Tax
& Business Alert – March 2022
366
words
Word count target: ~ 370-390
Abstract: It’s an
awful feeling to learn that your credit or debit card has been used
fraudulently. Whether you’re liable for charges typically depends on the type
of card, whether you still possess the card and when the card issuer is
alerted. This article provides further details.
What to do about
fraudulent credit or debit card charges
It’s an awful feeling to learn that someone has used your credit or
debit card to make fraudulent charges. Whether you’re liable for charges typically
depends on the type of card, whether you still possess the card and when you
alert the issuer.
Credit cards
If your credit card is lost or stolen and you report it to the card
provider before it’s used in a fraudulent transaction, you can’t be held
responsible for any unauthorized charges. If you report it after unauthorized
charges have been made, you may be responsible for a specified dollar amount in
charges. Some card issuers have decided not to hold their customers liable for
any fraudulent charges regardless of when they notify the card company. And if
your account number is stolen but not the actual card, your liability is $0.
But either you or the card issuer must identify the fraudulent transactions for
them to be removed.
When reporting a card loss or fraudulent transaction, contact the
issuer via phone. Then follow up with a letter or email. This should include
your account number, the date you noticed the card was missing (if applicable),
and the date you initially reported the card loss or fraudulent transaction.
Debit cards
If you report a missing debit card before any unauthorized
transactions are made, you aren’t responsible for any unauthorized
transactions. If you report a card loss within two business days after you
learn of the loss, your maximum liability for unauthorized transactions is $50.
But if you report the card loss after two business days but within
60 calendar days of the date your statement showing an unauthorized transaction
was mailed, liability can jump to $500. Finally, if you report the card loss
more than 60 calendar days after your statement showing unauthorized transactions
was mailed, you could be liable for all charges.
What if you notice an unauthorized debit card transaction on your
statement, but your card is still in your possession? You have 60 calendar days
after the statement showing the unauthorized transaction is mailed to report it
and avoid liability.
Safest choice
If you’re unsure about
the specific conditions that trigger liability for unauthorized charges,
contact your card issuer.
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