Visa U.S.A. members said Wednesday they’ve agreed to assume all liability for lost or stolen debit and credit cards if consumers notify issuers within two days.
Visa’s move comes two weeks after rival bank association MasterCard said cardholders would pay up to $50 if their card is used for fraudulent charges. Consumers could be liable for $500 or more under current federal law.
Visa, a payment system owned by thousands of banks worldwide, for 30 years has promoted credit and debit card payments as a better alternative to checks, notes and coins. While credit cards have become indispensable to many Americans, they’ve been tepid about debit cards.
Though they look like credit cards, which let consumers make purchases by drawing from an unsecured line of credit, debit cards withdraw money directly from your bank account–just like writing a check.
And that’s the problem, according to politicians and consumer groups, since a lost card gives the finder immediate access to your money.
Under the new policy, if the Visa card isn’t reported missing within two days, consumers would pay up to $50.
