What Should You Do If Your Credit Card Is Lost or Stolen?
If your credit card is lost or stolen, learn the vital actions to secure your finances, understand your consumer protections, and replace your card.
When a credit card is lost or stolen, swift action can significantly mitigate financial risks. Understanding the proper steps to take immediately is paramount to protecting your accounts and personal financial information.
Reporting the Loss or Theft
The immediate priority is to report a missing or stolen credit card to your card issuer. Contact information is available on monthly statements, their website, or mobile app, with many issuers providing 24/7 customer service. Be prepared to provide details like your account number, last known card location, and approximate time it went missing. The representative will review recent transactions. Once reported, the card is canceled, and a new card number is issued to prevent misuse.
Financial Liability Considerations
Federal law limits a cardholder’s financial liability for unauthorized charges on a lost or stolen credit card. Under the Fair Credit Billing Act, your maximum liability is $50, provided you report the loss or theft. If only your credit card number is stolen, you have no liability for unauthorized use.
Major card networks like Visa, Mastercard, American Express, and Discover provide “zero liability” policies. These policies guarantee that cardholders will not be held responsible for unauthorized transactions. Promptly reporting the loss or theft and exercising reasonable care means you may owe nothing for fraudulent purchases.
Credit and debit card liability protections differ. For debit cards, the Electronic Fund Transfer Act governs liability, and the amount you could be responsible for increases with delayed reporting. If you report a lost or stolen debit card within two business days, your liability is limited to $50; however, if you wait longer, it could increase to $500 or even the full amount of unauthorized transactions if not reported within 60 days.
Protecting Your Financial Identity
Beyond addressing the immediate card loss, take broader steps to protect your financial identity. Regularly monitoring your credit reports helps spot suspicious activity, such as new accounts opened in your name. You are entitled to a free annual credit report from each of the three major credit reporting agencies: Equifax, Experian, and TransUnion.
Placing a fraud alert on your credit reports signals to potential creditors that they should verify your identity before extending credit. You only need to contact one of the three credit bureaus to place an initial fraud alert, and that bureau will notify the other two. An initial fraud alert is free, lasts for one year, and can be renewed.
For more robust protection, consider initiating a credit freeze, also known as a security freeze, with each of the three credit bureaus. A credit freeze restricts access to your credit report, making it difficult for identity thieves to open new accounts. This measure is free to place and lift, and it does not impact your credit score.
Obtaining a New Card
After reporting your credit card lost or stolen, your issuer will send a replacement. Delivery typically takes three to ten business days, though some issuers offer expedited shipping. Upon receiving your new card, activate it promptly as instructed. Update any recurring payments or subscriptions linked to your old card number. This ensures continuous service and avoids missed payments or late fees.