Credit Card Not Signed – Fraudulent Transaction occurs – Rights of Card Holder ?

Most Consumers ignore to affix their signature on the reverse of the Credit Card. Here is an instance where Mr. Rahul did not affix his signature and put a note “See My Id” (Merchant has to ask for Valid Identification). Rahul misplaced /lost his credit card only to have realized it a day later within which all the damages had been done. Rahul’s card was used for shopping an expensive Watch and then used to pay a Restaurant Bill, together a fraudulent transaction to the tune of Rs 30,000.

Rahul sent us an e-mail asking for how can he get out of this situation ? What are his Rights as a Credit Card Holder when a fraudulent transaction occurs ?

Since in this case we ave a Misplaced / Stolen credit Card, it is better to report to the Police Station and obtain a copy of FIR as well as Banks will later ask for it [Procedural Work]. Then Kindly follow steps mentioned in this Article In your defense while disputing the transaction with the bank, do write that you had your signature affixed and also written – “See My Id”. As per RBI Rules, the onus lies on the bank to prove that you have done the purchase and if it is unable to do so, then you have absolutely no liablity.

In this regard to improve the eco-system, we had written to the RBI asking if they Blacklist merchants where fraudulent transactions occur, RBI replied in the negative [We had unearthed few merchants who had fraudulent transaction rate as high as 50%]. However, we are lobbying continuously with the RBI that Card Issuing Banks must educate the Merchants who accept Credit Cards on all these basics to protect the consumer as well as improve the eco-system. Your Questions and Comments are appreciated.

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