What amounts to the activation of credit card? An explainer

Using a credit card, as we know, offers a range of benefits and rewards such as access to lounges, discounts on shopping and travel and dining. Before you even start using a credit card, it is imperative that you first activate it. 

As soon as you receive the credit card kit from the bank,  you would ideally be panicking as to what you need to do about it. At the outset, you need to activate the card to be able to use it. 

It’s no brainer, right? But how exactly can one do it?

Here, we explain the step-by-step process based on what process you opt for. You can activate your credit card through any of the four processes i.e. net banking, mobile app, through customer support or through offline channels.

Activate through Net Banking

1. Login to your internet banking

2. Look for the credit card activation option.

3. Enter your card details

4. Submit the OTP that you receive.

5. The process is complete.

Activate via Mobile App

1. Download the app

2. Login to app using PIN

3. Go to the cards or a related section

4. Select your credit card and enable transaction rights

Activate credit card through customer support

1. Call the bank’s customer support

2. Provide credit card details

3. Complete activation with their guidance

Activate your credit card offline

1. Visit the nearest credit card issuing bank’s branch.

2. Provide your card and ID

3. The bank’s representative will help you finish with the process.

How important is card activation?

Credit card activation is quite vital since it is seen as an implicit way of giving an approval.

The RBI directions dated March 7, 2024 on the issuance of credit cards highlight that a card should not be issued without a customer’s consent. So, a customer should not activate a card when it is sent without his consent.

“Card issuers are prohibited from issuing unsolicited credit cards and are required to seek prior and explicit consent from the customer before issuing a card. However, if the customer receives an unsolicited card, he/she should refrain from activating or providing consent for activation of card through OTP or any other means,” reads the RBI direction.

“If no consent is received for activating the card, the card-issuer is required to close the credit card account without any cost to the customer within seven working days from the date of seeking confirmation from the customer and shall also intimate the customer that the credit card account has been closed,” the direction further adds.

What is considered as credit card activation per the RBI directions?

The RBI directions point out that activation entails a customer-initiated process which indicates intent to use a credit card such as PIN generation, modification of transaction control, Interactive Voice Response (IVR), recorded call to the customer care centre and SMS.