When does a card get hotlisted?



When does a card get hotlisted?

Recently, I was purchasing some google domains through my debit card. Alright, so what? What happened is that just after the amount got debited from my account, I received a message that your debit card has been blocked. I didn't quite understand that what had happened and why am I receiving this message.

To make sure I logged onto the net-banking platform to check the status of my debit card. To my surprise, I saw that the status has changed from "active" to "hotlisted". Yes, even I got confused. After some research I understood what was going on. So what happens is there is a fraud identification department in the banks, which keep a track on the transactions that you incur from your debit card. If they feel that any suspicious transaction has been done, then they block your card by making it hotlisted. Sometimes your card can even get hotlisted by organisations like VISA or MasterCard in the same case of suspicious transactions.

Another scenario when your card can be hotlisted is in the case of theft. Sometimes people lose their wallet at some place or their debit card is stolen by someone and they realise it after few minutes or hours.

What to do when your card gets hotlisted?

Don't worry at all, when your card is hotlisted, you will receive a call from your bank's fraudulent activity department. Keep in mind that if you have done a transaction late night, then you might receive the call on the next day. The bank will only ask you if you were the one who had done the transaction. If yes, then your card will be re-activated but if not, then your card will be permanently blocked and you will have to apply for the issuance of a new debit card. The new debit card may come in 7 working days under normal circumstances.

Some banks however do not reactivate a hotlisted card i.e. once hotlisted, you will have to apply for a new debit card. In this case also, you should not panic because you will still have access to your net-banking facility and can utilise it to facilitate any transaction.

What about the money that gets debited from your account in case of theft?

Whenever you get to know that your card is stolen or some suspicious transaction has taken place from your debit card then in that case do not fail to report the same to the bank within 1-2 days or else the bank might not be able to get you a refund. When you report a theft, the bank gets some time (usually 10 working days) to investigate the matter and refund the balance in case some fraudulent activity led to the reduction in your bank balance.

What can you do to avoid huge losses?

When using a debit card, we all have a usage limit i.e. on a particular time you may be allowed to make a purchase of Rs. 2,00,000 domestically and around Rs. 5,00,000 internationally. For each individual this limit may be in excess of his daily usage requirement. Therefore, what you can do is use net-banking for big transactions and reduce this limit of Rs. 2,00,000 & Rs. 5,00,000 to some lower amount, so that when a fraud or theft happens, the amount of fraud can't exceed the limit set by you.

Thanks for reading!

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