Ask The Readers: What Is Your Liability Upon Losing Your Debit Card?

by Vinaya HS on July 8, 2010

in Finance

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

D asked,

I know there are clear-cut rules on your liability and what you should do upon losing your credit card. But what are the rules with respect to debit cards? What’s your liability and what should you do? I’m asking because my debit card doesn’t have my photo on it. Nor does the merchant even attempt to verify my signature. [Nor is it PIN verified.] A transaction on my lost debit card will immediately debit the funds from my account.

I don’t know the answer. It’s especially scary given the fact that many banks have hiked up the daily limits for shopping with your debit card. With a daily shopping limit of over Rs 1.5 lacs, would you even want to carry such a debit card in your wallet?

Coming back, what are the liabilities and lost-card reporting rules for debit cards? Do you know the answer?




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 2 comments… read them below or add one }

Ajay July 8, 2010 at 9:49 AM

I got the T&C for Debit Cards from ICICI here

This is a copy from the file, but not sure how much they hold true in case of an emergency

The liability of the Cardholder for disputed, unauthorized Transactions (except ATM cash disbursements) shall be limited to zero provided the Cardholder notifies ICICI Bank in writing immediately of such disputed, unauthorized Transactions and the Cardholder is not, in the opinion of ICICI Bank, guilty of negligence, fraud or collusion.
Provided, however, the liability of the Cardholder in respect of disputed, unauthorized Transactions carried out under loss or stolen Cards shall be limited to zero only if such disputed, unauthorized Transactions have been done within a period of 30 days prior to the date of such written notification to ICICI Bank. ICICI Bank shall provide provisional credit to the Account, within a period of seven working days (of ICICI Bank) of such notification, in respect of such disputed, unauthorized Transactions, provided
copy of Police complaint or FIR is submitted to ICICI Bank along with the written notification.

Vinaya H S July 8, 2010 at 10:16 AM

Thanks for digging this up.

Previous post:

Next post: