Debit cards or ATM cards are a convenient way to defray costs while travelling outside India. It may or may not be the cheapest option but scores high on convenience and security. Usage however does come with its usual quota of potential risks, and no country is immune to it. In fact, India is among the top 5 countries in the world reporting credit and debit card frauds. So is US. Therefore, do not presume that if you are travelling to advanced countries like US, Western Europe or Australia, you are much safer when compared to developing countries in South America, Asia or Africa. But if you take few precautions, the risks can be greatly mitigated.
I normally carry one debit and one credit card while travelling overseas or in India and I think that is more than sufficient. Thanks to Reserve Bank India, all cards issued in India today are Chip and PIN cards, adding an extra layer of protection. It is however possible few countries may not have the requirement of PIN at PoS. During my foreign holidays so far, while I have had couple of hiccups, I was never handicapped from continuing with the journey, thanks to some of the risk mitigating measures I diligently follow.
I have listed below some of the precautions that I normally take with respect to the cards that I carry. These are not in any particular order of importance but in my view, the ones in Purple color font are must follow.
Inform the bank about the upcoming foreign trip
Banks typically monitor spends on debit card on a real time basis. Unusual spends are verified with the holder. Initially, I used to get calls as soon as the debit card was swiped at a foreign location the first time. Then I came across this option of informing the card issuing bank about the upcoming travels with dates. I still get text and email messages but no calls. Normally, net banking provides this option though I am not sure if this facility is available for all account holders or only for premium account holders. Either way, figure out a way to inform the bank.
Activate international roaming on the mobile phone registered with bank
Do not leave the registered mobile phone at home. Instead, activate international roaming so you can continue to receive messages on card usage. Indian banks have to mandatorily send text messages to the registered mobile number and eMails to the registered eMail ID provided the holder has opted for this facility. I have had several instances where either text or eMail message is not received or delayed. So you need to check both every day.
Modify withdrawal and transaction limits if necessary
Depending on the need and the country(ies) you are travelling to, modify both cash withdrawal and transaction limits. Banks allow separate limits for domestic and international transactions and withdrawals. This will minimize losses in case of any eventuality.
Prefer ATMs located in bank premises for cash withdrawals
As much as possible, avoid remote locations to withdraw cash. Including ATMs located near convenience stores, railway stations and so on. I have always preferred to withdraw cash from ATMs located on the premises of banks. While cash shortages are very rare, it can happen. So don’t forget to count cash. Withdrawing cash from the premises of a bank can also mean faster resolution in case of any problem.
If using remote locations, do look around to ensure nothing seems suspicious.
I also tend to avoid ATMs that appear old and in worn out condition.
Do not seek help from strangers
In case the default language of ATM is not English, or you find it difficult to operate the ATM, avoid seeking help from a stranger. Instead, walk into a bank and seek help.
Check and retain copies of charge slips, withdrawal slips
Most of the time, PoS machines do not display the amount charged when inputting the PIN. Check the charge slip once generated to ensure correct amount is charged. While mistakes are rare, they do happen. If you note a mistake later on, it will be quite a hassle to get it rectified. Especially if you have left the place where the card was used.
Retain the charge and withdrawal slips until you are able to cross check with the bank statement.
Cash is king. Always carry some
Always carry some cash. I have faced situations when credit/debit cards did not work at merchant establishments due to connectivity issues. You can also withdraw cash on Day 1 instead of carrying from India.
Do not carry all the cards and all the cash together
One of the most important risk mitigating habit is not to carry cash and the cards in one wallet or pouch or bag. Split it in a way that even if you lose a part of it, your vacation is not impacted. When abroad, every day, I carry just about as much cash as I believe is necessary for the day, plus one credit or debit card, leaving the rest of cash and the second card behind in the hotel locker. I have lost my wallet once and my wife has had her handbag stolen. In both the cases, I was not unduly handicapped.
Consider card protection plans
Few banks offer card protection plans that offer a variety of services on a single call. These include emergency cash or advance, replacement card, fraud protection and travel assistance. The costs vary depending on the plan chosen but can be upwards of INR 1,500 per year. If you own a premium card, many of the services come without additional service cost.
In case of loss or unauthorized transaction, inform bank immediately
In case you lose the card for whatever reason or notice an unauthorized transaction, howsoever small, inform the bank immediately. Delays could mean higher liability for you. Most of the card holders (including me!) will not be fully aware of the liability or the bank’s policy in case of lost cards or unauthorized transactions and there is probably no need to know all the details. Critical part is informing the bank as soon as you become aware.
Few other precautions
- Carry a physical or digital copy of the front portion of the card. This will be useful if you lose the card. Avoid copying the back of the card with signature and CVV number.
- Remember the PIN and user ID/password for internet banking. Avoid writing these down anywhere or storing it on the phone. Note that you can always change the PIN, either at an ATM or online in case you forget. Also carry the relevant telephone numbers – the bank’s customer service, both India and local, and your relationship manager. It will be easier to call them whenever needed. The numbers will be stored in your mobile but write it down somewhere.
- If accessing internet banking, make sure you use a secure network. This is needed even if accessing your account via the bank’s app.
- Never share any sensitive details if asked for over the phone.
- Always ensure the card is swiped in front of you.
- Some advise to memorise and then block out the CVV number on the back of the debit card. It is your choice, but with the PIN being mandatory, I am happy as it is.
- Avoid carrying more than 2 cards, one for primary use and the other as a back up.
Last but not the least, don’t forget the most important aspect – keeping adequate funds in your bank account over and above the minimum balance specified. I am sure you can do without your card being declined.