If someone steals your credit card and goes on a buying spree, federal law limits your liability to $50. Most card companies will tell you that this fee is rarely applied, even though you can be charged that $50.
Many card companies now offer some form of fraud protection, but be sure it is a genuine guarantee before you accept it. There are a lot of phony companies making phony offers of "insurance" against someone else using your card, when in fact you are already protected.
You are supposed to report stolen or missing cards as soon as possible, or at least within 24 hours, for that zero-liability luxury. Once again, most card companies admit that they rarely enforce this requirement. However, it is best to call the card company as soon as you see the card is gone or the minute you see a bill with charges you never ran up.
Follow up the call with a letter confirming the facts of the loss or the phantom charges on your statement. Also include the details of your call (whom you spoke to, when, etc.). It's a simple "better-safe-than-sorry" policy.
Read all of the fine print when you get your card deal because there are always exceptions. Card companies are more liable to ask for their money if you have done something reckless, like not reporting the card stolen for a year or more.
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