Cardholder Rights and Obligations

A credit card provides you with credit card rights, cardholder rights and credit card chargeback rights.  Holders of debit cards have those same rights. Likewise, there are also credit card chargeback merchant rights. Local law may add certain cardholder rights.

 

Consumers Enjoy the Following Rights Related to Their Use of Credit Cards and Debit Cards

1. Regular notification of charges made.
2. Timely credit when you pay up.
3. Credit balance refunds.
4. Oversight resolutions.
5. Elimination of unauthorized expenses.
6. Dispute resolution.
7. On-time shipment.
8. Rejection of delivery.
9. Refusal to pay when there is a dispute.
10. Safeguards against offensive calls and junk mail.

Know the Law

As a consumer, the law provides you with certain additional rights and obligations. That applies irrespective of whatever you use a credit card or some other payment method to make a purchase. Familiarize yourself with your country’s laws on the subject. In the United States, for example, the Consumer Financial Protection Bureau (CFPB) is the agency charged with the responsibility to defend cardholder rights and obligations. It advises consumers to learn how to use their credit cards safely to avoid problems.

If you pay for a transaction using a credit card or debit card, however, you have certain additional rights granted by the credit card network. These credit card rights, cardholder rights and credit card chargeback rights may be updated occasionally, so be sure to review them from time to time on the card network’s website. 

Cardholder Rights and Obligations: On-Time Payment

Paying your bills promptly is very important. This will prevent late fees and other extra financial charges. Your bank must record your payment on the day it was received. Keep in mind as well:

• You must make the payments as per agreed requirements.  Your issuer may expect payment before a set cut-off time.
• The card issuer may demand you pay with a stub or that you provide an account number.
• In the event your bill contains an error, you have the right to challenge that charge and refuse to pay it until the issuing bank has fully investigated and resolved the matter.  A mistaken charge may be due to undelivered items, an incorrect amount or a product or service you did not order. You must, however, pay any undisputed amount on the bill and other costs that are unrelated to the amount in dispute.

Cardholder Rights and Obligations: Illegal Charges

The law may hold you responsible for a maximum payment if your credit or debit card was used unlawfully.  In the United States, that amount is codified in the Fair Credit Billing Act (FCBA). 

However, if you reported the card theft or loss before it was used, you will be under no obligation to pay for any unlawful charges that result. If someone used your card number illegally but not the card itself, you are not under any obligation to pay for unauthorized charges.

Reporting a loss as soon as it occurs minimizes your liability.  Many credit card networks offer toll-free phone numbers for call centers manned 24/7 to enable you to contact them around the clock.

It is worthwhile to write to the issuing bank to follow-up on a lost or stolen card. Remember to include your account number, the date you realized that your card was missing and when you reported the loss.