Showing posts with label debit cards. Show all posts
Showing posts with label debit cards. Show all posts

Wednesday, October 23, 2013

Insurance cover coming for online fraud - Rupay Card


Both Visa and MasterCard offer this feature. RuPay cards by NPCI will also start offering this by the end of this year or early January,

With the rise in cases of online fraud, National Payments Corporation of India (NPCI) has decided to provide an insurance cover for such transactions.

NPCI will tie up with general insurance companies for this; it has called for a Request For Proposal (RFP). This would cover both domestic and international transactions, all those done by swiping a card, PIN-based transactions on ATMs or points of sale and e-commerce transactions with two-step authentication.

According to the Kaspersky Consumer Security Risks Survey, a global study conducted by B2B International and Kaspersky Lab in the summer of 2013, about 41 per cent of users who lost their money as the result of financial cyber-fraud failed to get a single cent returned to them. And, only 45 per cent of users who suffered through online fraud were fully compensated. In 17 per cent of cases the money disappeared during e-banking sessions; 13 per cent of the victims were customers of online stores.

“Technology is changing the fraud landscape and challenging the boundaries of fraud risk management. The (earlier) frameworks to mitigate simple frauds are no longer effective,” Rohit Mahajan, partner and co-head, forensic services, at KPMG in India, had said while issuing an India Fraud Survey last year.

The NPCI insurance cover will be over and above any policy taken by a member-bank. The policy will cover compromised and disputed transactions carried on the National Financial Switch (which facilitates inter-bank ATM transactions) ATM Network. It will also cover disputed transactions on the NFS Network. The RFP issued by NPCI is to identify and appoint the general insurer for providing insurance cover for fraudulent transactions that result in financial loss to the customers of NFS members or sub-members; also for non-bank ATM operators.

“This is a good opportunity for the insurance community. We will be interested in taking part in the bidding process, since it is a large and prestigious contract,” said a senior official of a state-owned general insurance company.

NPCI will initially cover Rs 180 crore of approved financial transactions under the insurance policy with the selected bidder. If the transaction volume goes beyond the initial committed volume of Rs 180 crore, NPCI shall request an additional cover.

The overall insurance cover that will be provided will be Rs 10 crore and the per-card cover will be Rs 50,000. The insurer (which wins the bid) will have to settle claims within 30 days of claim submission by NPCI. Further, the bidder will also have to honour the request from any member-bank(s) for any additional cover sought, once the policy is issued to NPCI and is in force. The premiums will be paid by NPCI.

To be eligible for the bid, an insurance company should have a minimum of three years of operations in general insurance in India as on March 31. Also, a minimum gross direct premium income of Rs 250 crore for 2011-12 and 2012-13, respectively. The non-life insurer is also required to have a minimum claim settlement ratio of 75 per cent in the past three financial years and not be currently blacklisted by NPCI, any government body or financial institution in India. All this would mean only the large private general insurers and the four state-owned general insurance companies will be eligible.

In case of a disputed transaction using a debit/credit card, it is the customer's responsibility to prove he is not at fault. Till then, they are liable to pay for the transaction. As a protection against this, one can opt for credit or debit cards which have the zero-liability feature. Both Visa and MasterCard offer this feature. RuPay cards by NPCI will also start offering this by the end of this year or early January, said an official.

Monday, October 21, 2013

Banks yet to cut debit card fee at fuel pumps - Rupay Card

A year after the Reserve Bank of India (RBI) announced a cut in charges on debit card transactions, banks continue to impose a fee of 2.5% for payments at petrol pumps, thereby making an undue gain at the cost of the consumer. Earlier this month, large banks thwarted an attempt by the RBI-promoted National Payments Corporation of India (NPCI) from capping charges on debit cards that are part of NPCI's Rupay network.

Last year, RBI asked banks to cap the charges on debit card transactions at 0.75% for transaction values up to Rs 2,000 and 1% for larger transactions. But in debit card transactions at petrol pumps, banks continue to impose a 2.5% surcharge, which are mostly passed on to the consumer.

Sources said that NPCI had sent a communication to banks asking them not to charge more than 1% on its Rupay cards. Rupay cards were introduced by NPCI as India's answer to MasterCard and Visa. Sources said that the move has been stymied by banks who have called for more discussion on the issue.





The 2.5% surcharge has its origins in the days when credit cards were in their infancy and debit cards non-existent. Typically, when a bank installs a credit card swipe machine at a retail outlet, its agreement with the merchant bars any kind of surcharge being passed on to the customer.

But in the case of petrol pumps and Indian Railways, an exception was made allowing them to pass on the charges (described by banks as 'merchant discount rate'), to the customer. The exception was made to end an impasse where these government entities were refusing cards on the grounds that their margins were too low to absorb the credit card charges of 2.5%.

RBI, while slashing charges on debit cards, had used the rationale that the transaction cost of credit and debit card should not be identical. This was because credit card transactions required the bank to provide free credit to the customer until the monthly bill was issued. The bank also took on the risk of the customer defaulting on his obligations.

In debit cards, the money goes straight out of the customer's bank account and the only expenses are on account of using the network and in respect of security of transaction. In the West, regulators have already started capping charges on debit card transactions.

Bankers say that a huge transformation is taking place in payments as debit card transactions are set to outstrip payments by credit cards in coming years. In July 2013, banks saw 4.23 crore credit card transactions as against 5.24 crore debit card transactions. In value terms, however, credit card transactions continue to be higher at Rs 11,038 crore as against Rs 7,722 crore under debit. With the focus now on financial inclusion, the number of debit cards and set to go even higher.
 

Zero-liability cards are useful - Rupay Cards

The sheer fear of loss of a credit or debit card can give ulcers to most. Besides the monetary liability, it involves running from pillar to post to get the card blocked.

In case of a disputed transaction, it is the customer's responsibility to prove it is not his fault. Till then, he is liable to pay for the transaction. Eventually, if the customer is able to prove he is not at fault, the bank will refund the amount, but this could take time. To protect yourself against this, you can opt for credit or debit cards which have the zero-liability feature. Both Visa and MasterCard offer this feature. RuPay will start offering this by the end of this year or early January, said an official from National Payments Corporation of India. But unless your card issuing bank offers this facility, you cannot avail of it. Banks have to incur an additional cost for the insurance to cover the liability in case of a loss of card, which pushes up their cost, which is why not all banks offer it, while some offer it on select cards.

The advantage of this is that once the card is reported stolen or lost, the cardholder is not liable to pay for any transaction made on the card. In case of a debit card, the amount transacted will be restored to the cardholder's account.

While this is a given in some parts of the world, in India banks offer it selectively, says Uttam Nayak, group country manager for India and south Asia, Visa. The card company introduced this feature in India in 2004. There is no additional fee that the customer pays for this. “We realised that fraud was a big concern for customers,” he says.

ICICI Bank, HDFC Bank, Axis Bank and Standard Chartered Bank do offer this. But cardholders need to keep in mind the feature will not work in case of an automated teller machine or online transactions, since this requires the use of the PIN. It will work only if the card is used to swipe at a point of sales, at a shop or a merchant establishment.

Some banks may ask you for a written application with your card number, account number (in case of debit card) and date of loss of card; copy of the police complaint and copy of passport in case of a fraud abroad. While some banks insist the theft or loss should be reported within 24 hours for the facility to kick in, some allow up to 15 days.

While zero-liability as a policy is in countries like the US, in India it is not so. The Reserve Bank of India has indicated it would like to introduce a system whereby the customer would not be held liable in case of fraud transactions. But there has been no further guideline or further instruction from the regulator.

Saturday, October 19, 2013

Banks yet to cut debit card fee at fuel pumps - Rupay Card News

A year after the Reserve Bank of India (RBI) announced a cut in charges on debit card transactions, banks continue to impose a fee of 2.5% for payments at petrol pumps, thereby making an undue gain at the cost of the consumer. Earlier this month, large banks thwarted an attempt by the RBI-promoted National Payments Corporation of India (NPCI) from capping charges on debit cards that are part of NPCI's Rupay network.

Last year, RBI asked banks to cap the charges on debit card transactions at 0.75% for transaction values up to Rs 2,000 and 1% for larger transactions. But in debit card transactions at petrol pumps, banks continue to impose a 2.5% surcharge, which are mostly passed on to the consumer.

Sources said that NPCI had sent a communication to banks asking them not to charge more than 1% on its Rupay cards. Rupay cards were introduced by NPCI as India's answer to MasterCard and Visa. Sources said that the move has been stymied by banks who have called for more discussion on the issue.






 
The 2.5% surcharge has its origins in the days when credit cards were in their infancy and debit cards non-existent. Typically, when a bank installs a credit card swipe machine at a retail outlet, its agreement with the merchant bars any kind of surcharge being passed on to the customer.

But in the case of petrol pumps and Indian Railways, an exception was made allowing them to pass on the charges (described by banks as 'merchant discount rate'), to the customer. The exception was made to end an impasse where these government entities were refusing cards on the grounds that their margins were too low to absorb the credit card charges of 2.5%.

RBI, while slashing charges on debit cards, had used the rationale that the transaction cost of credit and debit card should not be identical. This was because credit card transactions required the bank to provide free credit to the customer until the monthly bill was issued. The bank also took on the risk of the customer defaulting on his obligations.

In debit cards, the money goes straight out of the customer's bank account and the only expenses are on account of using the network and in respect of security of transaction. In the West, regulators have already started capping charges on debit card transactions.

Bankers say that a huge transformation is taking place in payments as debit card transactions are set to outstrip payments by credit cards in coming years. In July 2013, banks saw 4.23 crore credit card transactions as against 5.24 crore debit card transactions. In value terms, however, credit card transactions continue to be higher at Rs 11,038 crore as against Rs 7,722 crore under debit. With the focus now on financial inclusion, the number of debit cards and set to go even higher.

Tuesday, October 8, 2013

Punjab government plans to pay farmers directly using Rupay Cards

With paddy arrivals yet to pick up across Punjab, the state government now plans to make direct payments to farmers. The move is aimed to protect farmer's interest particularly the small and marginal from being exploited by the commission agents/arthiyas.

The issue of direct procurement and payment to farmers had been delayed for several years with both the Congress ruled and Akali-BJP government not keen to upset the strong lobby of arthiyas. Even with the new system the arthiyas would still continue to handle the grain and get 2.5% commission from the state government.

The government is also expecting a few progressive farmers only to register to the market committee for direct payments this season. Apart from Punjab, Haryana and parts of Rajasthan, government procurement agencies across the country make direct payment to farmers through cheques and also electronically.
"This paddy season we have started the system where we are giving direct payments to farmers," said Punjab Food Minister Adesh Partap Singh Kairon. Over 13.5 million tonne of paddy will be procured by government agencies worth Rs 18,000 crore.

A government official while giving details said that as on date 679 farmers had registered with the mandi board to avail direct payments. "A farmer can register with the market committee in their area, who will provide them a number to be submitted to 14 approved banks. The banks where the farmer should have an account will issue farmers the 'RuPay' card," said the official.

As per the Punjab government, there are 12 lakh farmers in the state with over 25,000 registered arthiyas/commission agents. For years, central and state agencies procuring wheat and paddy, have been issuing cheques to firms operated by arhtiyas for onward payment to farmers. The Food Corporation of India (FCI) has been proposing to directly procure and make payments to farmers.

It had earlier made few attempts in 2010 and 2011, but had to withdraw it in few days. PP Singh, director procurement, FCI said that a farmer must get price for his produce and it should be though account pay checque or by e-mode so that agencies were able to establish a trail of payments.

"A weak system leads to distress sale and farmer needs to be protected from arthiyas," he said. Farmer union leaders say that the proposal has recently been announced and not many farmers would be able to avail the scheme. "We will make sure it is a success during the wheat procurement season," said Ajmer Singh Lakhowal, president of the Punjab unit of Bharti Kisan Union and chairman of the Punjab Mandi Board.







Lakhowal said that slowly they would push government or agencies like FCI to directly procure grains from farmers. "Initially we expect progressive farmers to register followed by others. The farmers will not have to wait for arthiyas to give payments which lag from 15 days to few months. Nor will the arthiya be able to cut payment of farmers," he said.

Chairman of the Bharat Krishak Samaj (an association representing farmers interest), Ajay Vir Jakhar said that the success of the direct payments would take few seasons. "Farmers have to be persuaded to have bank accounts and even educated on the benefits of electronic transfers," he said.

Friday, October 4, 2013

Uttarbanga Kshetriya Gramin Bank - RuPay Debit Card Details

RuPay Debit Card

We are pleased to introduce you Uttarbanga Kshetriya Gramin Bank RuPay Debit Card which provides you anywhere, anytime banking facilities. Having this card in your wallet is like carrying your bank account with you wherever you go. This card comes with enhanced security feature as it is a PIN based card i.e. PIN is mandatory in order to perform transactions* at Merchant Establishment (POS) and ATMs.

Your Uttarbanga Kshetriya Gramin Bank RuPay Debit card entitles you:
  • Rs. 40000.00 daily ATM cash withdrawal limit
  • Uttarbanga Kshetriya Gramin Bank RuPay Debit card enables you to access over 2000+ Central Bank / Uttarbanga Kshetriya Gramin Bank ATMs spread across the country. You can also use your Uttarbanga Kshetriya Gramin Bank RuPay Debit card at 1,00,000+ ATMs under NFS network in India. Presently, this card can be used at select Merchant Establishments (POS) displaying RuPay logo.
  • 24-Hour Customer Service: You can contact our Toll Free No. 18002001911/1800221622 round the clock for any assistance regarding your Uttarbanga Kshetriya Gramin Bank RuPay Debit card.
 * Transactions at Merchant Establishments have not started yet.

On receipt of your card, please:
  • Sign on the signature panel at the back of your card to prevent any misuse of the card
Fees and charges*:
  • Issuance Fee: NIL
  • Annual Fees: NIL
  • Duplicate card on account of loss of card: Rs. 200.00
  • Card Replacement fee: Rs. 200.00
  • PIN Replacement fee: Rs. 50.00
  • Hot-listing of card fee: NIL
  • Transaction charges at Uttarbanga Kshetriya Gramin Bank/Central Bank of India ATMs: NIL
  • 5 transactions (Financial & Non-financial together) free on other bank ATMs for Savings Bank account holders, in a calendar month. 6th transaction onwards a flat charge of Rs. 18.00 (inclusive of service tax) will be levied to customer’s account.
* All fees and charges are inclusive of service tax.

Eligibility criteria: (Please choose from the below list or add more eligibility points)

The eligibility criteria for RuPay Debit card is:
  • Literate Individual Account holders having their A/Cs (Only SB, OD and NF A/Cs) with us. 
Debit Cards cannot be issued under following conditions:
  • Account types with operating instruction other than of “self”, “Either or Survivor” or “Sole Proprietor”
  • Visually impaired persons holding account jointly.
Added features on RuPay Debit card: (Please choose from the below list or add more features)

  • Loss or Damage of the card: In case of loss or damage of the card, please inform the branch as well on the Toll-free No. 18002001911/1800221622 immediately so that the card will be blocked to ensure safety of your funds.

Thursday, August 8, 2013

NPCI launches chip-based debit cards for improved security

With the aim of providing better security to card holders, payment service provider National Payments Corporation of India (NPCI) has rolled out chip-based debit cards under the RuPay brand.
The chip card has to be inserted into the machine so that the user can key in a unique PIN to complete the transaction, which enhances the security level. The chip cards are based on international specifications that provide protection to banks and customers against card skimming and counterfeiting frauds, NPCI said in a statement. 

Bank of Baroda and Saraswat Co-operative Bank are the first two banks to issue these cards.
The card will be accepted at all channels including ATMs, point of sales (PoS) machines, e-commerce and now EMV (card standard developed by Europay, MasterCard and VISA) chip and pin cards across the globe. 

A. P. Hota, Managing Director and CEO, NPCI, says, “RuPay, a benchmark card scheme of NPCI, offers both modes of chip card — full EMV issuance and quick EMV issuance that will offer all the safety measures required of a next-generation card payment system.” 

Most banks are likely to opt for Quick EMV issuance of the RuPay card as there is no additional fee prescribed in it and also to meet the deadline of November 30 as prescribed by the Reserve Bank of India, to be issued by banks to all customers opting for international cards. Additionally, the Quick EMV option requires minimal changes at the banks’ host system to be borne by lower cost. Whereas, full EMV issuance entails higher cost and a much longer time, the company said.