When is it worth opting for a credit card protection plan?

Credit cards are among the most common and secure forms of payment at POSs or online shopping. However, if you lose your credit card or debit card, you may suffer financial losses due to card fraud. If you lose your credit card, you need to take immediate action. A credit card protection plan (CPP) is a scheme designed to protect your finances in case of such a loss. Let us understand what CPP is and its benefits.

What does a credit card protection plan (CPP) mean?
 

A card protection plan is typically an insurance scheme that secures your credit card or debit card from financial loss if you lose your cards. Similar to other insurance plans, you can avail of a CPP by paying a nominal premium usually paid on an annual basis. In addition to credit card security, you also get protection for other cards and sensitive documents such as PAN cards, debit cards etc.  

Among other features, a card protection plan also offers instant card blocking through a phone call, emergency assistance during travel, and more. When you opt for this protection scheme, the premium is usually included in your annual membership charges.

All credit card issuers focus on providing adequate security for your credit card transactions and payments. IDFC FIRST Bank is well-known for its complete control over credit card expenses. You can block your card instantly using the mobile app in case you lose your card. Also, you can set limits on online and POS transactions so that no unauthorised transactions take place. In addition to immense security, you can also get numerous rewards and offers on these cards.

What are the benefits of card protection plans?
 

A card protection plan is just like an insurance scheme for your credit card and debit card. It comes with numerous features and benefits to secure you from card fraud and losses. Here are some common benefits of card protection plans.

• Comprehensive protection against card losses and fraud
  
  A card protection plan comes with comprehensive protection against theft and loss of your credit or debit card. Whether you lost your card, faced an unauthorised transaction, or are a victim of card fraud, a CPP secures you from any financial losses.
• An additional layer of protection
  
  Credit cards and other electronic payment tools come with numerous layers of security such as chip and pin, fingerprint scanners, and password protection. A CPP acts as another layer of protection for your finances.
• One plan for all your cards
  
  You can include several credit cards/debit cards in a single card protection plan and reduce the hassles of multiple premium payments.
• Instant card-blocking facility over phone call
  
  Since all your cards are secure through one plan, in case you have lost your wallet which holds more than one card, you can call your CPP provider and block all your cards with just one call. Using this facility, you avoid the hassles of calling different credit card issuers.
• Assistance for card replacement and emergency cash assistance during travel
  
  The insurer also assists in replacing your lost card as an additional benefit. It also offers emergency cash assistance during your domestic or international travel.
  
  Securing your credit cards with a card protection plan can provide you with financial security in case you lose your cards or are a victim of credit card fraud. They come with comprehensive card protection to offer you complete peace of mind while on the go.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.