In cases of lost or stolen credit cards used for unauthorised purchases, immediate reporting is crucial. India follows a strict three-day window for liability, aligning with RBI guidelines, while US policies offer different timelines and caps, emphasising the importance of swift action.
If a credit card goes missing and someone later uses it for purchases you did not make, the first question is who bears the loss. The answer depends largely on how quickly you tell the bank and whether the card has already been blocked. The safest step is to freeze or cancel the card at once, even if you only suspect it may have been lost.
Once the card has been reported missing and blocked, later unauthorised transactions are usually the bank’s responsibility, not the cardholder’s. Before that point, liability can depend on the bank’s fraud policy and the rules of the relevant payment system. In India, guidance linked to Reserve Bank of India rules says customers who report unauthorised transactions within three working days of being informed by the bank can have zero liability in certain cases, particularly where the loss was caused by the bank’s fault, negligence or a third party breach.
The timing matters because the three-day window is counted from the bank’s notification of the unauthorised transaction, not from the day the card went missing. According to Mint and RBI-linked consumer guidance, a complaint made between four and seven working days after that notice can still leave the customer with limited liability in some cases. By contrast, the U.S. government’s consumer guidance says that if a lost or stolen credit card is reported before any unauthorised use, the consumer is not responsible for those charges; if it is reported later, liability is generally capped at $50 per card.
Anyone who loses a card should act quickly: block it through the bank’s app, website or helpline, check recent transactions, and flag any unfamiliar payments as fraudulent. It is also wise to keep a record of the complaint number, date and time. If the card was stolen, a police report can help. In India, victims of financial fraud can also call 1930 and file a complaint through the national cybercrime reporting portal.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
