How do you protect your money in current accounts at Georgian banks from fraudulent card transactions?

[Marie Manila]

Hi,

I recently discovered that debit and credit cards in most or all Georgian banks appear to be uninsured against fraudulent transactions.
The cards are usually linked to the current account.
Additional insurance is available at extra cost.

Let's focus on BoG for now. But the same applies to TBC Bank (and I suspect all the others).

Let's say you have 20,000 USD in your current account and have paid for the Premium insurance plan (the highest available, see attached image).
If someone uses your card to shop online, they can spend up to the card's limit of 50,000 GEL (around 19,000 USD).
The insurance only covers 2,000 USD for illegal internet operations. So 17,000 USD will be lost.

How can you prevent this?

Of course, you can freeze the card and unfreeze it each time before using it.But I have some recurring payments on my cards. So freezing and unfreezing is not an option.

How did you solve that problem?

 

[Marzio]

How can you prevent this?

Keep in the checking account only up to 2000USD

 

[JackAlabama]

Hi,

I recently discovered that debit and credit cards in most or all Georgian banks appear to be uninsured against fraudulent transactions.
The cards are usually linked to the current account.
Additional insurance is available at extra cost.

Let's focus on BoG for now. But the same applies to TBC Bank (and I suspect all the others).

Let's say you have 20,000 USD in your current account and have paid for the Premium insurance plan (the highest available, see attached image).
If someone uses your card to shop online, they can spend up to the card's limit of 50,000 GEL (around 19,000 USD).
The insurance only covers 2,000 USD for illegal internet operations. So 17,000 USD will be lost.

How can you prevent this?

Of course, you can freeze the card and unfreeze it each time before using it.But I have some recurring payments on my cards. So freezing and unfreezing is not an option.

How did you solve that problem?

How did you manage to keep your Georgian acocunts? Ive heard from multiple sources which had accounts shut for apparently no reason in what seemed to be a coordinated action.

But as already mentioned here, the solution is to keep only up to the insured amount in the account connected to the card while the rest is on a usd call deposit account or a time deposit.

 

[12345]

Set a tiny limit for online transactions

 

[Marie Manila]

How did you manage to keep your Georgian acocunts? Ive heard from multiple sources which had accounts shut for apparently no reason in what seemed to be a coordinated action.

Well, I don't know. No one contacted me and asked me to withdraw my money or close the accounts.
So, they are still active.

But as already mentioned here, the solution is to keep only up to the insured amount in the account connected to the card while the rest is on a usd call deposit account or a time deposit.

I've thought of that too, but fixed deposit accounts are automatically renewed with the same term. Termination is only possible in person, as you can read in this thread.
Do you know if it is easily possible to open a second current account online at the same bank with BoG (or TBC)?
I could not find any charges related to a second current account.

Set a tiny limit for online transactions

I could not find a way to do this in online banking (at least with BoG).

 

[blizz]

How did you manage to keep your Georgian acocunts? Ive heard from multiple sources which had accounts shut for apparently no reason in what seemed to be a coordinated action.

Maybe she / he is doing something legal where no reason was found to shut down the account

 

[JackAlabama]

Well, I don't know. No one contacted me and asked me to withdraw my money or close the accounts.
So, they are still active.


I've thought of that too, but fixed deposit accounts are automatically renewed with the same term. Termination is only possible in person, as you can read in this thread.

Yes they claim that, but you could do a cash recover loan to offset this.
Idk if it still works, a few years ago it was the case.

Do you know if it is easily possible to open a second current account online at the same bank with BoG (or TBC)?
I could not find any charges related to a second current account.


I could not find a way to do this in online banking (at least with BoG).

There is another option, which is a rolling deposit. You can topup and withdraw at any given time.
Afaik its called call deposit and not time deposit.

 

[backpacker]

've thought of that too, but fixed deposit accounts are automatically renewed with the same term. Termination is only possible in person, as you can read in this thread.
Do you know if it is easily possible to open a second current account online at the same bank with BoG (or TBC)?
I could not find any charges related to a second current account.

Plenty of options:

• Instead of a TD, open a CD. CD's have a fixed term and do not auto-renew.
• Instruct the bank to transfer nominal and interest on a "Technical Account". It is a separate stand-alone account with it's own IBAN. As the name says, it is purely technical. You can transfer to/from the account, but no cards will be attached.
• You can instruct the bank right from the beginning that you do not want to auto-renew a TD. This has to be done manually when opening, for each TD separately.
• Your card transactions are still protected by VISA/MasterCard ToS. A bit tricky and you will have to wait at least six weeks for the amount to be transferred back + will be asked for an enormous amount of documents. Do not expect the bank to be on your side.
• The card insurance they sell separately is a money printing machine. It is a private insurance and if you really need it you will find yourself burdened with almost as much trouble as by just going with VISA/MasterCard "protection". Read the fine print of their dubious insurance product and you'll be shocked.
• There is no fee for a separate "Technical Account".
• Should you be a BoG SOLO customer, a so-called Premium Deposit (complete joke with regards to the interest it pays) will do the same like a "Technical Account".

 

[meze99]

I wouldn't trust their insurance, in the end they will probably ask you to come personally in a branch to do the paperwork for a chargeback.
The best option is to disable online transactions in the app/internet bank and then enable them when you need it, or just enable dynamic CVV if the bank app supports it.

 

[JackAlabama]

I wouldn't trust their insurance, in the end they will probably ask you to come personally in a branch to do the paperwork for a chargeback.
The best option is to disable online transactions in the app/internet bank and then enable them when you need it, or just enable dynamic CVV if the bank app supports it.

Yes Id also expect that. It does not seem trustworthy at all.
Never forget them wanting me to come to branch during covid and their borders closed to break a time deposit . Luckily I found a way to avoid.

 

[Marie Manila]

Your card transactions are still protected by VISA/MasterCard ToS. A bit tricky and you will have to wait at least six weeks for the amount to be transferred back + will be asked for an enormous amount of documents. Do not expect the bank to be on your side.

That calms me down.
6 weeks won't be a problem for me.

In the Bank Service Agreement (at BoG) is written:

33. The Customer will be responsible for the payable amount, damage/loss as a result of unlawful use of the Card, until the Bank will be notified about the loss or theft of the Card, or about the Third Parties knowing Access Codes of the Card.​

So I thought Mastercard's T&Cs in Georgia do not allow chargebacks for fraudulent transactions.

Very confusing.

 

[backpacker]

That calms me down.
6 weeks won't be a problem for me.

In the Bank Service Agreement (at BoG) is written:

So I thought Mastercard's T&Cs in Georgia do not allow chargebacks for fraudulent transactions.

Very confusing.

The card company might act under it's global standard protection: That means cases where no PIN verification has been requested by the seller/POS/website/store/ATM and used/confirmed by you!
All other cases are your loss.

If you become a victim and want to recover your money, the bank will require your personal presence at the branch of account in order to sign forms. Moreover, they will want a notarized declaration.

Georgian banks have very weak security standards. For instance, they still rely on SMS codes and four-digit PIN.
In case you are not a resident of Georgia and/or have no personal connection to the country, better look elsewhere for decent banking!