What is a Card Protection Plan? – Know more about how to protect your debit and credit cards

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Prior to the digital spring take over, debit and credit cards have been a fundamental part of eliminating hassles that arise with payments by cash. The debit and credit cards, PAN cards, loyalty/membership cards, etc. are all part of one’s wallet now. Misplacing or losing these cards means there is a high risk of them being misused. In the case of such times, the cardholder requires to block the card instantly and later apply for a new one. Also, credit and debit card scams are quite common these days, hence it is necessary to shield this plastic money from extortion and fraud.

Availing for a Card Protection Plan (CPP) proposed by various banks is one of the ways to ensure the safety of your debit and credit card. A card protection plan extends insurance cover upon any loss, theft, or fraud that has befallen on the cardholder in such circumstances. By having a CPP, the cardholder has one platform to contact to obstruct the card that has been lost or misplaced. It also assists apply for new ones.

The aforementioned plan is proposed by various providers like card protection plan companies, banks, and credit card companies including, SBI, ICICI Bank, Axis Bank, IndusInd Bank, Kotak Mahindra Bank. Most of the banks and credit card companies proposing CPP offer various security to the cardholder and the cost of the plans normally extends from Rs 1,600 to Rs 2,500 for a year.

Some of the fundamental features that are included include immediate blocking of lost cards in just one phone call, fraud protection, free replacement in the event of loss of PAN card, IMEI registration and SIM blocking service, emergency cash facility is provided, registration of valuable documents, registration service for mobile phone identifier, etc. But, these services differ from bank to bank. Some of these plans also provide emergency financial support during travel such as settling travel and hotel bills.

The card protection plan (CPP) takes effect from the date you make the payment, up to one year. In order to evade loss of cover, one can also choose an auto-renewal benefit at the end of the term. Analysts recommend comparing several card protection plans and the best advantages proposed as well as the appropriate pricing

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