What Legal Protections Are Needed When Debit Card Fraud Occurs?
Typically, consumers are fully protected when they suffer losses as a result of the unauthorized use of their debit cards or debit card numbers. Of course, the discovery of the theft is stressful and annoying – and other transactions may be interrupted once the account is cleaned out. But in the end, at least, consumers typically get their money back, along with a new card. For instance, MasterCard- and Visa-branded debit cards will likely carry a $0 or $50 liability policy. Still, legal protections could be improved – in case some companies’ policies might diverge from those of Mastercard and Visa. Currently, credit card holders get more legal protection than debit card holders when it comes to fraud. For example, initial liability for loss with a credit card or a debit card begins at $50, under federal law. But a credit cardholder’s liability for unauthorized use is capped at $50 – period. By contrast, with debit cards, the loss can rise to $500, 2 days after a cardholder learns of t
