If you have ever left your purse sitting on the subway or bus, or had someone pick your pocket in a crowd, then you know the terror that can strike whenever the possibility arises that your credit cards might possibly be getting used by a fraudster. We live in an unscrupulous world, but luckily, there are some laws that protect consumers from would-be thieves who might get their hands on your credit card. Most credit cards now offer zero fraud liability for unauthorized purchases, although this is not always the case.
Beyond Legal Remedies
Under federal law, your credit card issuer can only hold you accountable for the first fifty dollars in unauthorized purchases on your credit card if it is lost or stolen. And you are not held responsible for any charges if the card is not physically with the person who has stolen the number, such as if the card is used online for purchasing merchandise without your authorization. Nonetheless, if you fail to report to the credit card issuer that the card is stolen or lost within a certain period of time, you might be held responsible for all purchases made on the card. That’s usually not the case if you take out a card that has zero fraud policies. Some reasons to look for a credit card that has a zero-liability for unauthorized purchases clause:
- You won’t be left holding the bag if someone steals your card or you lose your card. As explained above, federal law protects you in most instances of lost or stolen credit cards to the point that you pay a maximum of fifty dollars, but if your card offers zero-liability against unauthorized purchases, that’s even better.
- You never know when “it” will happen to you. Thieves are becoming savvier and more sophisticated than ever before. Credit card fraud is becoming more commonplace. From counterfeit cards that are made when your card information is swiped at the ATM or at the point of sale to mere data pirating that occurs when you shop online, one is never for sure if their information is safe and if their cards have been compromised by thieves.
- This type of card often gives you more protection than standard credit cards. Some credit card issuers allow you to set up fraud alerts that will alert you via text or email whenever your card is used for purchases that seem unusual for you, or based on an amount that you pre-determine. This can help you to catch fraud fast and stop it dead in its tracks.
- Credit cards that offer zero-fraud liability often have a faster and more efficient procedure for resolving complaints and claims of fraud. Oftentimes, if your card has zero liability against fraud, you can get your problem cleared up within a day or two of discovering that you have a problem. With other types of cards, it can take months to iron things out, which can be stressful and frustrating.
- Credit cards with zero fraud liability give you the peace of mind that comes with knowing that you will never have to pay up if someone uses your card without your permission. This protection provides cardholders a safety net against the “what-if” scenarios that always arise when a credit card is lost or stolen.
As you can see, going with a credit card that offers this type of zero liability against would-be fraudsters is a better option than one that does not. Not only will you save yourself from liability for charges incurred in your name, the card issuer of these cards tends to resolve your issues quickly so that you can put an unpleasant experience in the past.
Updated: January, 15 2012