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|6 September 2009
Singapore banks to help limit credit cardholders' liability
The Association of Banks in Singapore (ABS) announced on Friday new measures to limit credit cardholders' liability for unauthorised transactions, reported Chinese news agency Xinhua.
From Novmber 1, the maximum liability for cardholders due to unauthorized charges is 100 Singapore dollars (about $69), prior to notification of credit card loss to card issuing banks, a statement by ABS said.
This cap is applicable provided the cardholder has not acted fraudulently, was not grossly negligent or has not failed to inform the card issuing bank after becoming aware that the card is lost or stolen.
At the same time, card issuing banks will investigate and may consider waiving the amount at their discretion for unauthorised charges where appropriate.
Currently, cardholders are liable for unauthorised transactions effected prior to the bank being notified of the loss and theft of the credit card. However, where investigations reveal that the cardholder has taken all reasonable precaution and is proven to be involved in any fraud, card issuing banks will usually waive the cardholder from liability for any fraud arising.
These measures complement banks' current practices where investigations are conducted to determine liabilities for unauthorised charges, and fraud detection systems where banks alert customers of suspicious or high risk transactions.
ABS said that cardholders are generally diligent in safeguarding their credit cards and in reporting the loss or theft of their credit cards to the card issuing banks.
However, there have been cases where fraud took place due to the negligence of merchants, such cases are not widespread as there are already measures in place to curb such incidences making the merchants accountable for such oversight.
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