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L.N. Revathy

FACE it, the efficacy of the credit card service in India isn't really the best in the world. But does that mean you surrender the card and deny yourself the advantages of using the plastic card?

Not at all. Just as you don't lock yourself at home to avoid trouble or a road mishap, you don't impose a blanket ban on the use of the credit card, if you have one, for there is no meaning in keeping it in a locker for safe custody and paying the annual subscription.

While there are some who love to flaunt the card, there are others who keep it under lock and key. Rathnam for instance, falls under the latter category. He uses the card sparingly. When not in use, it will not find a place in his wallet but will lie in his cupboard.

Despite these precautions, one fine morning, Rathnam found to his utter dismay that his account was overdrawn. Cash withdrawals of which he was totally in the dark were charged to his account. Rathnam claims that he is not in the habit of withdrawing cash from the automated teller machines, and the entries were mistakenly debited to his account.

Says Rathnam, "I am an old timer. I use the card sparingly and only if there is an absolute need for it. I have not ever withdrawn cash from the ATM. Yet these entries appear in my account statement." After fighting it out with his credit card service provider, Rathnam was able to convince them that the entries did not pertain to his account and they were reversed. But his pleasure was short-lived.

He was informed that the disputed amount would be debited to his account as the log received by the service provider was full proof for the cash dispensed in transaction. Rathnam sought evidence.

In search of evidence

It was at this point that certain obvious facts were brought to life. Rathnam was unable to move the court, as there was no evidence to prove that he was innocent. He contended that while the banks safeguarded their position, they did not bother to ensure that the customer's interest was well protected. He pointed out that there was no way to ascertain the genuineness of a transaction.

He approached the Coimbatore Consumer Cause to seek support. When they probed into the issue and sought evidence such as file pictures from the closed circuit television for proof of withdrawal from the ATM, they were told bluntly that it was a private document, and for bankers' use only. Later, they were informed that the images could be obtained for transactions that took place within the last fortnight, as it was unviable to store images for longer periods. So, the search for proof of withdrawal by Rathnam made no headway.

Considering that such occurrences were not a one-off case in point, the Vice-President of the Coimbatore Consumer Cause, Rajkanth, argues that banks should ensure that the card-holder is not put to unnecessary hardship. He suggests that banks should introduce a micro-encoder, which could sense and record the date and time of swiping the card.

"This record cannot be tampered with and the transaction cannot be disputed, for the card has been swiped," he points out. Apart from the micro-encoding strip, the CCTV would help strengthen the argument, especially in spotting impersonation, in the event of the loss of a card. "What is the use of storing an image for just 15 days, when the statement is prepared at monthly intervals?" he asks.

While banks revel in technology advancements, Rathnam is unable to grapple with the situation.

Technology alone cannot be blamed. Its uniqueness can be appreciated only if the loopholes are plugged.

lnr@thehindu.co.in

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