Credit Card: What is Lost Card Liability?

Have you ever wondered what to do if you lost your credit card and noticed unauthorized transactions before you could get it blocked? Here’s a breakdown of lost card liability and what it means for credit card users:

  • Immediate Action:
    If you lose your credit card, the first step is to inform your bank or financial institution as soon as possible.
  • Understanding Liability:
    Lost card liability refers to the financial responsibility a user faces for unauthorized transactions made with a lost or stolen credit card.
  • Timeframe Matters:
    The liability incurred depends on how quickly you report the loss to your bank. The sooner you notify them, the lower your potential liability.
  • RBI Guidelines:
    The amount of liability you face for unauthorized transactions on a lost card is governed by rules established by the Reserve Bank of India (RBI).
  • Key Takeaway:
    To minimize your financial exposure, always report a lost credit card immediately. Understanding lost card liability can help you protect yourself against potential fraud.