Permission is beneficial, but there are risks associated with the practice. Payments can be made with credit and debit cards. They eliminate the need to carry cash and can be used online and in person at most merchants. This convenience, on the other hand, may tempt people to share their cards. Although it is not only possible but also extremely simple to borrow or use another person's debit or credit card, not all banks or credit card companies will allow you to do so even if the issuer doesn't prohibit the practice, both the person lending and the person using the card risk getting into trouble if the issuer or other authorities find out.
Understanding the Terms of Your Credit Card
Examine the cardholder agreement for your debit or credit card to see if sharing your card with a relative, a friend, or an employee is permitted. Most card issuers require you to make every effort to avoid unauthorized card use, which is when your debit or credit card is used without your permission. However, not all card issuers consider card sharing to be unauthorized use. Some issuers make it impossible for anyone who isn't listed on the card to use it. Others point out that allowing someone else to use your card does not constitute unauthorized use, but you will be responsible for any charges they make.Using a Permissioned Card
Getting permission to use someone else's card or allowing someone to use yours is preferable to not doing so. Still, it's critical to do your homework and approach the situation correctly.Obtaining Authorization
If a card issuer allows the cardholder to grant permission to another person, the cardholder should consult the cardholder agreement for instructions on how to do so. Some states require you to authorize someone else to use your card simply by lending it to them or giving them your account number. If there are no specific instructions for granting permission for card use, the cardholder should give the borrower a signed note granting permission to use the card. If a merchant suspects you aren't the cardholder and questions you, show them the note as proof. Important: Unauthorized transactions can cause merchants to lose money. If the authorized cardholder is unaware of and later learns about a card purchase, merchants risk a chargeback, which is a disputed charge made to the card issuer that can result in revenue loss. If the borrower is caught using a card without their name on it without a permission note, the burden may fall most heavily on them. Because a merchant cannot know whether you received verbal permission from the cardholder ahead of time, the default assumption may be that you are committing fraud. If you don't have identification when a merchant asks for it, they may call the cops or take your card away. Worse, the person who lent you the card might accuse you of taking it without their permission later (if you spend too much, for example, or if your relationship sours). Tip: To avoid the appearance of impropriety when using someone else's card, obtain a signed permission note from the cardholder.Using Cards Contrary to the Agreement
Even if you obtain permission to use someone else's card (or allow someone to use your card), if doing so violates the cardholder's card issuer's rules, the cardholder will be in violation of the agreement they signed with the issuer. Perhaps no one will notice, but if a bank or credit card company discovers that a cardholder has improperly allowed someone else to use the card, the bank or credit card company may charge the cardholder fees, reduce card limits, close the account, or take legal action against the cardholder.Taking Care of Unexpected Charges
Because the use of your debit or credit card may not be considered unauthorized, it may be difficult to recover funds from unexpected purchases if you give someone permission to use it. Your bank is unlikely to reimburse you if someone uses your card or PIN to drain your account at an ATM after you have given them permission to do so. Similarly, credit card companies hold you liable for charges made by someone you authorize to use your card. However, if you let the issuer know, they might take back the permission you gave someone. Warning: Even when your cardholder agreement allows it, lending out your card is dangerous. There's no guarantee that the card will be used for the expenses you intended to cover.Adding a Trusted User to the System
Use "authorized users" instead of borrowing or lending someone else's debit or credit card. At the request of an account holder, credit card issuers can provide additional cards with a different person's name printed on the front. The primary cardholder retains ownership of the account and is responsible for paying off any outstanding balances. Still, the authorized user is permitted to make purchases and is not responsible for the debt. Everything will match correctly if the authorized user is asked for identification.Without Permission, Using Cards
If you use another person's credit card without their permission, you're putting yourself at risk.Getting to Know the Penalties
It doesn't matter what you plan to do with the cards; if you can't prove that you have permission, you could be in trouble. That means you shouldn't use the card for small purchases, "borrow" to repay the cardholder, or even use the card for free benefits. It is not a good idea to use the card to gain free access to cardholder events or services. Unauthorized use of a debit or credit card without the cardholder's permission is considered fraud and may result in financial or criminal penalties at the federal and state levels. Theft of card information, also known as identity theft, has its own set of laws.Taking Care of Inadvertent Possession
If you receive cards as a result of a mistake or find them on the street, you could argue that you never intended to steal them. Whatever the case may be, keeping anything that could make you appear dishonest is a bad idea. Instead, report any cards you find to your local police department, the bank, or the credit card company that issued them.Unauthorized use is to be reported
Make sure no one else has access to your card on a temporary basis in order to prevent unauthorised use. If you notice a transaction on your card that was made without your permission, follow these steps:- Notify your card issuer right away if there's a problem. The company with whom you applied for the card is your card issuer. However, you should contact your bank if your checking account is linked to a debit card. Prior to filing a missing card report, you will never be held liable for more than $50 in unauthorised credit card charges; however, you must dispute a debit card charge within two days of the transaction to keep your liability to $50; after that, it increases to $500.
- Change your debit PIN and your online account password.
- Examine your bank statements and credit report for any unusual activity.
- If you discover that you have been a victim of identity theft, contact your local police department to report the unauthorized activity. You may be required to file a police report and provide a copy of the report in order to make a claim with your card issuer.
Most Commonly Asked Questions (FAQs)
Is it against the law to use another person's credit card?
It's not illegal to use another person's credit card if their cardholder agreement allows it and you have the cardholder's permission. Make sure the cardholder reads their credit card terms before allowing you to use them.How much money can I put on another person's credit card before it becomes a crime?
Even making a small purchase with the card is illegal unless the card owner has given you explicit permission to do so. This is a type of fraud, and even a small transaction can result in criminal and financial consequences.