You should not rely on this booklet for legal advice. It provides general information only.
Lost or stolen cards and chargebacks (September 2009)
Protecting Yourself from Unauthorized Transactions
If you find unauthorized transactions on your account
Fraud protection
E-Promise
Credit Card Chargebacks
If you report the loss of your credit card before it is used, the credit card company cannot hold you responsible for any unauthorized charges. If someone uses your credit card before you report it missing, the most you can be held responsible for is $50. However, you must call your credit card company within a reasonable amount of time.
Protecting Yourself from Unauthorized Transactions
Here are some steps you can take to protect yourself from unauthorized transactions:
- As soon as you receive a new credit card, sign the back. Cancel and destroy any cards you no longer need.
- Make sure you activate your card right away. A non-activated card can open you up to fraud or may be cancelled by the credit card company.
- Make sure your monthly credit card statement lists only the transactions you made during the month. If you notice any unauthorized transactions, report them immediately to your credit card company.
- Don't give personal information or your credit card account number over the phone or the Internet unless you're dealing with a company you know and trust.
- Keep your personal information safe. This includes your date of birth, your social insurance number and all your other personal identification.
- Request your credit file from the credit bureaus at least once a year to make sure it's accurate. You can contact a list of credit bureaus in Canada at: http://creditsolutions.ca/resources/related-links.
- Keep any record of your Personal Identification Number (PIN) separate from your credit card and never disclose it to anyone.
If you find unauthorized transactions on your account
If you find unauthorized transactions on your credit card account, you should:
- contact your credit card company immediately and report the unauthorized transactions. Write down the name of the person you spoke to, as well as the date and time of your call. File a report with your local police. They will give you a report number that you should keep, since your credit card company may ask for this number.
- check your credit card agreement for your liability limit (a maximum of $50).
Fraud protection
VISA, MasterCard and American Express also provide cardholders protection beyond the maximum liability indicated in their credit card agreements. Through Visa and MasterCard’s zero-liability policy and American Express’ Fraud Protection Guarantee, if your credit card is lost or stolen, or if someone uses your credit card number to make transactions you didn't authorize, you can usually be reimbursed.
These policies apply to transactions made on the Internet, by phone or at a retailer. However, you may not be covered in cases of fraud involving cash advances received with your card at an automated banking machine, or transactions made with convenience cheques or with corporate credit cards.
E-Promise
VISA’s voluntary E-Promise code can also help you to resolve issues with merchants or sellers. If you have been unsuccessful in dealing with the merchant or seller, contact VISA and request that they cancel or reverse a charge in the following situations:
- When you have lawfully cancelled the cardholder's payment agreement with an on-line, phone-order or mail-order merchant (for example, you cancel your gym membership but you continue to be charged); or
- When the purchased item has not been received, or the item is different from what was ordered.
Credit Card Chargebacks
To receive a chargeback (refund) from your credit card company, you must contact them within 30 days of receiving an incorrect statement and no later than 90 days following the original transaction date.
You have been charged by a company or store you have never dealt with: Call your credit card company, and ask them to investigate. If the charge isn’t yours, they’ll likely send you a letter or affidavit to sign and then credit your account. If your card has been used fraudulently, your bank or credit union will probably temporarily freeze your account and issue you a new card.
You have been overcharged for a purchase and the wrong amount appears on your statement, or a return was processed as a purchase: You should contact the store where you bought the item and ask for the transaction to be corrected. Get a copy of the correcting voucher or receipt and make sure this transaction shows up as a credit on your next bill. If the situation is still not resolved, contact your credit card company and ask them to investigate the situation. They will ask you for a copy of the transaction receipt. Your credit card company will then issue you a credit if they decide you are correct.
You have been charged twice for the same purchase: Sometimes credit cards are accidentally swiped more than once. If you see the same transaction printed more than once on your monthly statement, call your credit card company immediately.
Your purchase never arrived: If you have purchased something and it has not arrived within a reasonable amount of time, you should contact the seller and ask what has happened to your order. If you don’t get an answer, call your credit card company and ask them to investigate. If your claim is verified, a refund may be issued to the cardholder.
Your purchase arrived but does not fit the description provided by the seller, i.e. defective or poor quality items: Be aware of the seller’s refund policies. You should contact the seller and make arrangements to return your purchase for a replacement or a refund, stating in writing your choice. Make sure you have proof the item was returned and be prepared to describe how your item did not fit its description. If this is unsuccessful, you should contact your credit card company and ask them to investigate the situation.
You continue to be billed for a recurring charge after having cancelled the service: This can sometimes happen with health club memberships or organizations that process a monthly fee on your credit card. You should contact the organization and ask why the charge is still showing up on your statement. You should then receive a refund. If this does not work, contact your card company directly and provide proof of cancellation. Your card company will initiate an investigation of the enquiry and will request you to send a signed letter or affidavit of what happened. If your card company decides that the transaction is unauthorized, the amount of the transaction may then be refunded to you.
Your credit voucher was issued by the merchant but has not shown up on your credit card statement: redit vouchers may take up to 45 days to appear on a statement. If it has been 45 days or more since the date of the credit voucher, you should contact your credit card company and provide a copy of the credit voucher. Your credit card company will investigate and refund you if appropriate.
Many thanks to the Credit Counselling Society for reviewing this document.