Despite advances in technology and artificial intelligence, credit card fraud remains common worldwide, and India is no exception.
Fraud often occurs with international transactions because many of them bypass two-factor authentication.
While chargebacks are an option, evidence shows they are not always honoured as expected.
Lately I’ve seen several fraud cases among people I know, so I’m sharing a summary of recent incidents to highlight how these disputes unfold.
Below are a few cases from 2020 and how they progressed:
Table of Contents
- Axis Bank Credit Card
- ICICI Bank Credit Card
- Standard Chartered Credit Card
- Final Thoughts
Axis Bank Credit Card
A close friend discovered multiple foreign currency charges totaling around 50,000 INR on his Axis Bank credit card.
Axis Bank requires a copy of the FIR to initiate a dispute, which complicates the process.
That requirement can make cardholders feel it’s easier to absorb the loss than to navigate the legal process of filing an FIR.
Fortunately, in this case the cardholder had contacts who assisted with filing the FIR and pursuing the dispute, and he eventually received a refund.
Moral: If you hold an Axis Bank credit card, consider disabling international transactions and only enable them if absolutely necessary.
ICICI Bank Credit Card
A colleague of another friend was charged about 40,000 INR for transactions at Walmart, USA.
Despite raising a dispute and escalating the matter to the banking ombudsman, the bank did not immediately reverse the transactions.
ICICI initially provided interim credit but later withdrew it after deciding in favour of the merchant.
Ultimately, the cardholder obtained a refund after engaging a lawyer, filing an FIR and repeatedly communicating with both the bank and the Reserve Bank of India.
However, interest accrued on the disputed amount was not waived because the cardholder had not continued scheduled payments during the dispute period.
Moral: Be persistent and use every available channel when disputing fraudulent charges. Multiple escalations and supporting documents can increase your chances of success.
Standard Chartered Credit Card
I’ve heard of numerous fraudulent international transactions on Standard Chartered cards, with cases increasing in 2020.
One reader, Vaibhav, and several of his acquaintances reported large fraudulent charges on sites like dmarket.com, totaling several lakhs.
Their documented details were shared with me, showing a pattern of international fraud and difficulty obtaining timely resolutions.
Responses from Standard Chartered often felt automated and unhelpful, making dispute resolution frustrating for customers.
Previously, customers could not disable international transactions on Standard Chartered cards, but in early 2020 the bank added an option to disable them via internet banking or customer service.
Moral: Take advantage of the new option to disable international transactions on Standard Chartered cards if you don’t need them. It reduces exposure to international fraud and saves on higher markup fees.
Final Thoughts
These cases show that chargebacks are not a guaranteed safeguard. Outcomes depend on the issuer, the merchant, and persistence in pursuing the dispute.
Disabling international transactions is one of the most important steps you can take when you receive a new credit card.
If you need to use your card for foreign payments regularly, enable international transactions selectively and set a low limit to limit potential exposure. That way, if a dispute ends up favouring the merchant, your loss is capped.
If you or someone you know has experienced credit card fraud recently, please share your experience in the comments. More reports will help identify which issuers are harder to work with and which are more responsive.