Siddartha Karnani Comments on Consumer Rights and Redressal for Disputed Credit Card Charges

Siddartha S. Karnani, Partner at King Stubb & Kasiva (KSK), was quoted in Business Standard in an article examining the options available to consumers when disputed credit card charges are rejected and the steps they can take to seek redress.

Commenting on the issue, Siddartha emphasised the importance of promptly reporting suspicious transactions, maintaining documentary evidence and following up with the card issuer in writing. He noted that card issuers are required to investigate complaints and cannot hold customers liable for disputed transactions without evidence of negligence. He advised customers to preserve all correspondence, follow-up reminders, relevant advertisements and web pages, as well as evidence demonstrating that they did not share their one-time passwords (OTPs). He also clarified that filing a cybercrime complaint does not replace the need to report the transaction directly to the card issuer.

Siddartha further explained that the extent of a customer’s liability depends on when the transaction is reported and the circumstances of the case. Reports made within four to seven working days may attract capped liability, while later reports are governed by the issuer’s board-approved policy. Where an issuer establishes that a customer knowingly shared their credentials, the customer may be liable for losses incurred before reporting; losses arising after notification generally fall on the issuer, subject to the applicable regulatory framework. He also highlighted the importance of monitoring subsequent statements when a disputed amount is credited back to the account. Such a credit reduces the outstanding balance and restores the available credit limit by the same amount. The credit becomes permanent if the issuer cannot establish customer negligence, but may be reversed if negligence is proved, leaving the customer liable for the amount.

Read the full article here: https://www.business-standard.com/finance/personal-finance/disputed-credit-card-charge-rejected-know-your-options-to-seek-redress-126101401281_1.html 

Last Updated on 23 October, 2026