credit cards

Fact No. 3: Credit card protections

8 little-known facts about your credit card
Credit card protections

You buy something online, and it never arrives. What you ordered in the store is not what is delivered. Or a charge pops up on your bill that's not yours. Don't worry; your credit card has your back.

Credit cards provide certain consumer rights that are a "forgotten powerful protection," says Todd Mark, vice president of education for the Consumer Credit Counseling Service of Greater Dallas.

For example, the maximum liability for unauthorized purchases on a stolen or lost credit card is $50 under federal law, though most issuers offer zero liability. If the loss involves just your credit card number, then you have no liability under the law.

The Fair Credit Billing Act allows consumers to seek a refund from their credit card issuers for an unsatisfactory purchase. The charge must be at least $50, and the purchase made within 100 miles of your home. You also must have made an effort to resolve the matter with the seller first.

In addition to federal rights, some cards offer return protection, protection against lost or broken merchandise, or extended warranties.



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