Electronic Funds Transfer Act

• As stated by the Federal Trade Commission, the Electronic Funds Transfer Act protects a card user from liability to unauthorized charges to his debit card depending upon how quickly he reports the theft to the debit card issuer. The card user does not have to pay for any charges if reporting the loss of the card before any illegal use. If the card user discovers illegal activity on his debit card within two business days of reporting it, he will only be held liable for $50. If the card user reports it after two days, he can be held liable for up to $500. After 60 days, the card user is held liable for every transfer.
  
  

Fair Credit Billing Act

• The Fair Credit Billing Act provides specific regulations regarding the card user's billing statement. If the card user examines his statement and notices errors or instances that may be credited to fraud, the FCBA requires the debit card issuer to take immediate action to rectify the situation after the appropriate notification. If the debit card issuer does not take action, the financial institution can be held accountable for noncompliance with state and federal laws.
  
  

Credit Card Fraud Act

• When law enforcement catches the thief, she faces strict fines and jail sentences under the Credit Card Fraud Act. The Credit Card Fraud Act imposes these penalties for any person convicted of unauthorized debit card use. This regulation requires the Secret Service to investigate all debit card violations, including the use of code and account numbers to receive products or services.
  
  

Issuer Contact

• Under both the Electronic Funds Transfer Act and the Fair Credit Billing Act, the card user has the right to contact the debit card issuer directly if suspecting unauthorized use of a stolen debit card. Some companies offer a registration service to the card issuer for a fee. This registration service contacts the card issuer in case of suspicious debit card activity and also contacts the debit card issuers on the card user's behalf. But under both federal regulations, this registration service is not required and is up to the card issuer's discretion.