Working and Advantage of the Zero-liability card
In case of loss of the card and consequent illegal transactions being made on the card, such a card frees you of the liability in respect of the transactions made i.e. the issuing bank will no longer hold you responsible for such fraudulent transactions in case you were in possession of the zero-liability card.
Transactions undertaken at the point of purchase or at a retail merchant outlet are all covered under the scheme. And other online and ATM transaction which require the entry of PIN for the transaction do not form the part of the scheme. However, the benefits associated with the card can only be availed subject to certain conditions being fulfilled:
1. First the account for which the zero-liability benefit is sought in case of fraudulent transaction should be in good standing.
2. Such unauthorized transactions have not been reported very often and the benefit can only be availed only in case you have not registered 2 or more complaints in the last one year.
3. Also, you need to ensure that you protected the card with all possible efforts.
The major advantage that accrues out of holding such a debit or credit card is once the theft of the card is reported, financial institutions no longer place the obligation of any fraudulent transaction on the cardholder. And in case of any illegal ransaction, the amount is reverted back to the account holder in case of a debit card transaction.
Banks offering Zero-liability cards in India
Some of the banks, including ICICI Bank, HDFC Bank, Standard Chartered Bank among others are offering debit and cards loaded with the zero-liability features. However, as banks have to pay an additional amount for insurance in order to cover the theft of the card, still many banks are not providing the facility. And unless your card issuing bank or financial institution provides the card loaded with this feature you cannot draw the benefit of the same.