Debit Cards: Beware of Your Liability Limits

There seems to be quite a bit of confusion as to what your liability limits are on debit cards when I speak to people. Most of my friends immediately say $50, but they’re thinking about federal limits on lost or stolen credit cards.  Debit cards are as the proverbial saying goes, “a horse of a different color”.  Here’s the scoop.

If you report a lost or stolen debit card before it is used, you are not responsible for any unauthorized withdrawals. Your liability is $0.

If you report the loss within 2 business days of discovering it missing, your liability limit is $50. Your liability goes up to $500 if you report it after 2 but before 60 days.