Credit cardholders in Singapore can now heave a sigh of relief.

New measures were announced by the Association of Banks in Singapore (ABS) today that limit credit cardholders' liability for unauthorised transactions to $100.

From November 1 of this year, the following measures to further limit credit cardholders' liability arising from fraud will be put in place.

• The maximum liability for cardholders due to unauthorised charges prior to notification of credit card loss to card issuing banks will be capped at $100. This is provided the cardholder has not acted fraudulently or was not grossly negligent, or did not fail to inform the bank as soon as he or she became aware that the card was lost or stolen.
• Card issuing banks will investigate and may consider waiving the $100 charge on a case to case basis. Interest charges and late fees will not be levied during the period when investigations are being carried out.
• If a cardholder was involved in fraud or acted negligently, he will be liable for 100% of unauthorised charges or amounts up to his/her credit card limit whichever is lower. Interest charges and late fees will be levied on the unauthorised charges if the cardholder is found to have acted fraudulently.
• Should the cardholder be found to be grossly negligent but the cardholder refuses to settle the outstanding charges, card issuing banks reserve the right to terminate the credit card services of the cardholder as well as pursue litigation actions to recover the amount.

Currently, cardholders are liable for unauthorised transactions effected prior to the bank being notified of the loss/theft of the credit card. However, according the the ABS, card issuing banks will usually waive the cardholder from liability for any fraud arising if the cardholder did not commit fraud or was not negligent.

Cardholders are reminded to notify the affected bank immediately when they become aware that their cards or card information have been lost or stolen.

Meanwhile, banks will continue to monitor merchants for fraudulent transactions. If fraud is due to the negligence of the merchant, the merchant acquiring bank will take appropriate action against the merchant.

Related links:

» 4 out of 5 shops didn't check card signatures
» Customers are the first line of defence
» Safeguarding accounts a collective process
» Unfair to put entire liability on shoulder of cardholder
» Set limits for credit card liability before consumers vote with their feet
» Q: Can you live your life without a credit card?
» Credit cards: Better fraud protection vs good deals
» More credit card fraud if consumers less liable?
» Set up agency to protect bank customers

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