Your Liability On Fraud Transactions On Credit Card

The FCBA is a federal law that lays down your liability for fraudulent charges when your credit card is lost or stolen. The maximum amount that you can be held liable for fraudulent transactions made on your credit card when it is stolen is $50. For fraudulent transactions that are made on your credit card due to stolen credit card information while a credit card is still in your possession is zero dollars. If the fraudulent transactions are made after you have reported the credit card as stolen in your liability is zero dollars.

Different credit card issuers have different kinds of protection plans that cover you for a certain amount of money. Check under your terms and conditions or with the creditor the kind of protection plans that is offered on your credit card. It is not necessary that a fraudulent transaction will appear immediately after the credit card is stolen. If the credit card all the information on your credit card is compromised check your credit card bills regularly for the next few months to see if any suspicious activity occurs.

Many companies make it difficult for credit card fraud to happen by using verification methods, specially for online transactions. For example, MasterCard uses a program called Secure Code Protect that requires the credit card owner to set a password and input this password for most of the online transactions that are done using the credit card. Just the card number is not sufficient to make the transaction.