Legal implication of using somebody else’s Credit and debit cards

It’s not illegal to give someone permission to use your card because it is a breach of your card contract and there are risks. Credit and debit cards are printed with an authorised cardholder’s name. If anybody else uses the card, the card user or cardholder faces serious problems.

If you give your card to someone else, you open yourself to the risk of transactions being made on your card which you didn’t expect. It will be difficult for you to dispute such transactions with your bank or a merchant.”

If you have got your hands on somebody else’s cards, you’re heading to jail . It doesn’t matter what you intend to use the cards for – if you can’t prove that you have permission, you’ve got problems. That means you can’t ‘borrow with intentions to repay the cardholder, and you can’t even use the card for benefits that won’t cost the cardholder any money.

Using somebody else’s card is risky. Nobody really knows if you got permission ahead of time, so the default assumption may be that you are committing fraud.

If a merchant asks for identification and you can’t provide it, things might get complicated—the card might be taken away, the police might get involved, and so on. What is more, the person who gave you the card can later claim that you took it without permission  should case  your relationship sours,.In many cases, transaction records and store surveillance video can be used to bring charges against you.

Source: thebalance.com.

1. Unauthorised use

Whenever, your card gets used without your permission, please report the problem to your bank/card issuer immediately and also report the unauthorised activity to the police so you can make a claim with your card issuer, you may need to file a police report and provide a copy of the report. The individual who used the card may face criminal charges.

Using cards without permission

When permission is not given, using somebody else’s debit or credit card is a form of identity theft. Laws are broadening definitions of what constitutes ID theft, and penalties for those activities are getting more severe.

Using a card with permission

If your bank or credit card company finds out that you’re lending out your card, there’s a chance that your account will be closed.

Unexpected charges: There’s no guarantee that the card will only be used in the way you intended. It’s hard to recover funds if you let somebody use your card because the usage was not unauthorised. Banks won’t reimburse you if somebody drains your account at an Automated Teller Machine after you must have given the person permission to use your card and the PIN.

Risk for ‘borrowers’: Using somebody else’s card is risky. Nobody really knows if you got permission ahead of time, so the default assumption may be that you’re committing fraud.

Get authorised:

Instead of using somebody else’s credit card or lending out your card, take advantage of ‘authorised users’. At an account holder’s request, credit card issuers will provide additional cards with somebody else’s name. The account still belongs to the primary cardholder, who is responsible for the payment, but the authorised user is allowed to use the account. If that user is asked for identification, everything will match correctly.

It may also be illegal to possess information that can be used for access to accounts and account information such as:

Usernames and passwords

An individual’s mother’s maiden name (you might know this about anybody, so the facts and circumstances are important—a spreadsheet with this information is, of course, more problematic than your casual knowledge of a friend’s family)

The unauthorised possession of any “financial transaction device,” such as:

Prepaid cards, Bank account numbers and routing information, Personal identification numbers (PINs), Card numbers (you don’t necessarily need the card itself), Cheques, Money orders and other devices could also trigger identity theft charges.

To the extent that people do give out their cards to friends and their friends go on a spending binge, the card holder is then going to have a problem and is relatively unlikely to try to seek indemnity (because they’d have to lie and explain why they didn’t call the card in as lost or stolen

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