Debit card risks that everyone should know about
According to the Federal Trade Commission your liability under federal law for unauthorized use of your ATM or debit card depends on how quickly you report the loss.
If you report that your ATM or debit card is missing before it’s used without your permission, the Electronic Fund Transfer Act (EFTA) states that the card issuer can’t hold you responsible for any unauthorized transactions.
If unauthorized transactions occur before you report it to the card issuer, your liability under federal law will vary depending on how quickly you report the loss.
According to the Federal Trade Commission: “If you report the loss within two business days after you realize your card is missing, you will not be responsible for more than $50 for unauthorized use. However, if you don’t report the loss within two business days after you discover the loss, you could lose up to $500 because of an unauthorized transfer. You also risk unlimited loss if you fail to report an unauthorized transfer within 60 days after your bank statement containing unauthorized use is mailed to you. That means you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts. However, for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.”
For more information, visit the Federal Trade Commission’s Credit, ATM and Debit Cards web page
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