In today’s digital banking era, debit, credit, and prepaid cards play a vital role in our daily financial transactions. Many of us jokingly call them plastic money, but nowadays, it’s not just plastic, metal cards are also common.
One of the most routine yet critical issues in card usage is card replacement. Whether a card is lost, stolen, damaged, or expired, the replacement or reissuance process is a standard and essential banking practice. According to international banking practices and universal standards, this process follows several key principles and steps.
Types and Cases of Card Replacement
▣ Replacement for Lost or Stolen Cards
Banks usually issue a new card immediately in such cases. Customers are required to block the lost card for security purposes.
▣ Replacement for Damaged or Broken Cards
This type of replacement is often free of charge, particularly if the damage is caused by natural wear and tear.
▣ Automatic Replacement for Expired Cards
Most banks issue and deliver a new card automatically several weeks before the old card expires.
Situations Where Card Replacement Doesn't Apply
▣ When a customer voluntarily and permanently closes their card according to bank policy.
▣ When a customer migrates to another product or card category.
▣ When the bank or financial institution discontinues the card product itself.
International Standards and Practices
According to ISO/IEC 7810, 7811, and EMV standards:
▣ Replacement cards must meet international requirements for size, chip, magnetic stripe, security codes, and logos.
▣ New cards generally include EMV chips and contactless technology to ensure safer transactions.
▣ If there are recent security upgrades or new technological features, these must be included in replacement cards.
Customer Verification and Security Process
▣ Customer identity verification is mandatory for replacement requests. Verification can be done through call centers, mobile apps, or online banking platforms.
▣ International practices include OTP (One-Time Password), PIN, or biometric verification, depending on the bank’s security policy.
▣ Banks provide 24/7 support for unauthorized card block and fraud reporting.
Delivery and Activation
▣ Most banks ensure safe delivery through secure courier services or direct door-to-door service.
▣ Card activation is typically done via online banking, ATMs, or customer service hotlines.
Timeframe and Charges
▣ Internationally, lost or stolen card replacements typically take 5–10 business days, though this may vary by country or region. Some banks also provide instant, non-personalized cards at branches.
▣ Damaged or expired cards are usually replaced free of charge or with a minimal fee. In the case of expiry, customers generally do not incur any additional fees.
Cybersecurity and Precautions
▣ Customers are advised never to share PINs or CVV codes. Banks may also provide a usage guide or safety manual during delivery.
▣ Banks conduct online fraud monitoring during the replacement process to ensure customer safety with the new card.
Customer Benefits and Modern Trends
▣ Contactless/NFC-enabled replacement cards allow faster transactions.
▣ Automatic SMS/Email notifications keep customers updated throughout the replacement process.
▣ Customer contact and security details are carried forward to replacement cards.
Customer-Initiated Card Surrender
If a customer voluntarily surrenders a card, meaning it is not lost or damaged, the bank deactivates or cancels it permanently. The old card can't be reused. Later, if the customer wants another card, the bank issues a fresh card with a new number, CVV, and expiration date.
According to international banking practice, this isn't considered replacement since the previous card is no longer active.
Why do Banks charge for new Cards?
When a customer voluntarily surrenders a card and later requests a new one, the bank may charge an issuance fee. This fee typically covers:
- Administrative costs
- Delivery expenses
- Security checks
- System maintenance
However, charging both a replacement fee and a new issuance fee for the same customer isn't aligned with international banking practice. Doing so creates unnecessary financial burden and doesn't comply with “value for money” principles.
Legitimacy of Charges on Reissued Cards
If a bank imposes additional replacement charges on voluntarily surrendered cards, it is generally not acceptable under international standards. Only administrative or delivery costs are justifiable. Imposing extra penalties or duplicate fees is considered unfair to customers.
Critical Analysis of Bank Policies
Some banks justify replacement charges by arguing that since the customer had previously used a card, their history remains in the system, and therefore a new card counts as a “replacement.”
International Practice
▣ Replacement charges should only apply to lost, stolen, or damaged cards.
▣ A voluntarily surrendered card shouldn't be treated as a replacement.
▣ A fresh issuance must be considered a new product, not linked to the previous one.
Customer Impact
▣ Customers face an unfair financial burden.
Violates the value-for-money principle.
Policy Problem
▣ Overly rigid reliance on system history.
▣ Treating fresh cards as replacements results in double-charging customers.
▣ Customers end up paying twice, first for the original system cost, then again for the new card issuance.
So, Under international banking standards, when customers voluntarily surrender their cards, banks may charge only reasonable administrative or delivery costs for a new issuance. Applying replacement fees in such cases is unjustified.
Strict enforcement of rigid policies increases unnecessary financial stress on customers, which negatively impacts both customer satisfaction and bank trustworthiness.
In short, card replacement is a standardized process in international banking, ensuring customer protection, security, and convenience. Banks must follow global best practices in verification, delivery, and technology to safeguard financial transactions and maintain customer confidence.