Federal law limits your liability to $50 for unauthorized credit card charges. Most issuers go further with $0 liability policies. Here's how to report fraud and get your money back fast.
The Fair Credit Billing Act (FCBA) limits your liability for unauthorized credit card charges to $50 maximum. However, all major issuers (Visa, Mastercard, Amex, Discover) offer $0 liability policies. Report fraud immediately, follow up in writing within 60 days, and you won't lose a dime.
Two federal laws protect consumers from credit card fraud:
The FCBA provides the following protections:
For debit card fraud, EFTA rules differ:
| When You Report | Your Liability |
|---|---|
| Before any unauthorized charges | $0 |
| Within 2 business days | Up to $50 |
| Within 60 days | Up to $500 |
| After 60 days | Unlimited (could lose all stolen funds) |
Credit vs. Debit: Credit cards offer far better fraud protection than debit cards. Always use credit for online purchases when possible.
All major payment networks exceed federal requirements with $0 liability guarantees:
| Network | Policy Name | Coverage |
|---|---|---|
| Visa | Zero Liability Policy | All unauthorized transactions |
| Mastercard | Zero Liability Policy | All unauthorized transactions |
| American Express | Fraud Protection Guarantee | All unauthorized charges |
| Discover | $0 Fraud Liability Guarantee | All unauthorized transactions |
Check all transactions. Most issuers offer mobile apps with real-time alerts — enable these for instant notification of any charge.
Call the number on the back of your card immediately. Most issuers have 24/7 fraud hotlines. Have ready:
Request immediate card cancellation. A new card with a new number will be mailed within 3-7 business days. Many issuers now offer instant digital card access while you wait.
For significant fraud ($500+), file a report with your local police department. This creates an official record and may be required by your issuer.
Visit IdentityTheft.gov to create a recovery plan and generate an Identity Theft Report. This official document helps with:
Send a written dispute letter via certified mail within 60 days of your statement date. This triggers FCBA protections.
After reporting fraud, protect yourself from new accounts being opened in your name.
Contact ANY one of the three credit bureaus — they must notify the others:
A fraud alert requires creditors to verify your identity before opening new accounts. Initial alerts last 1 year; extended alerts (with Identity Theft Report) last 7 years.
A freeze completely blocks access to your credit report. No one can open new accounts in your name until you temporarily lift the freeze.
Pro Tip: Freeze your credit at all three bureaus. When you need to apply for credit, temporarily lift the freeze online using your PIN. It takes about 1 hour to process.
If your fraud dispute is denied, you have options:
Demand the issuer provide all evidence used to deny your claim. This includes:
Ask for the executive office or Office of the President. Every major issuer has an escalated disputes department.
Time Limit: You have 60 days from when the statement was mailed to dispute charges in writing. Don't miss this deadline!
If a debt collector contacts you about an account you didn't open:
If fraud resulted in collections, use our free Debt Validation Letter Generator to demand proof and assert your identity theft rights.
Generate Your Free Debt Validation LetterFor $0 liability under the FCBA, report within 60 days of your statement date. However, most issuers offer $0 liability regardless of timing if you report promptly. Call immediately upon discovering fraud.
No. Disputed fraudulent charges cannot be reported as delinquent during the investigation. Once resolved, the charges must be removed entirely, including any negative credit reporting.
Report immediately. Liability depends on timing: $0 if reported before charges, $50 if within 2 days, $500 if within 60 days, unlimited after. Unlike credit cards, real money left your account — act fast.
If you authorized the user, you're generally responsible for their charges. However, if someone stole your card and made purchases, that's unauthorized fraud — you're protected.
A fraud alert warns creditors to verify your identity; it lasts 1 year (free). A credit freeze blocks all access to your credit report until you lift it — stronger protection, also free.
Creditors must acknowledge your dispute within 30 days and resolve it within 90 days under the FCBA. Most resolve faster — typically 30-45 days for straightforward fraud cases.