When does my card protect me from financial loss?

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Credit card issuers, the government, and insurance policies afford some protection against financial loss due to credit card and debit card theft, but credit cards offer much broader protection.

Credit and Debit Card Protection
CREDIT CARD PROTECTION   

DEBIT CARD PROTECTION

You are responsible for only the first $50 of unauthorized charges (federal law)You are responsible for only the first $50 of unauthorized charges if you notify your bank within two business days of discovering the card’s loss or theft (federal law); liability then increases to $500 and becomes unlimited if you have taken no action 60 days after your bank statement is mailed
Payment networks (Visa, MasterCard, etc.) often offer zero-liability protection against fraudulent card useNo secondary layer of protection
You can deactivate your card immediately if you notice it has been lost or stolen, potentially avoiding all costsYou can deactivate your card immediately if you notice it has been lost or stolen, potentially avoiding all costs
Homeowner’s or renter’s insurance may cover up to $500 in losses due to unauthorized card useHomeowner’s or renter’s insurance may cover up to $500 in losses due to unauthorized card use

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For additional information on disputing charges, look up your card issuer’s policies or download the Federal Trade Commission brochure Facts for Consumers: Fair Credit Billing