What is ‘POS’ on my bank statement?
A POS transaction means you paid a merchant at a physical counter or online checkout using your debit or credit card. It stands for Point of Sale.
How it can look (made-up examples)
POS 4XXXXXXXXXXX1234 EXAMPLE MARTPOS PRCH 12/10 SUPERMARKETPCD/1234/EXAMPLE STORE/MUMBAI
What it is
A Point of Sale (POS) transaction is a payment made by a customer for goods or services at the point of purchase, such as a physical store or an online platform, using payment methods including debit or credit cards.
Who charged you
A merchant or business where you made a purchase or availed services at a physical point of sale or online platform.
How to find out what it was
- Check the printed physical receipt issued at the time of purchase or cash withdrawal by the PoS terminal, which records the transaction details.
- Review SMS or email notifications sent by your card issuer, which contain details such as the merchant name, transaction amount, date, and time of debit.
Is it recurring? How to stop it
- Report unauthorised transactions immediately to your bank through 24x7 channels including website, phone banking, SMS, email, IVR, toll-free helpline, or your home branch.
- Lodge a grievance with your card issuer, and escalate to the Reserve Bank - Integrated Ombudsman Scheme if the issuer fails to respond within the stipulated time or provides an unsatisfactory reply.
- If the debit is related to a recurring card e-mandate, you can opt out of a transaction upon receiving the pre-transaction alert or withdraw the e-mandate via your issuer's online facility.
Step-by-step guides:
- How to cancel recurring payments on a credit or debit card
- How to cancel standing instructions on an HDFC Bank card
- How to cancel standing instructions on an ICICI Bank card
- How to cancel standing instructions on an SBI Card
What it costs
Charges differ by bank and change over time. What the sources say:
- Acquirer banks: Charges levied on cash withdrawals at PoS terminals cannot exceed 1% of the transaction amount.
- Card issuer banks: No charges can be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions.
Your own bank’s schedule of charges has the current figure.
Think this charge is fraud?
- Block it now in your bank app: freeze the card, or turn off the UPI ID or mandate that was used.
- Tell your bank straight away, through the app, net banking or its customer care, so the transaction is on record.
- Report the fraud: call the national cyber fraud helpline 1930, or file a complaint at cybercrime.gov.in.
Good to know
- If an unauthorised transaction occurs due to third-party breach, the customer has zero liability if reported within 3 working days; reporting within 4 to 7 working days caps customer liability between ₹5,000 and ₹25,000 depending on account type, and beyond 7 days liability is governed by the bank's Board approved policy.
- If loss occurs due to customer negligence such as sharing credentials, the cardholder bears the entire loss until the unauthorised transaction is reported to the bank.
- Credit cards are not permitted to be used for the cash withdrawal facility at PoS terminals, and withdrawals with permitted cards are capped at ₹2,000 per transaction and ₹10,000 per month.
- The bank must resolve customer complaints regarding unauthorised transactions within a maximum period not exceeding 90 days from the date of complaint receipt.
Questions people ask
Why was I charged a POS debit?
A merchant charged you for goods or services you purchased at a store or an online platform using your card. Check your printed PoS terminal receipts or the SMS and email messages from your card issuer to match the merchant name, amount, date, and time.
Will a POS charge recur automatically?
No, standard POS payments do not repeat automatically. If the entry is part of a recurring card e-mandate, you can withdraw the e-mandate using your card issuer's online facility or opt out before the transaction is processed.
Is an unfamiliar POS transaction fraud?
It may be an unauthorised payment or a store name you do not recognise on your statement. Report any unauthorised transaction to your bank immediately through their website, phone banking, SMS, email, IVR, helpline, or your home branch.
Can I get a refund for an unauthorised POS charge?
Yes, if you report a third-party breach within three working days, you have zero liability. If reported between four and seven working days, your liability is capped between ₹5,000 and ₹25,000 depending on account type, and the bank must resolve the complaint within 90 days.
How do I dispute a POS transaction?
Lodge a formal grievance with your card issuer through their website, customer service channels, or home branch. If the bank fails to respond within the stipulated time or gives an unsatisfactory reply, escalate the matter to the Reserve Bank - Integrated Ombudsman Scheme.
Are there extra fees on POS transactions?
Card issuers cannot charge you for availing an e-mandate facility on cards. If you used a PoS terminal to withdraw cash, the acquirer bank charge cannot exceed 1% of the amount, with withdrawals capped at ₹2,000 per transaction and ₹10,000 per month.
Last checked on against rbi.org.in, hdfc.bank.in, rbi.org.in, rbi.org.in (official). Statement formats differ by bank; the examples above are made up to show the shape.