Your Liability If You Lose Your ATM, Debit or Credit Card

Federal laws and bank policies may keep your liability low.

If you lose your ATM, debit or credit card, don't panic. Federal laws and bank policies limit your liability for unauthorized charges, as long as you quickly notify the bank or card issuer of the loss or theft. Read below to learn about your notification duties and maximum liability for each type of card.

Credit Cards

If your credit card is lost or stolen and you act quickly, you won't be out much money. If you notify the card issuer within a reasonable time after you discover the loss or theft, usually 30 days, you're not responsible for any charges made after the notification. For charges made before the notification, you'll be liable for only $50 (many credit card issuers waive even this small charge). But, if you don't notify the card issuer within a reasonable time, you may be on the hook for all unauthorized charges made before notification.

ATM and Debit Cards

With ATM or debit cards you must act even quicker than with credit cards in order to avoid full liability for unauthorized charges when your card is lost or stolen. Under the federal Electronic Fund Transfer Act, your liability is:

• $0 -- after you report the card missing
• up to $50 -- if you notify the bank within two business days after you realize the card is missing, unless you were on extended travel or in the hospital
• up to $500 -- if you fail to notify the bank within two business days after you realize the card is missing, unless you were on extended travel or in the hospital, but do notify the bank within 60 days after your bank statement is mailed to you listing the unauthorized withdrawals, and
• unlimited -- if you fail to notify the bank within 60 days after your bank statement is mailed to you listing the unauthorized withdrawals.