What is a zero liability policy for credit card fraud?

A zero liability policy for credit card fraud is a policy adopted by most credit card companies that states that the cardholder is not legally responsible for any unauthorized charges that are made to their card. This policy is very important for consumers because it offers them financial protection against any fraudulent activity with their card, such as identity theft, stolen cards, and online account takeover. The Washington State Consumer Protection Act requires that any credit card that offers a zero liability policy must clearly outline the terms and conditions of the policy to the cardholder. This includes the procedures the cardholder must take to notify the card issuer of fraud, dispute any charges, and obtain a refund. The zero liability policy is applicable to both credit and debit cards. In order to be eligible for zero liability protection, cardholders must report any suspicious transactions or fraudulent activity immediately to the credit card issuer. This is the only way to be eligible for the full protection from the policy. Some card issuers also may offer additional protections, such as free credit monitoring and fraud alerts, to ensure that a cardholder’s account is monitored for any suspicious activity. It is important to read the fine print on all credit card statements to ensure that the policy is offered and that the cardholder is fully aware of all of the protections that the credit card offers.

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What is a zero liability policy for credit card fraud?

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