What are your liabilities for unauthorized charges?

With ATM or debit cards, you must act quickly in order to avoid full liability for unauthorized charges when your card is lost or stolen. Under the federal Electronic Fund Transfer Act, your liability is: $0 if you report the loss or theft of the card immediately and before any unauthorized charges are made.

What is the penalty for unauthorized use of a credit card?

The penalties for credit card fraud in California can vary depending on the circumstances and severity of the case. On the low end, it is a year in county jail and a $1,000 fine. On the high end, it is punishable by up to three years in county jail and a $10,000 fine. Credit card fraud is also a federal offense.

How do you fight unauthorized charges?

Consumers can dispute fraudulent charges on their bill by calling their issuer. This is typically a quick process where the issuer will cancel the credit card in question and reissue a new one. You also have the right to dispute a credit card charge for a purchase you willingly made.

Who is liable for unauthorized charges on a credit card?

Credit Cards. Under the Fair Credit Billing Act, your liability for unauthorized charges depends on whether the thief personally presented your card to make the purchase, or just stole the number. If the thief personally presents your card to make the purchase, the card issuer can’t hold you liable for more than $50 in fraudulent charges.

Who is liable if a credit card Number is stolen?

In today’s world of electronic fraud, if just the credit card account number itself is stolen, federal law guarantees that the cardholder has a zero liability to the issuer. Numerous credit card companies have also adopted a zero liability policy, which means the consumer is not held responsible for any fraudulent charges at all.

Who is responsible for the loss of a credit card?

Credit Card Loss or Fraudulent Charges Under the FCBA, your liability for unauthorized use of your credit card tops out at $50. However, if you report the loss before your credit card is used, the FCBA says you are not responsible for any charges you didn’t authorize.

Who is liable if someone uses your debit card?

If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it: If someone makes unauthorized transactions with your debit card number, but your card is not lost, you are not liable for those transactions if you report them within 60 days of your statement being sent to you.