{"id":352529,"date":"2016-04-04T10:42:05","date_gmt":"2016-04-04T15:42:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/credit-banking-finance\/are-you-liable-for-unauthorized-credit-card-charges.html"},"modified":"2024-01-29T13:30:36","modified_gmt":"2024-01-29T18:30:36","slug":"are-you-liable-for-unauthorized-credit-card-charges","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/are-you-liable-for-unauthorized-credit-card-charges.html","title":{"rendered":"Are You Liable for Unauthorized Credit Card Charges?"},"content":{"rendered":"\n
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Are You Liable for Unauthorized Credit Card Charges?<\/h1>\n
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\n By Olivia Wathne, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

If you have ever lost your credit or debit card, you know the sinking feeling in your stomach as you wonder what has been done without your knowledge. Don’t panic too much! F<\/a>ederal laws<\/a> place limits on your personal liability for unauthorized credit card charges. Always notify your bank as soon as you realize that your physical card has been lost or stolen. This is the best way to limit your liability for fraudulent transactions <\/a>on your credit card account.<\/p>\r\n

Liability for Credit Card Fraud<\/h2>\r\n

Imagine arriving at the store, checking your wallet, and realizing that your credit card is missing. The fear of unauthorized purchases and potential damage starts to set in.<\/p>\r\n

If you report the loss or theft of your credit card (usually within 30 days), the Fair Credit Billing Act<\/a> (FCBA) offers protection. You are not responsible for fraudulent charges made after notifying your credit card company. For unauthorized charges, you might only be liable for $50. Some cardholders are fortunate enough to have this amount waived by their credit card companies.<\/p>\r\n

If you suspect your credit information, like your stolen credit card or account number, has fallen into the wrong hands, you can also place a fraud alert on your credit report.<\/a> This alert notifies the major credit bureaus that your personal information has been compromised. This allows your credit bureau to add extra layers of verification when anyone attempts to access your credit report. By doing so, you can guard against unauthorized transactions and potential harm to your credit score<\/a>.<\/p>\r\n

It is important to remain vigilant against identity theft<\/a> and scams<\/a>.  Make sure to report any compromised credit card number to both your credit card issuer and the Federal Trade Commission<\/a> (FTC). Doing so can further safeguard you against potential financial losses.<\/p>\r\n

Liability for Unauthorized Use of ATM and Debit Cards<\/h2>\r\n

If you have lost your ATM or debit card, or if it has been stolen, it is very important to notify your bank as soon as possible. By doing so, you will minimize the amount of liability you will have for any unauthorized use of these cards. In the case of ATMs and debit cards, the Electronic Fund Transfer Act (EFTA)<\/a> sets forth the rules. Under the EFTA, your liability for lost or stolen ATM or debit cards is:<\/p>\r\n