What to Do If You Lose Your ATM Card

Typically, banks and credit cards provide information regarding the steps to take if you ever lost an ATM card, which would also cover a card being stolen.  While this might seem like a straightforward situation, it is important to read the terms of a debit or ATM card when you open an account at a bank or credit union.  The reason is that responsibility for a lost ATM card may be yours or you might have some protection from the financial institution.[br]

Typically, banks and credit cards provide information regarding the steps to take if you ever lost an ATM card, which would also cover a card being stolen.  While this might seem like a straightforward situation, it is important to read the terms of a debit or ATM card when you open an account at a bank or credit union.  The reason is that responsibility for a lost ATM card may be yours or you might have some protection from the financial institution.[br]

Typically, banks and credit cards provide information regarding the steps to take if you ever lost an ATM card, which would also cover a card being stolen.  While this might seem like a straightforward situation, it is important to read the terms of a debit or ATM card when you open an account at a bank or credit union.  The reason is that responsibility for a lost ATM card may be yours or you might have some protection from the financial institution.[br]

For instance, some banks and credit unions actually charge for a lost ATM card or only start paying back money taken from an account at a certain dollar amount.  However, if a lost ATM card were reported within the first two days, the government requires that all banks and credit unions keep the liability at $50.  Unfortunately, many people have no idea a card has been lost or stolen until money is gone from the account, which is often beyond the two-day period.  Therefore, if the issuing bank or credit union will only cover damages over $200 that means you lost $200.

In fact, some banks and credit unions do not provide any protection at all for a lost ATM card.  This is why reading the terms and conditions or asking the financial institution prior to opening the account would be to your benefit.  Just imagine having $2,000 in your account and you end up with a lost ATM card but you do not realize the problem for a week.  By that time, all of the money in your account has been withdrawn and with the bank or credit union providing no protection, you just had your account wiped out without having any recourse.

Another important consideration in the case of a lost ATM card is if it is linked to both a checking and savings account.  While having one card that could withdraw money from both a checking and savings account would be beneficial in a number of ways, it also puts you at risk, especially if a lost ATM card is not protected by the bank or credit union.  In this case, not only could your checking account be wiped out but also the savings account associated with the card.

Now, once you have a lost ATM card, banks and credit unions are allowed by the government to take up to 20 days to cover the stolen money according to their regulations.  Again, if you read the terms and conditions, you will find that most reputable financial institutions provide provisions much quicker.  In addition, if you had any insufficient checks, fees would not be covered.  However, some banks and credit unions will also take care of these fees as a part of customer service.

Having a lost ATM card is frustrating and sometimes, scary.  If you know that your bank or credit union only covers amounts taken from your account at a certain dollar amount or they have no protection at all, it is imperative that they be contacted immediately when learning of the lost or stolen card.  Never keep your ATM pin number in your purse or wallet in that having the information in the same place, as the card would make it much easier for the lost ATM card to be used to wipe out all your money.