MasterCard Extends Zero-Liability Policy

MasterCard Extends Zero-Liability Policy

Debit and credit card company MasterCard announced that it will extend its zero-liability policy for U.S. cardholders to include all PIN-based and ATM transactions.

This comes on the heels of the data breaches at companies such as Target and Nieman Marcus.

Right now, the zero-liability protection currently covers card transactions that require a customer’s signature but does not apply if a cardholder’s personal identification number was used fraudulently. MasterCard says the Zero Liability coverage extension takes effect this October.

Credit cards issued in the United States by MasterCard will also feature assistance with resolving identity theft. Identity theft assistance will help consumers with cancelling a lost or stolen card, make credit reporting agencies aware of fraudulent activity, and investigate whether stolen confidential data appears online, says MasterCard.  Identity Theft coverage extension begins this July.

“Fraud prevention and detection is a 24/7 job at MasterCard. The changes that we’re making in cardholder protection combined with our efforts to move the U.S. payments industry to EMV chip technology will help deliver safer shopping experiences to consumers,” says Chris McWilton, president, North American Markets for MasterCard, in a written statement.