Who Bears the Cost of Credit Card Fraud?

Learn who is responsible when a credit card is used fraudulently and how zero-liability policies protect consumers.

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When a credit card is used fraudulently, the card issuer typically bears the cost. Upon detecting unauthorized charges, cardholders should report them immediately to their bank or credit card company. Most issuers have zero-liability policies, protecting consumers from financial loss due to fraud. This practice encourages vigilant monitoring of one's accounts for any suspicious activity.

FAQs & Answers

  1. What should I do if I notice unauthorized charges on my credit card? Immediately report the charges to your bank or credit card company to initiate an investigation and prevent further losses.
  2. How does zero-liability protection work? Zero-liability protection means that consumers are not held accountable for unauthorized transactions if they report them promptly to their issuer.
  3. Are all credit card companies required to have zero-liability policies? While many credit card companies offer zero-liability policies, it is essential to check with your issuer for specific terms and conditions.