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Released: February 10, 2012

Help Desk FAQ

What is an unauthorized transaction?

An unauthorized transaction is any transaction that you didn’t make and you didn’t permit anyone else to make. Unauthorized transactions could be made by someone you don’t know, who finds or steals your card or your account information. Or they could be made by someone you know but who didn’t have your permission to use the card. In either case, you would have to dispute the transactions with your card issuer, which may require you to file a police report. The company will then investigate your dispute.

Under federal law, your liability for unauthorized charges on a credit card is $50.

If you report the loss or theft of a debit card within two business days of when you notice the card missing, your liability is limited to $50. If you don’t, your potential liability increases to $500. You risk unlimited liability if you fail to report an unauthorized card transaction that appears on your account statement within 60 days of that statement being mailed to you.

Some prepaid and gift card issuers voluntarily provide “zero liability” protection. If your card has a zero liability policy, you could owe nothing for unauthorized transactions.