Credit card fraud law
Credit card fraud may be referred to many terms. It may be referred to credit card theft or any other credit card fraud. fraud includes various activities such as buying the goods or purchasing something without actually making payment to the party. Sometimes the user makes an unauthorized use of the card also. Many countries are facing the loss due to the credit card fraud. The total cost of credit card fraud in 2006 in United Kingdom was estimated to be 428 million.
The card may be lost by the actual user and may get into the hands of an unauthorized person who makes an unauthorized use of the card. Sometimes the merchants who receive data of a card from the user when she or he comes to him for a transaction may make unauthorized use of the card. Credit card fraud can take place in many ways such as internet, account takeover, or skimming and a fraud may be committed. credit card thieves can be found through methods like online transactions.
The punishments for credit card thieves in U.S. is stringent. According to the U.S. credit card law, the victim is also responsible for the fraud that took place and he may be charged up to $50. the credit card thieves have to pay the entire cost of the credit card and also they are charged with a fee called as charge back fee or merchants payback insurance. The credit card companies also must take some amount of responsibility by paying a small amount for preventing the fraud.
Most of the merchants are not satisfied with the law s and procedures with regards to credit card fraud because they believe that they are not causing any substantial change to the society. They are still expecting changes or amendments to be made with regards to credit card flaws. The credit card industries today have opposed many of the law s implemented by the U.S. law. The merchants think that the deal made against them is not fair and hence they are unnecessarily suffering by paying amount. They do not share the fair right of raising voice against the fraud that take place.
The credit card law is applied to credit card companies, merchants and the credit card fraud s. Each one is answerable by law if the fraud takes place. But according to the following parties, the federal law and state law are not taking the corrective steps to prevent fraud.
In U.S. there are many fraud s taking place concerning the credit card, but the law is not able to reduce the intensity of crime. If you experience any case of credit card fraud, then report it directly to the Federal Trade Commission. The FTC investigates the fraud if the total value of the fraud does not exceed $2000. otherwise if the value of fraud exceeds $2000, then the local law takes the responsibility and conducts investigation.
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