April 12, 2014 Admin | April 12, 2014 If fraud takes place with your credit card, what liability do you have? Why is this important to know before hand?
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Federal law limits the liability of the card holder to $50, no matter how much was charged on your card by the unauthorized person(s). If just the credit card account number itself is stolen, federal law guarantees that the card holder has absolutely no liability. Several credit card companies have adopted a “zero liability” policy. That means that if there are any fraudulent charges on your account, you are not held responsible for any of it. This is important to know before hand, because you never know if/when this will happen to you, but you need to be prepared in case it does!
If fraud takes place on your credit card you are liable for $50 if you report it within the aloted window of time, you need to be as quick as you can about this. The faster you notified the credit card company the quicker they can get things fixed. Some of the time the credit card company will not even charge you the $50. The money that is being spent is the credit card companies money so they care deeply about getting it straitened out. With a debit card its your own money that is being spent. This is important information to know because you dont want to get footed with a bill thats for the whole mess when you are not responsible for it if you reported it in time, you also want to know what that time is you have to report the fraud.
Outstanding comments! Let’s review.
You are only liable for $50 if fraud occurs on your credit and you report it in a timely manner (under 60 days). This will be easy as you review your credit card statement carefully each and every month. Always be on the lookout for any type of purchase that you don’t remember making.
That $50 is usually waived, which means you will owe nothing. The bank/credit union are anxious to get this resolved because it is THEIR money that has been stolen, not yours. When someone steals money from your debit card, they are stealing from you. When they steal from your credit card, they are stealing from the institution that provided the card to you.