Credit and Debit Cards Essay

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Introduction

A person can easily lose his or her credit or debit card. It is, therefore, important to be well prepared in case such an event occurs. There are procedures that banks and federal laws have put in place to follow whenever you happen to lose your credit or debit card. It is therefore, important to know these procedures in case you happen to lose your credit or debit card. It is also important to know ways through which you can minimize the loss of your debit or credit card.

Potential liability if your credit card is stolen

Banks and credit card issuers have put in place measures that are aimed at limiting you liability incase your card is used without your authority. However, these laws depend on how the card had been used. A card might have been used personally by a thief or used over the internet to make purchases (Goldsmith 2005).

If the credit card is used to make purchases personally, then the card issuer will not hold you liable. This however, applies for amounts below $50. However, you will not have any liability if the thief uses more than $50 to make payments personally.

In the second case, if the thief happens to use your credit card to make an online purchase then you will have no liability. It is important to report the loss of your credit or debit card the moment it is stolen.

Steps to take when your credit card or debit card is stolen or is lost

If you happen to lose your credit or debit card it is important to act swiftly and report the matter to your card issuer. Credit card companies and banks have toll free numbers that you can use to report such cases. They have representatives that will attend to you day or night.

After reporting this to your card holder, it is important that you follow up the matter by e-mailing or writing them a letter. In the letter or e-mail, you should include your account number. Do not forget to include the day the card was lost or stolen. This will make sure the card issuer takes the necessary corrective measures.

Minimizing the risk of losing or having your debit or credit card stolen

It is important to keep these cards safely. Ensure you monitor your accounts on a regular basis. In case you find any unauthorized payments you should contact your card holder immediately (Goldsmith 2005). The card issuer will suspend your account immediately and cancel the payment before it’s too late.

Sometimes the credit card or debit card issuer will call or text you in case they detect any suspicious payments made by your cards. You should take this very seriously and make sure you liaise with your card holder to make sure your account is suspended and that you are issued with a new card. Make sure you keep your cards safely and never disclose your account details to anyone.

Conclusion

Credit cards and debit cards are very important particularly in this era where technology has been embraced. They help people make payments and withdraw money with convenience. However, you may lose these cards and some people may take advantage of this by using your cards to make payments. Therefore, it is important to keep your cards safely and report whenever the cards are lost or stolen.

Reference

Goldsmith, E. B. (2005). Consumer economics: issues and behaviors. Upper Saddle River, N.J.: Pearson Education.

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IvyPanda. (2019, January 17). Credit and Debit Cards. https://ivypanda.com/essays/credit-and-debit-cards/

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"Credit and Debit Cards." IvyPanda, 17 Jan. 2019, ivypanda.com/essays/credit-and-debit-cards/.

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IvyPanda. (2019) 'Credit and Debit Cards'. 17 January.

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IvyPanda. 2019. "Credit and Debit Cards." January 17, 2019. https://ivypanda.com/essays/credit-and-debit-cards/.

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IvyPanda. "Credit and Debit Cards." January 17, 2019. https://ivypanda.com/essays/credit-and-debit-cards/.

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