Khyati Dharamsi

Mumbai: Are you unhappy with the credit card you have been using, or that pre-approved card some bank has sent you?

Wish to surrender the card at the earliest?

Don’t just dump the credit card back on the person who brings the next courier from the bank. Neither should you dump it at the bank’s ATM drop box facility.

Go through the points listed below before surrendering the card so you don’t end up being asked to pay up dues you don’t owe them on a future date.

Onus is on you

Remember, the responsibility for any misuse arising out of an unsafe surrender of a card lies with the cardholder. You can’t get away claiming ignorance of this as it is usually mentioned in the form or the usage guide, or the list of important terms and conditions the bank sends you along with the card.

If you have thrown these away or can’t trace them, ask for a copy of the same from the bank branch. Most bank websites also list out the important terms and conditions.

Also, most of the banks mention the post box address to which a surrender request is to be sent. Note the address mentioned on your credit card kit.

Destroy the card

Though the bank asks for the credit card along with the request for surrender or termination of a card account, don’t just put the credit card in the envelope as it is. The card has to be destroyed in a manner that no one can misuse it till it reaches the proper bank authority, not to mention the bank officials themselves. Just cut into multiple pieces.

HSBC Bank states in its credit card service guidelines, “If you wish to surrender your credit card to the Bank, please ensure that you cut the credit card into several pieces through the magnetic stripe before surrendering the same. If the credit card is surrendered without cutting into several pieces, you shall remain liable for any misuse that takes place subsequent to the credit card being surrendered to the bank. This applies to any method, mail, personal handing over that is used to surrender the credit card.”

SBI Cards advises the user to cut the card in half diagonally and send it to the firm along with full settlement of all outstanding on the card account.

ICICI Bank advises cardholders to cut the card into four pieces, ensuring the hologram and magnetic stripe is destroyed permanently.

The magnetic stripe is the black stripe running horizontally on the back of your card, which contains your entire data. Destroy the stripe and you ensure nobody can use it for encashment at ATMs or shops.

This also applies to the many unwanted cards that arrive at your home without you having asked for one. Never decline a pre-approved credit card.

If you are not going to use it, inform the issuing bank; and always cut across the magnetic stripe of the card before discarding it, read the card safety notes on several bank websites.

Request a termination

Any request for termination of a card must be made through a letter stating the 16-digit credit card number along with the destroyed card. As Subrat Pani, head of credit card division at Kotak Mahindra Bank says, “Just destroying the plastic is not enough. You need to inform the bank that you are not going to use the card. You need to close the account as well to avoid getting statements and renewal card at a later date,” he adds.

So, call up the customer care or the helpline number of the bank that has issued you the card, and ask the executive to deactivate your card.

Ensure that the account has a zero balance because the account cannot be closed unless the dues are cleared.

Do also inform the call centre person before you send the letter to the suggested post box address.

Despite all this, chances of a leakage or misuse remain. Hence, keep an eye on the credit card statements even as you follow up the termination request with the bank till such time they have written to you stating your request has been accepted.

Protect PIN & CVV

Make sure you don’t give away the personal identification number (PIN) or the card verification value (CVV) code while packing off the letter and the destroyed card.

The CVV code is the only number asked for while shopping online. For Visa and Mastercard, the three-digit CVV number is printed on the signature panel on the back of the card immediately after the card’s account number, while for American Express, the four-digit CVV number is printed on the front of the card above the card account number.

“The call centre may also ask for the card number and CVV number. But, there should not be a risk of the call centre using your information,” adds Pani.

But, the delivery boy doesn’t belong to the bank. Hence, never hand over the consignment containing your credit card back to him.

Source : DNA