Fraud Protection for Lost Credit Cards
Author: Andri
Joined: 16 Dec 2004
Posts: 30
Posted: Thu Jan 06, 2005 9:06 pm
Post subject: Lost Card - Fraudulent activity liability question
Ok, with all the hussle and bussle of the Holiday season, I made a big no-no and accidentally left my AMEX card at a restaurant. I realized within one hour and called the resaurant -- they were too busy to look for it at the moment, so I called AMEX and cancelled the card. No harm done, no unauthorized charges. My question however, is when I called AMEX to cancelled the card, they tried to sell me fraud protection for my "whole" wallet. Since I haven't been offered this in previous calls to AMEX, it was obviously triggered by my reporting a lost card. I declined, but I was just curious what are the standard protections, how much do they vary between cards, and which cards have the best protections? Now, I am already not impressed with AMEX's website/customer service in that it takes a minimum of 24-48 hours after your card is run in order to tell what the charges were (merchants & amount). Charges to my MBNA card generally show up on the website within minutes, so I can always verify that changes to my available credit are my charges and not because someone has gotten my card number. Also, MBNA has twice called me when my account had "unusual activity" but when my AMEX actually did get a charge I didn't authorize, I had to wait two days to even find out what the charge was. Since AMEX has stopped requiring signatures for many everyday purchases, like grocery stores, I am concerned about how much of a bill someone could run up if they found an AMEX card. Just looking for general knowledge/input. Thanks!!!
View our latest credit card ratings!
Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 432
Posted: Thu Jan 06, 2005 10:21 pm
Basically, none of it matters. American Express uses its own independent processing system. Not all merchants submit charges automatically and electronically instantly. Many smaller merchants still get an authorization first, sometimes by phone or modem, and then don't get around to processing the final charge until a few days later. Some hand in merchant tickets to their local bank branch as a deposit, some even mail them in to the charge card processor. It can take weeks for a charge to actually hit your account if you're dealing with a smaller merchant. Your liability for misuse of a credit card is a maximum of $50 if you report the loss in a few months (I forget the exact limit)--and I've never heard of any bank actually charging anyone that $50 limit. I'm not saying a lost or misused card isn't a hassle. It can be--if there is fraudulent use, you have to fill out forms sometimes and even swear out an affidavit and have that document notarized. But paying for fraud protection is a total waste of money. You're already protected--for all your cards.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2393
Location: Illinois
Posted: Thu Jan 06, 2005 11:15 pm
Agree, the credit protection for fraud is a scam to make more money for the credit card companies, same goes with theft insurance. You already have rights protecting you, and steps to take when such things happen without some company having their hand out for more money from you.
To learn more about ID Theft you can check out: ftc.gov & idtheftcenter.com
View our latest credit card ratings!
Author: Andri
Joined: 16 Dec 2004
Posts: 30
Posted: Fri Jan 07, 2005 9:40 am
Thanks guys. I was pretty sure that if I acted responsibly, ie cancelling the card within 1 hour of leaving it, that I would have minimal liability, so I was just shocked when the CSR tried to sell me the fraud services. Glad to know I did the right thing!! Thanks again!!
View our latest credit card ratings!
Joined: 16 Dec 2004
Posts: 30
Posted: Thu Jan 06, 2005 9:06 pm
Post subject: Lost Card - Fraudulent activity liability question
Ok, with all the hussle and bussle of the Holiday season, I made a big no-no and accidentally left my AMEX card at a restaurant. I realized within one hour and called the resaurant -- they were too busy to look for it at the moment, so I called AMEX and cancelled the card. No harm done, no unauthorized charges. My question however, is when I called AMEX to cancelled the card, they tried to sell me fraud protection for my "whole" wallet. Since I haven't been offered this in previous calls to AMEX, it was obviously triggered by my reporting a lost card. I declined, but I was just curious what are the standard protections, how much do they vary between cards, and which cards have the best protections? Now, I am already not impressed with AMEX's website/customer service in that it takes a minimum of 24-48 hours after your card is run in order to tell what the charges were (merchants & amount). Charges to my MBNA card generally show up on the website within minutes, so I can always verify that changes to my available credit are my charges and not because someone has gotten my card number. Also, MBNA has twice called me when my account had "unusual activity" but when my AMEX actually did get a charge I didn't authorize, I had to wait two days to even find out what the charge was. Since AMEX has stopped requiring signatures for many everyday purchases, like grocery stores, I am concerned about how much of a bill someone could run up if they found an AMEX card. Just looking for general knowledge/input. Thanks!!!
View our latest credit card ratings!
Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 432
Posted: Thu Jan 06, 2005 10:21 pm
Basically, none of it matters. American Express uses its own independent processing system. Not all merchants submit charges automatically and electronically instantly. Many smaller merchants still get an authorization first, sometimes by phone or modem, and then don't get around to processing the final charge until a few days later. Some hand in merchant tickets to their local bank branch as a deposit, some even mail them in to the charge card processor. It can take weeks for a charge to actually hit your account if you're dealing with a smaller merchant. Your liability for misuse of a credit card is a maximum of $50 if you report the loss in a few months (I forget the exact limit)--and I've never heard of any bank actually charging anyone that $50 limit. I'm not saying a lost or misused card isn't a hassle. It can be--if there is fraudulent use, you have to fill out forms sometimes and even swear out an affidavit and have that document notarized. But paying for fraud protection is a total waste of money. You're already protected--for all your cards.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2393
Location: Illinois
Posted: Thu Jan 06, 2005 11:15 pm
Agree, the credit protection for fraud is a scam to make more money for the credit card companies, same goes with theft insurance. You already have rights protecting you, and steps to take when such things happen without some company having their hand out for more money from you.
To learn more about ID Theft you can check out: ftc.gov & idtheftcenter.com
View our latest credit card ratings!
Author: Andri
Joined: 16 Dec 2004
Posts: 30
Posted: Fri Jan 07, 2005 9:40 am
Thanks guys. I was pretty sure that if I acted responsibly, ie cancelling the card within 1 hour of leaving it, that I would have minimal liability, so I was just shocked when the CSR tried to sell me the fraud services. Glad to know I did the right thing!! Thanks again!!
View our latest credit card ratings!
posted by CardRatings.com at 10:58 AM
0 Comments:
Post a Comment
<< Home