What is a zero liability policy for credit card fraud?
A zero liability policy is a form of protection offered by many credit card companies to financially protect cardholders from fraudulent transactions. This policy, which is regulated by federal law in the United States, helps protect cardholders from being held financially responsible for fraudulent charges or unauthorized transactions. In New York, the federal Credit CARD (Credit Card Accountability Responsibility and Disclosure) Act of 2009 strictly outlines the parameters of the two policies that offer such protection. Under the zero liability policy, cardholders are not held responsible for any unauthorized charges as long as they report them to the card issuer within a set timeframe. This timeframe is typically 60 days from the date on the statement that the charge was made. The zero liability policy also applies to fraudulent use of an ATM or debit card, and the account holder will be refunded any money taken from their account due to a fraudulent transaction. This policy provides consumers with peace of mind, as it allows them to purchase items with their credit cards without fear of being held financially responsible for fraudulent charges or unauthorized transactions. However, cardholders should still take all necessary measures to protect their card, such as not sharing their card information with anyone, using strong passwords, and regularly monitoring their statements for suspicious activity.
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