As our economy becomes more and more digital, ATM debit cards have become a frequent payment method. This article discusses your liability for lost or stolen card charges.
ATM Debit Cards
ATM debit cards have certainly made life a lot easier. For many people, carrying around a checkbook is a thing of the past. My debit card has been used so much I can barely see the numbers on it anymore. The downside, of course, is inevitably you will lose the card. For the unlucky, the card may even be stolen. If this occurs, you need to act quickly to cut off liability for any of the charges.
ATM debit cards are not credit cards for legal purposes. With a credit card, your liability is limited to $50 so long as you let the credit card company know about fraudulent charges when you get your statement. The laws governing ATM debit cards provide much less protection.
If you report an ATM debit card missing, you cannot be held liable for any subsequent withdrawals or charges. However, the rules are different if the unauthorized charges happen before you report the card missing:
1. You are responsible for losses up to $50 if you report the card missing or...