4 Things to Do Immediately if Your Credit Card is Lost or Stolen

Let's assume that you are about to make an important purchase – you reach into your wallet for your credit card and realize it's missing. What is your first reaction?

Faced with such circumstances, most credit card users would panic and immediately think about the worst case scenario. And for good reason too – after all a stolen credit card has the ability to cause a lot of damage, especially if it has a high credit limit and lots of available credit. Luckily, even if you lose your credit card, all is not lost. In the U.S., the Fair Credit Billing Act limits the liability of cardholders to $50 in the event of a fraudulent transaction. Moreover, in practice, nearly every credit card issuer waives this amount by offering a zero liability policy.

Nevertheless, here are four things that you should do if your credit card is lost or stolen:

1. Try to Locate Your Card

First, view your online account or call the card issuer to ascertain where you last used your card. Then, contact the merchant to find out if you left the card there, and if they are holding it for you.

2. Call Your Bank

In case you are unable to locate your card, you should immediately call your bank. Most banks or card-issuers allow consumers to temporarily suspend the use of their card. Also known as freezing, this is a great option for people who can't locate their card, but aren't ready to declare it permanently lost. Once you get your card back, all it takes a phone call to unfreeze your account.

Alternatively, you could cancel your card and request a new one. Mostly all banks and credit unions offer their customers free replacement cards, sometimes by overnight mail. However, they may charge extra for this service.

3. Contact Merchants that Have Your Credit Card on Their Records

If you have authorized any merchants to use your card for recurring transactions or monthly bill payments, you will need to update them if you freeze or cancel your cards. If you don't give these vendors your new card number, expiration date and/or CVV code, you may end up missing a payment, which in turn may lower your credit score.

4. Check Your Statement

Even after reporting your card lost or stolen, you should carefully scan your credit card statement in the subsequent months for any unauthorized charges. This is because the Fair Credit Billing Act can safeguard you from fraudulent charges only when they are reported to your credit card issuer.

It is also important for you to take steps to protect your card from being stolen in the future. For this, keep in mind the following points:

• Make sure that you know where your cards are at all times. Don't carry cards that you know you won't need – leave them at home in a secure place.
• Place your cards safely inside a wallet or purse instead of in your pocket. If the slots of your wallet have become loose or worn, consider purchasing a new wallet that will hold your cards securely. Keep your wallet or purse close to you at all times.
• Create a list that has the name and number of all your card-issuers. Keep this in a safe place so that you can reach the issuers if your card is lost or stolen in the future.

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