Card fraud is a payment made without the cardholder's authorisation, for example using stolen card details.
Card fraud is a payment made without the cardholder’s authorisation, for example using stolen card details.
Also called: Unauthorised transaction.
How it works#
Liability for unauthorised payments rests with the card issuer once the customer reports them; the holder only shares it in cases of gross negligence. Reporting promptly after noticing is what matters. The route runs through the bank rather than the merchant, and it is a different process from disputing a service that was ordered and never delivered.
Not to be confused with#
Card fraud is not the same as a chargeback for non-delivery: in a chargeback the payment was authorised and only the goods or service are missing.
In German#
The German term is Kartenmissbrauch. German version of this term
Related terms#
- Chargeback: A chargeback is the reversal of a card payment through your own bank when a paid-for service was not delivered or not delivered as agreed.
- Authorized user: An authorized user is a second person given a card on someone else’s account, whose spending the primary cardholder is liable for.
- Credit limit: A credit limit is the maximum balance a card account may carry between statements.
Articles that use this term#
TopicEvery article and term onCards and money.