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To cancel a lost or stolen debit card, contact the issuing financial institution, review recent transactions, and freeze the account balance if necessary. Procedures may vary, so consult the institution for specific instructions.
Debit cards are one of the most common means of conducting financial transactions today. Consumers use cards issued by their banks, as well as international debit cards when they travel, and even virtual debit cards to use for online purchases. Unfortunately, cards are sometimes lost or stolen, making it necessary to cancel a debit card as quickly as possible. While the exact process will vary depending on the procedures required by the card issuing institution, there are a basic set of steps that will likely apply in most situations.
Begin the process by contacting the financial institution that issued the card. If the institution is your local bank, a phone call or visit to a local branch will allow them to take immediate action and protect your account balance. In general, the process to cancel a debit card begins by recording the card user’s notification that the card was lost or stolen. This immediately stops further transactions, effectively preventing an unauthorized person from making purchases on the card.
The next step in the process will be to review the latest transactions shown in the card activity. This is useful in two ways. First, you’ll know that all your pending transactions have been settled before you start canceling a debit card. Also, if one of the last transactions was unauthorized and the amount is significant, the matter can be reported to law enforcement officials immediately. From there, the bank can implement its policies to minimize your loss, which may involve a full refund of the unauthorized purchase, or refund all but a fixed amount of that purchase.
As a final step in the basic process for canceling a debit card, the institution may or may not freeze the account balance for a short period of time. When the card is associated with a checking or savings account, there is little chance of this happening, as the canceled card can no longer be used to access account balances. With prepaid debit cards, you need to create a new account and transfer any remaining balances to that account. This added protection helps eliminate the possibility of the lost or stolen card being used as a credit card somewhere that doesn’t use real-time card verification protocols, and a claim being filed against that balance for payment.
Since banking laws vary from country to country, it is important to consult your bank or other institution on how to cancel a debit card quickly and efficiently. The institution can provide you with instructions on how to report the loss, what information you need to have available, and how long it takes to complete the write-off once it is initiated. The institution can also provide you with information about the extent of its liability if the missing card has been used fraudulently.
Smart Asset.
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