 TITLE: Are Credit Cards Safer Than Debit Cards? CONTENT: Separate Laws Limit Your Liability\n----------------------------------\nWhen it comes to consumer protection, different laws come into play. For credit cards, the Fair Credit Billing Act (FCBA) ensures that you won't be responsible for fraudulently opened or used accounts. If someone took your credit card on a shopping spree, the most you'd be on the hook for is $50. In fact, most credit card issuers won't bother with charging you that amount at all. Once the fraud is identified, the erroneous charges are credited back to your account.\nThe law governing debit cards, though, is not quite so powerful. If a person used your debit card without your knowledge or authorization, your liability is protected by the Electronic Funds Transfer Act, which gives you the right to challenge fraudulent transactions. But you'd better act fast. As long as you alert the bank that your card was stolen or compromised before someone uses it, you won't be liable for any of the future transactions. Wait two business days after the fraud and you might have to pay up to $50. Miss that deadline and wait 60 days, and your liability increases to $500. Let 60 days pass and your liability is unlimited, which means all your money in the account that was taken might be lost for good.\nEven if you do report a fraudulent debit card charge in time, reimbursement can take up to two weeks. That can put you in a precarious position. You may not have enough cash to pay for such vital expenses as your rent, mortgage, food or gas. And if it prevents you from paying your credit card and loan bills, a late payment can wind up on your credit report, which will negatively affect your credit scores. END