In my country, any in person credit card transaction requires to show ID and to punch in a 4 digit pin code (both credit and debit). In the united states they dont ask for anything. I dont think they even look at the card name/signature/etc. Doesnt this generate a lot more fraud?
So if somebody in the usa goes to a bunch of stores and buys stuff with a card he stole or found and they actually sell the things to the person.
1) who loses money if the owner of the card reports stolen/lost? the bank? visa? the store? some insurance company?
2) who pays if the owner of the card does not report it lost/stolen and then simply doesnt pay the debt?
PS.- additional question: if the owner of a card makes legitimate purchases and soon afterwards dies. Who is responsible for the loss then? store? card? bank?
in the usa, in cases of fraud, who is ends up paying?
byu/gkavek inCreditCards
Posted by gkavek
1 Comment
The bank or the store eats the cost, not you. Thanks to federal law (Reg Z), your personal loss is capped at $50, but banks almost always cover everything to keep you happy. Usually, the store pays if they have old equipment, while the bank pays if the transaction used a modern chip. If a cardholder just disappears and stops paying their bill, the bank eventually gives up, writes it off as a loss, and sells the debt to a collection agency.