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Just as your money can be stolen and your credit card used fraudulently, a debit card can be filched and used without your knowledge. You may not realize it until checks start bouncing or you get your monthly checking statement. Government regulations require debit card issuers to set a maximum liability of $50 if the card is reported lost or stolen within two days of discovery. Liability increases to $500 if the lost or stolen debit card is reported within 60 days. Fail to tell your bank within 60 days after a bank statement is sent and you could lose everything in your checking and overdraft accounts. Check with your financial institution about your liability. Many card issuers offer consumers better protection than what the government requires. Visa and MasterCard, for example, have increased liability protection. MasterCard limits a customer's liability for losses incurred from a lost or stolen debit card to $50. Visa debit card customers pay nothing if the card is reported missing within two business days of the loss being discovered. After that, customer liability is capped at $50. Under government regulations, financial institutions may have up to 20 days to provide provisional credit to consumers for losses due to theft or loss. Some debit card issuers promise faster credit. Visa, for example, gives provisional credit equal to the amount in the account at the time the card was reported missing within five business days. Be aware that the card issuer is not required to cover fees charged by recipients of fraudulent check transactions that bounce. Some banks do, however, refund those fees as a measure of good customer service. Thinking about an Auto Loan? Home Equity? Any bank product? We give you unbiased rates for your area at bankrate.com. |