(NC)-Losing your credit card or having it stolen can be scary, especially if you become the victim of credit card fraud. But did you know there are ways you can protect yourself?
The best thing to do is to avoid becoming the victim of fraud in the first place. Here are some ways you can protect yourself:
. Memorize your PIN (personal identification number). Never write it down and never share it with anyone.
. Keep track of your monthly purchases and report any suspicious or inaccurate charges to your bank immediately.
. Tell your credit card issuer right away if your card is lost or stolen.
These small steps can save you a lot of time, money and stress.
Reading and understanding your credit card agreement is the first and most important thing you can do to protect yourself from liability.
For credit cards issued by banks, the law states that the most you can be held liable for in cases of fraud or illegal use of your credit card is $50. This must be made known to you in writing in the agreement you sign when you get the card.
Some credit card issuers also offer additional protection. Visa, MasterCard and American Express offer a service called Zero Liability. Zero Liability protects you from having to pay out of your own pocket if someone steals your card or uses it without your permission.
While Zero Liability is a handy safety net, be sure to read your agreement carefully - there are some situations where you can still be held responsible for the charges to your card.
For example, Zero Liability will not cover you when your PIN is used to access your money from a bank other than the bank that issued your credit card. In this case, you are fully liable. Commercial business cards are not covered either.
To be eligible for Zero Liability coverage, your financial institution may require that your account be in good standing, that you have taken reasonable care to protect your card, that you have not reported two or more illegal transactions in the past 12 months, etc. It is important, therefore, that you be aware of all the terms and conditions of your credit card agreement
If you have any questions about the lawful obligations of your financial institution, contact the Financial Consumer Agency of Canada (FCAC). FCAC is the federal government agency that regulates federal financial institutions. For more information, visit FCAC's Web site at www.fcac.gc.ca or call FCAC toll-free at: 1-866-462-3222.
News Canada
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