As per Suggestions of Manasji(manas2008), I am updating my review:
Lot of us in corporate world keep getting calls for credit cards on a daily basis. Credit card has kind off become a part of our lives. But freedom comes with a price tag. I am going to share with you a true story.
A person in my friend circle had applied for credit card of a very reputed bank. For this, he supplied his id proof, address proof, account statement, etc. After few months he came to know that he is acting as a guarantor for a hefty loan amount for a person he does not even know. After a lot of hassles and trials he came out clean from this mess but the time spent for all this was irreplaceable. A Senior Bank official later apologized and suggested that this may happen with anyone. Its not possible to screen the reliability of all the customer care agents coming for document collection. Customer should take few precautions while giving the documents. For example in this case: After signing the photocopies, put up the date and specify the purpose of supplying the photocopies(for e.g.: For XYZ bank’s credit card only). This way you are safe from misuse of ur id proofs. Also, Atleast read the heading of the section of the credit card application before signing. Maybe you don’t want the balance transfer or insurance or any other piggy backed schemes along with your card. Cross the section to avoid its misuse later.
Section added as per Suggestions of Manasji:
Debit cards offered by Banks are good enough to take care of all the internet needs. Best part of Debit card: YOU ONLY SPEND WHAT YOU HAVE. I Agree with what he is saying. Specially for spend thrift people like me. This way you can have the best control on your spendings.
But people like me who are very apprehensive about using their debit card online can go in for credit card of small credit limit(my CC has limit of 27K only). Why I am saying this?
1) My Account might be having from few thousands to few Lakhs.
2) Not all sites directly take you to Bank’s payment gateway. They collect your credit card’s details and charge you later.
3) By any chance, if you are the vitim of credit card fraud, the Liability is lesser. For that make sure you CC bank has the feature of refusing the Credit card processing if it crosses the set limit.
Would like to add few more tips on usage of card from my personal experience. This is applicable to both Debit and Credit cards.
1) DO NOT REGISTER WITH SITE WHO INSISTS ON SAVING YOUR CARD DETAILS WHILE REGISTRATION.
(Check this out: https://m.slickdeals.net/forums/showthread.php?t=694416&page=16 . These people also registered with their card details and faced problems.)
2) Avoid using the card(Debit/Credit) if the site is not taking you to payment gateway and collecting your details to charge you later.
3) If you have to, then make sure they are reliable. Check Their SSL certificate. Should not be expired.
(How to check: Scroll to botton. It will have some logo like Verisign secure, etc. Clicking on it would take you to the respective site. Check the expiry date.)
4) When on Payment gateway, make sure site starts with https and not http. It would be having a Lock icon on the bottom of the page to tell its a secure site.
5) For CC, Avoid paying minimum balance if you can. Make full payment regularly. Bank’s Customer care agents would tempt you for it. But remember, they will be charging you 35% per annum for it. Also, your free EMIs(no processing fees or interest) would become chargeble.
6) Whenever you make any changes/complains, make it a point to note down complain number, date, time and CC agent’s name. This would come in handy when banks forget to act accordingly.
7) Know your rights and act confidently. I received a call from a very reputed bank saying I have not made a payment of approx. 22K on my credit card. Ironically, I didn’t have any credit card of this bank. I had once applied but they didn’t approve. Moreover address proof said I lived in banglore but I have never even crossed the station. They gave me the name on credit card but that was my name after marriage and the card’s issue date was long before marriage. My habit of putting details on photocopies came handy. Also, worst was that they were not even ready to provide me with the details of ids and the credit card statement. I told them strongly, I am not the culprit they are looking for. They told me they’ll send me legal notice or I should make settlements. I said "fine, send me a legal notice and I’ll see you in consumer court." Since then, I haven’t heard from them. When you know you are right, confidence comes in.
8) Hide the CVV no. given behind after memorising for safety. Applicable for both Debit and Credit card.
9) If you loose your card, immediately call the bank for blocking and get the request number.
10) You can use these tips in other purposes as well. For example while applying for mobile connection, etc.
Most of the tips are part of terms and conditions and tips on avoiding phishing provided by banks. Yet we don’t read them and face problems. Remember: AWARENESS IS THE BEST WEAPON. Hope this will help you all in future. Share it with people whom you think should be cautioned.
Little safety.peace of mind.
(Request: Please keep adding you comments and help me in improving the article.)