The loss of a payment card must be reported immediately
The cardholder must report the loss of a card without undue delay. Instructions and a telephone number can be found i.a. in the terms of using the card. It is advisable to store the telephone number in a mobile phone, for instance. After a report is made, the card must not be used even if it is found.
The cardholder's responsibility when a card is lost
A payment card must be used and stored responsibly. The card and its PIN number must not be kept in the same place - e.g. a wallet. The card must also not be passed on to another person. In addition, the cardholder must regularly make sure that the card is not missing.
The responsibility of the cardholder for the use of the card generally ends when the consumer has made a report of the disappearance of the card or of unauthorised use of the card to the granter of credit or to a party stipulated by the granter of credit.
The consumer can be held responsible for the disappearance, theft, or misuse of a card if he or she
- has acted carelessly
- has allowed an outsider to use the card
- delays in reporting the loss of the card
If the cardholder exercises care, he or she will not be held responsible for the unauthorised use of the card. Even mild lack of care on the part of the cardholder results in liability limited to EUR 50. If the cardholder is seen to have acted deliberately or with aggravated negligence, he or she will bear full liability.
The holder of a payment card may be released from liability due to the unauthorised use of a means of payment,
- if the payee has not appropriately verified the payer’s right to use the means of payment.
- when a service provider, with whom the holder of a payment card has made a contract concerning the means of payment, has not required strong authentication in order to authenticate the payer.
If a payment card has been used without authorisation and the consumer is not responsible for the use, the bank must refund the payment amount to the consumer’s account immediately and at the latest on the next working day after the bank noticed the payment or it was notified of the payment. The bank maintaining a payment account is also obliged to make a refund when the payment has been initiated via a payment initiation service provider.
Withdrawal and payment limits reduce the extent of financial damage
The security limits of accounts and cards may prevent more extensive financial damage if a payment card is stolen or otherwise used without authorisation. Withdrawal and payment limits can be set and adjusted through a bank. Geographical limitations may also be set on the use of a payment card, and online payments can only be allowed as necessary.
More information from the Finnish Financial Ombudsman Bureau (FINE)