Are you liable for fraudulent credit card charges?
Jackson Reed
Updated on February 18, 2026
Credit Card Loss or Fraudulent Charges Under the FCBA, your liability for unauthorized use of your credit card tops out at $50. If your credit card number is stolen, but not the card, you are not liable for unauthorized use.
Who is responsible for paying the credit card bill if it is a fraudulent charge?
“The bank is more likely to be liable for the fraud for card-present transactions, while the merchant might get stuck with the cost for transactions without a physical card.” The rules on liability are dictated by the credit card network the transaction used, such as Visa, Mastercard, American Express or Discover.
What can you do about fraudulent charges on credit cards?
- 5 steps to take if you’re a victim of credit card fraud.
- Call your credit card company immediately.
- Check your credit card accounts and change your passwords.
- Notify the credit bureaus and call the police if necessary.
- Monitor your statements and credit reports.
- Check your online shopping accounts.
- Bottom line.
Who is liable for fraudulent credit card charges?
Several credit card companies have also adopted a zero liability policy, which means the consumer is not held responsible for any fraudulent charges at all. The terms and conditions of your cardholder agreement often spell out the details.
Who is responsible for refund after credit card fraud?
Liability rests with the bank that issued the cardholder’s card, and if the purchase is later deemed to be fraudulent, the merchant is not responsible for refunding the customer.
What should I do if I find fraud on my credit card?
This early notification will give the issuer time to help you with the following: 1. Verify if and where fraud has occurred. 2. Remove unauthorized charges from your credit card account. 3. Close down your account to prevent future fraudulent charges.
Who is responsible for unauthorized charges on a credit card?
Many cardholder agreements say you are not responsible for any charges in this circumstance. If you have not lost the card itself, but someone steals and uses your account number, you generally have no liability for unauthorized use.
