Are Debit Cards Protected From Loss Like Credit Cards?

Debit cards are cards that draw money directly from checking accounts. Merchants that accept credit cards usually accept debit cards. Like credit cards, debit cards are protected against loss, theft and fraud.

Significance

According to the Federal Trade Commission, cardholders are only liable for a maximum of $50 resulting from fraudulent debit card transactions. If a cardholder reports the card lost or stolen before any transactions occur, she will not be liable for any amount of money.

Time Frame

A cardholder must report debit card loss, theft or fraud within two days for the $50 liability rule to apply. If a person files a report between two and 60 days after the incident, he will be liable for up to $500. If he does not report the incident within 60 days, he will be liable for the entire amount.

Warning

If you lose your debit card, find it was stolen or discover fraudulent transactions, contact your card issuer or bank immediately. Your card will be canceled and you will be protected under the above provisions.

References

• Federal Trade Commission: Credit, ATM and Debit Cards: What to do if They're Lost or Stolen
• Privacy Rights: Identity Theft: What to do if it Happens to You