Credit Cards

All You Need To Know About Blocking & Unblocking Your Credit Cards

Introduction        

Digital transactions have expanded in the country due to the COVID-19 pandemic. 

However, as digital transactions expand, the risk of fraud also surges.

According to a survey, banking fraud in India might increase in the next two years. 

Based on the reporting by public and private banks, the amount of loss due to cybercrime, including frauds involving ATM/debit card, credit card, and internet banking, grew to Rs. 63.40 crores in FY20-21 from Rs. 58.61 crores in FY19-20.

Blocking a credit card online is an excellent approach to guard against fraud and identity theft.

Cardholders can easily unblock their card when they need to use it by contacting the issuer. 

Moreover, they can reissue a new credit card by paying a minimal fee.

What causes credit cards to be blocked?

There are a variety of reasons why credit cards can be blocked, including the following:

1. Theft or loss

Theft or loss is one of the prime causes of blocking credit cards.

When a credit card is lost or stolen, the most common reason for blocking it is to prevent it from being used and to protect it from fraud. 

Furthermore, if the bank discovers any suspicious activity on the credit card, it may suspend it to protect the holder’s finances.

2. Irregular payments

If a bank discovers that a person has not been paying their credit payments on time, their credit card may be blocked.

Banks usually inform you if you are late in making payments on your credit card. 

They will also ask you to pay off the amount so that your card is not blocked.

3. Over Utilization of the credit card limit

Over Utilization of the credit card limit is another reason a person’s credit card is blocked by their bank. 

The bank may block the card and request additional information about these transactions from the customer to verify them before allowing them access to more money through this account.

4. KYC documents not received 

In some cases, the bank can also block a credit card because of KYC documents not received or incomplete KYC documents.

According to the RBI, all cards must comply with KYC criteria and submit the relevant documentation regularly.

Your credit card will be blocked if you fail to follow these steps.

How to block a credit card?

The following are the ways through which a cardholder can block its credit card: 

1. Online 

Follow the steps below to block the credit card online:

  1. First, cardholders must visit the bank’s website or download the bank’s mobile app.
  2. In the ‘Requests’ section, choose ‘Report a lost/stolen credit card.’
  3. Select ‘block credit card’ from the options that appear.
  4. The final step is to submit, which will result in the card being blocked.

2. Offline

To block a credit card, one can also use the offline mode. Cardholders can visit a bank branch, fill out a form, and submit it there. The card will be disabled shortly after that.

3. Customer care 

Further, by contacting the bank’s customer service department, a cardholder can swiftly block their credit card.

4. SMS 

To block your card, you can also send an SMS if you cannot call or the phone banking lines are too busy.

How to unblock a credit card?

There can be times when you have blocked your credit card but wish to unblock it.

A cardholder can easily unblock its credit card in the following way:

1. Online 

Follow the steps below to unblock your credit card online:

  1. First, cardholders must access the bank’s internet banking or mobile app.
  2. Apply for a reissue of a card by going to the ‘Requests’ tab.
  3. Authenticate now with a password or an OTP.
  4. The bank will process your request and issue you a new credit card once you submit it.

2. Offline

To unblock the credit card, cardholders can go to the bank, fill out a form, and submit the form there. The card will then be unblocked shortly after that.

3. Customer care 

Moreover, cardholders can swiftly unblock their Credit report check by contacting the bank’s customer care department.

Conclusion

A credit card is a sort of a loan that must be handled wisely; without financial discipline, a person might get trapped in debt and ruin their credit score.

Furthermore, lenders will turn you down or demand you a higher rate of interest on future loans if you have a poor credit score.

A credit card allows you to access many items more quickly, but it is also critical that you maintain it safe. 

Keep up with your bank’s online transaction notifications and frequently change your passwords/PINs.

Further, blocking a card as soon as possible helps minimize the harm and provides banks with a leg up in the investigation.

Thus, always be cautious when using a credit card to avoid fraud.

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