Bank card: is insurance essential?

The credit card has become for several years the preferred means of payment of the French. Easy to use and compact, it benefits in particular from the explosion of contactless payment and online payments. Indispensable on a daily basis, they are also the subject of increasingly reinforced security, to fight against fraud which costs around half a billion euros each year. To do this, there are insurance policies to cover customers in the event of a bad surprise.

Why take out credit card insurance?

Subscribing to a banking contract imposes on establishments a series of mandatory measures to ensure the financial security of their customers in the event of card theft or theft of bank data, enacted in article L133-19 of the Monetary and Financial Code . These measures, such as the reimbursement of sums stolen after opposition, are however limited: if it is proven that the sums were stolen with the help of the confidential code of the card, a deductible of 50 euros applies if the total amount also exceeds 50 euros. If the customer’s responsibility is recognized, the bank may also reserve the right to refuse reimbursement of any sum withdrawn before the opposition. For several reasons of this kind, it is therefore sometimes necessary to resort to specific insurance for your bank card.

Means of payment insurance

This insurance responds to the name of insurance of means of payment: it is a contract taken out directly with your bank with the support of an insurer partner, in return for a modest contribution. This amounts to an average of 30 to 35 euros per year, but the amounts vary according to the establishments. The initial contract is spread over a period of one year and is automatically renewed each year by tacit renewal. It is therefore up to the customer to take the steps themselves in the event of termination, but the latter can be done at any time and completely free of charge, provided that the legal notice period stipulated in the contract is respected. Contrary to what its name suggests, means of payment insurance does not necessarily take into account all the means of payment offered by a bank, but mainly bank cards and checkbooks.

What guarantees cover the insurance of his bank card?

Means of payment insurance takes over as soon as the card is blocked, which must be done within five days after the theft has been discovered. Its guarantees vary from one contract and from one establishment to another, but they often include the same basic advantages. Means of payment insurance thus allows reimbursement by the bank of opposition costs as well as the deductible of 50 euros mentioned above. It also allows the reimbursement of the renewal costs of many other official documents, such as identity card, passport or driving license. It also ensures recourse to legal assistance in the event of legal proceedings, and sometimes the reimbursement of cash stolen following a theft with aggression from a distributor, if this is declared within 48 hours. The maximum compensation limit is theoretically unlimited, but it is common for banks to cap them, whether for a single claim or for a series of incidents over a full year.

(By the editorial staff of the hREF agency)

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