Originally Posted by
alexmt
Also, remember, zero liability in the US isn't due to the law. US law allows them to come after you for the first $50 in fraud losses. Market pressure keeps them from doing so.
Defacto, most US issuers waive the $50. In some other countries, [AUS] they waive it if it's your '1st time'. After that, maybe.
To clarify on [US] credit card liability:
If you lose your credit card, a thief picks it up and uses it, you might be liable for up to $50. The key here is the card is not in your possession. If you report it before it's used, $0.
If the card is still in your possession, you have $0 liability.
The card holder must make timely notification
in writing by sending or giving the bank a letter. Even if you 'chat' or email the notification, follow it up in writing since that is the legal requirement for protection to kick in.
Notify within 2 business days for a lost card and 60 days after billed (statement), for an unauthorized transaction when you still have the card in your possession.
The card issuer has to agree this was fraud. They could challenge this in which case you have some aggravation coming in your life. The card issuer could take care of it, or ask you to call the merchant and get them to take it off.
Using a MC/VS Magstripe Credit card with PIN, such as at an ATM may also kill off your protection, since VS/MC do not get to process the transaction on their network. AX is better about this.
Google: "Truth in Lending Act" or "Federal Reserve Board Regulation Z"
There's no reason to believe chip and PIN will change anything for consumers, it's wild speculation to think otherwise.
Speculation yes, but not impossible.
[US] Debit cards have different protections depending on if you use PIN or Signature. Signature at the POS earns more for MC/VS than PIN at the POS with debit. So MC & VS protect you if you debit w/Signature but not with PIN.
In the US, EMV C&S is the standard for CCs, so different liability for C&S and C&P isn't going to happen any time soon, since there aren't going to be a lot of C&P transactions.
As EMV cards & readers rollout now, the system will get stressed for the first time in late August this year with 'Back to School' shopping, then get a volume test for the December 2014 holidays. Those two 'card holder present' events should produce some useable data in terms of total transactions, number of EMV vs Swipe, fraudulent transactions as a percentage of totals & average time per transaction by transaction type. Once that is all in hand, I'm sure the issuers will make their next move.