Fraudulent charges on your card? You're protected by law. $0-$50 max liability for most cases. Report immediately and recover your money within days.
Two major federal laws protect you from unauthorized transactions: the Fair Credit Billing Act (FCBA) for credit cards and Regulation E (Electronic Fund Transfer Act) for debit cards and electronic payments.
Maximum Liability: $50 (often $0)
Under the FCBA, your liability for unauthorized credit card charges is capped at $50, regardless of when you report the fraud. If only your card number was stolen (not the physical card), your liability is $0.
Key Protections:
Liability Depends on How Fast You Report
Debit card fraud protections are time-sensitive. The faster you report, the less you're liable for:
✅ Report Within 2 Business Days: $50 Max Liability
Best case scenario. Act fast to minimize loss.
⚠️ Report After 2 Days, Before 60 Days: $500 Max Liability
Still protected, but higher potential loss.
❌ Report After 60 Days: Unlimited Liability
You could lose everything stolen from your account.
⚠️ Critical: The 60-day clock starts from when your statement is sent, not when you notice the fraud. Always review bank statements immediately!
In January 2025, the Consumer Financial Protection Bureau issued new guidance clarifying that:
Both credit and debit cards offer fraud protection, but credit cards generally provide stronger and simpler protections. Here's a detailed comparison:
| Feature | Credit Card (FCBA) | Debit Card (Reg E) |
|---|---|---|
| Maximum Liability | ✅ $50 max (physical card stolen) ✅ $0 (card number only stolen) | ⚠️ $50 (reported within 2 days) ⚠️ $500 (2-60 days) ❌ Unlimited (after 60 days) |
| Time Sensitivity | ✅ Not time-sensitive for liability limit | ❌ Very time-sensitive - must report within 2 days for best protection |
| Your Money at Risk? | ✅ No - bank's money, not yours | ❌ Yes - your cash is gone until refunded |
| Dispute Timeline | 60 days from statement to dispute | 60 days from statement to dispute |
| Provisional Credit | Charges removed during investigation | May get provisional credit after 10 days |
| Investigation Timeline | 30-90 days | 10-45 days |
| Refund Speed | Immediate (charges reversed) | 10 days to 45 days (money back) |
💡 Best Practice: Use credit cards for online purchases and high-value transactions. Save debit cards for ATM withdrawals. This minimizes fraud risk and maximizes your legal protections.
While federal law caps your liability at $50 (credit) or $50-$500 (debit), most major card issuers offer Zero Liability Protection as an additional benefit. This means you owe $0 for unauthorized charges, even if federal law would allow them to charge you $50.
Zero Liability is a voluntary policy offered by card networks (Visa, Mastercard, American Express) and individual issuers. It typically covers:
Coverage: Protects you from unauthorized charges on your Visa credit, debit, prepaid, or reloadable prepaid card.
Requirement: You must report the fraud promptly and not have been grossly negligent (e.g., gave your PIN to someone).
Refund timeline: Issuers must replace funds within 5 business days of notification.
Note: Available to U.S.-issued cards. Some prepaid cards may have different terms.
Coverage: You won't be held responsible for unauthorized transactions on your Mastercard credit, debit, or prepaid card.
Requirement: Report fraud promptly. Must use reasonable care in protecting your card (don't share PIN, report lost cards immediately).
Automatic: No need to enroll - protection is automatic on all Mastercard-branded cards.
Mastercard emphasizes that you won't be liable even if you didn't use a PIN or sign for the transaction.
Coverage: $0 liability for unauthorized charges on American Express credit and charge cards (and many co-branded cards).
Requirement: Report fraudulent charges promptly and have taken reasonable care of your card.
Additional benefit: Amex often provides temporary cards or emergency card replacement while traveling.
American Express is known for excellent fraud investigation and quick resolution.
Coverage: You're never held responsible for unauthorized purchases on your Discover credit or debit card.
Requirement: Report fraud promptly after discovery.
Monitoring: Discover also offers free fraud alerts and 24/7 monitoring.
Zero Liability typically does NOT cover:
💡 Bottom Line: Even with Zero Liability, you still need to report fraud promptly. The faster you report, the faster you get your money back and prevent additional fraud.
Quick action is critical when you discover unauthorized charges. Follow these steps to report fraud and maximize your protections:
Call the customer service number on the back of your card as soon as you notice unauthorized charges. Do this before anything else.
What to say: "I need to report unauthorized charges on my card. I see charges on [dates] to [merchant names] for [amounts] that I did not make or authorize. I believe my card has been compromised."
Federal law (especially FCBA) requires written notification to preserve all your rights. Send a letter or email within a few days of your phone call.
What to include in your written dispute:
Sample Dispute Letter:
[Your Name]
[Address]
[Date]
[Card Issuer Name]
[Fraud Department Address]
Re: Unauthorized Transactions on Account [last 4 digits]
Dear Fraud Department,
I am writing to report unauthorized charges on my account ending in [last 4 digits]. I contacted you by phone on [date] and was given reference number [number].
The following charges are unauthorized:
1. [Date] - [Merchant] - $[Amount]
2. [Date] - [Merchant] - $[Amount]
I did not make or authorize these transactions, nor did I give anyone permission to use my card. I believe my card was compromised due to [theft/skimming/data breach].
Please investigate these charges and issue provisional credit while you investigate. I have enclosed [any supporting documents].
Sincerely,
[Your Name]
Send via: Certified mail (for paper trail) or email to the fraud department. Keep a copy for your records.
While banks can't require you to file a police report before investigating (per 2025 CFPB rules), doing so strengthens your case, especially for large fraud amounts.
Why it helps: Police reports establish an official record of the crime, which can be crucial if the fraud is large or if the bank challenges your claim.
Fraudsters often test cards with small charges before making large purchases. After reporting fraud:
Once your card is cancelled and replaced, you'll need to update payment information for:
Pro tip: Keep a list of all subscriptions tied to each card so you can quickly update them if fraud occurs.
Don't assume your dispute is being handled. Stay proactive:
⏰ Critical Deadlines Recap:
Once you report unauthorized transactions, your bank or card issuer must conduct a formal investigation. Here's what happens behind the scenes:
Day 1: Initial Report
Days 1-10: Initial Investigation
Days 10-45: Full Investigation (Regulation E)
Days 30-90: Full Investigation (FCBA for Credit Cards)
Banks use sophisticated fraud detection to verify your claim is legitimate:
What is provisional credit?
If the bank's investigation takes longer than 10 business days, they must give you temporary credit for the disputed amount while they continue investigating. This is required by Regulation E for debit/EFT transactions.
Important notes:
💡 Pro Tips for Smooth Investigations:
Estimate your liability and potential recovery based on card type, fraud amount, and how quickly you reported it. This calculator applies federal law (FCBA for credit, Regulation E for debit) and zero liability policies.
Get an estimate
This calculator provides estimates based on federal law and typical zero liability policies. Actual liability depends on your specific card agreement, negligence factors, and how promptly you reported the fraud. Contact your card issuer for personalized guidance.
Time is critical for fraud protection. Report immediately, get expert help with disputes, and recover your money fast. We'll guide you through the entire process.
Report Fraud & Get Help NowFree consultation. $0-$50 max liability in most cases.