Change in MasterCard Zero Liability Rule

The following revisions to the MasterCard Zero Liability Rule are effective October 17th, 2014:

  • MasterCard $0 Liability for unauthorized transactions will apply to PIN-based ATM and POS transactions.

  • MasterCard will now impose a reporting duty on the cardholder.  To be covered by the $0 liability limitation under the revised rule, the cardholder must promptly report the loss or theft after becoming aware of it.

  • The new rule eliminates the $50 liability limitation that applies under the current MasterCard rule if the conditions for $0 liability aren't met (i.e. if the cardholder does not promptly report the loss).  Under Regulation E, the cardholder could have up to $500 liability if the loss is not reported within 2 days of discovery, or unlimited liability if the unauthorized transaction is not reported within 60 days of the unauthorized transaction being reported on a periodic statement.

        TruStage Insurance Agency

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