MasterCard® Rules Change for Cardholder
Liability
Prime Meridian Bank offers MasterCard® branded debit cards as a service for our clients.
Effective October 17, 2014, MasterCard® is changing its rules on Zero Liability for unauthorized
transactions. A summary of the changes is below:
Limitation of Cardholder Liability for Unauthorized Use
Current Rule
• PIN-based transactions not covered
Effective October 17, 2014
• PIN-based transactions covered
(including ATM and POS transfers)
Conditions for $0 Liability
Conditions for $0 Liability
• Exercise reasonable care in
• Exercise reasonable care in
safeguarding the card from risk of
safeguarding the card from risk of loss
loss or theft
or theft
• Report promptly the loss or theft to
• Report promptly the loss or theft to the
the Bank
Bank
• Report no more than two
• Removed: Two or more unauthorized
unauthorized uses within the past
uses stipulation
12 months
• Removed: Account in good standing
• Account to which the transactions
stipulation
were initiated with the card is in
good standing
• $50 liability limit applies if the
• Removed: $50 liability limit if the $0
conditions for $0 liability are not
liability conditions are not met*
met
* If the conditions for $0 Liability are not met, the liability limit may be up to $500.
MasterCard® Zero Liability does not apply to MasterCard® payment cards that are:
• used for commercial, business or agricultural purposes
• anonymous prepaid cards, such as store or gift cards, until such time as the identity of
the cardholder has been registered with the issuing bank.
To report a lost or stolen debit card, please call 866-546-8273.
If you have questions about this notice, please contact a Personal Banker at 850-907-2300.