MasterCard today announced an industry first in its move to create one global Zero Liability promise for consumers and is extending it to all regions, outside the U.S., by early second quarter 2016.
The global Zero Liability promise was developed in consultation with issuers and regulators, extending protections beyond what may be required today. The changes increase and expand the minimum standard for consumer protection against unauthorized transactions and are designed to work together with, and subject to applicable local laws. The new program modernizes and simplifies the existing promise to meet the needs of today’s digital marketplace.
Zero Liability is designed to protect consumers from unauthorized transactions provided that the cardholder exercises reasonable care in safeguarding their card from risk or loss. In addition, the cardholder, upon becoming aware of such loss or theft, must promptly contact the bank that issued or provided their payment card.
The revised rule applies to:
• Transactions, including PIN-based transactions at the point of sale, ATM withdrawals and online or mobile transactions on MasterCard, Maestro and Cirrus-branded transactions;
• Transactions made using a consumer credit, debit, small business or prepaid cards registered to a consumer, as well as co-badged cards provided MasterCard is the brand of choice at time of purchase.
In Oct. 2014, MasterCard cardholders in the U.S., were the first to benefit from the updated rule.
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