Let’s face it, if your wallet is lost or stolen, the odds of getting your cash back are pretty slim.
That’s one of the big advantages of your debit card – it comes with powerful safety measures that can limit your liability for lost or stolen funds. The Electronic Fund Transfer Act establishes the rights and liabilities of consumers who use debit cards and the responsibilities of financial institutions or credit unions that issue those cards.
Today, many financial institutions have adopted zero cardholder liability policies, which basically protect you from any and all losses as a result of a stolen card. A Javelin Strategy & Research Banking Identity Safety Scorecard showed that all of the 25 largest banks and credit unions in the U.S. offer zero liability policies on debit cards for PIN, signature and card-not-present purchases. Some offer similar protections for business debit cards.
It’s a good idea to familiarize yourself with the specific policies that cover your account and card. You can find that information in the disclosure materials you get from your financial institution or just ask a bank or credit union representative.