Credit card users should pay their bills first and then lodge the complaint in case of a dispute with the card provider, said Banking Ombudsman (New Delhi) M Rajeshwar Rao.
This will protect them from the risk of paying more in case the decision is in favour of the card provider, according to Rao.
Customers should read terms and condition carefully so that disputes can be avoided, he said.
It is advisable, in case of credit card disputes, to pay the dues and subsequently file complaint against the credit card company, he added
If the bill is pending, Rao said, the customer always runs a risk of paying much more if the judgement is in favour of card provider.
The customer has to pay a high interest rate for the intervening period along with the actual bill amount.
While, if he pays before the complaint is lodged, there is no risk, Rao said.
He said the customer also needs to understand the billing cycle.
Besides, they should be conscious of the card's security, he added.
As per the existing provision, interest rate charged by the credit card company is not regulated by the Reserve Bank.
During 2010-11, all the Banking Ombudsmen across the country received as many as 66,927 complaints. Of this, 16,871 complaints were card-related, including ATM and debit cards.
The Banking Ombudsman Scheme, an alternate dispute resolution mechanism appointed by the RBI, deals with deficiency in the services by the bank and 27 services are part of the scheme.