it was her fault, for having failed to report the loss sooner.

Moral of the story: do not take the loss of a credit card lightly, unless you are okay with coughing up significant sums for expenses incurred by someone else.

Here’s what Shaina should have done:

- Stored the credit card 24-hour helpline number on her mobile phone. Alternatively, she could have called a number-search firm such as JustDial and taken the helpline number.

- If Shaina was abroad, she could have used VISA/ MasterCard Global helpline numbers to report the loss.

- Called up the helpline number as soon as she realised she had lost the card. Credit card companies say the loss has to be reported within 24 hours of loss. But the sooner you inform, the safer you are. Card companies would have nothing to do with a claim if fraudulent transactions are made before you informed the helpline. Once the loss is reported, however, the onus for any fraudulent transaction made on the card lies with the company.

- Recorded the call to the card helpline or kept a note of the call details such as the time, the executive handling the call and its duration. The company can always dispute the time intervening the fraudulent transaction on your card and the time you called to report its loss. As there is no acknowledgement given after you report the loss, you might have to prove the call was made.

- Kept the credit card details such as card number, expiry date and type of card handy, in a place other than the wallet where the card was kept. The helpline would need the details to block the card. If you don’t have the number handy, ask the executive to help you by giving other relevant details such as full name, address etc.
- Rushed to a police station or asked the airport security how to lodge a first information report (FIR).  The credit card company needs the FIR along with a letter stating the loss of the card and asking for blocking the old card and replacement. The letter should have details such as the card number, time and date you realised the card was lost, time you reported the loss to the helpline and your contact details.

- Checked the credit card kit given to her and noted down the address where the letter and the FIR needed to be sent. Alternatively, she could have taken the details from the website of the card company.

- Erased the 3-digit CVV number on the card after memorising it or noting it down somewhere safe. Remember, this number is not to be revealed even to the helpline executive or in the letter.

- Checked with the helpline the exact procedure for reporting loss of a card, as it keeps changing from bank to bank. Some banks don’t make it mandatory for card holders to send the FIR copy or write a letter; a phone call is enough.

- Had an insurance cover against loss of credit card. Several card issuers offer the facility, particularly on cards that have a higher credit limit. Find out from your bank customer care if you could get a cover.

- Reported the loss immediately even if she had an insurance cover. There are clauses in the insurance policy stating that fraudulent transactions incurred before the loss was informed to the bank would not be compensated by way of the insurance cover.

- Waited for a new card. In case you realise after blocking the card that you had forgotten it at home and not lost it, don’t head for the shopping mall with it. The old card is of no use and is to be destroyed carefully by cutting it diagonally. Wait till the new card arrives.