If money is withdrawn from a credit card without the cardholder's knowledge, will the bank be held responsible?

One of the most significant problems credit card users may encounter is having transactions made on their card without their knowledge or consent. Even if the card is physically present, transactions can still be made online due to unauthorized access to card information or loss of the card.

So, in such a situation, who covers the damages? Is the bank always responsible? Or is the cardholder responsible for the transactions themselves?

The answer depends on how the transaction took place and whether the cardholder fulfilled their obligations.

What is an unauthorized credit card transaction?

Transactions made with a credit card without the cardholder's knowledge or consent are generally considered unlawful or unauthorized use

For example;

• Online purchases made without the cardholder's knowledge,
• The card being stolen and used,
• Card information being compromised,
• A transaction that the cardholder did not make is reflected on their statement
• Transactions made online using card information

Situations like these can lead to disputes.

However, the mere fact that a transaction was made by a merchant not known to the cardholder does not, by itself, definitively prove that the transaction was unauthorized. The specific circumstances of the case must be examined separately.

Will the bank cover the damages in all cases?

No.

In Turkish law, cardholders also have obligations to protect their card and security information. According to Article 16 of the Bank Cards and Credit Cards Law No. 5464, the cardholder is obligated to protect their card and necessary security information and to take measures to prevent their unauthorized use. Furthermore, the card-issuing institution be immediately informed .

Therefore, in assessing liability between the bank and the cardholder, not only the fact that the transaction took place but the cardholder's fault and the timing of notification are important.

What is the cardholder's responsibility if their card is stolen?

Article 12 of Law No. 5464 regulates the liability of the cardholder for damages arising from unlawful use that occurred within 24 hours prior to notification, in the event of loss or theft of the card or card information

The law limits this liability to 150 TL.

However, this limitation is not absolute. The limitation does not apply if the unlawful use is due to gross negligence or intent on the part , or if the notification obligation has not been fulfilled.

Therefore, it is extremely important for anyone who learns that their card has been lost or stolen to notify the bank as soon as possible

I have the card physically, but what if a transaction was made online?

This is a particularly common type of dispute today.

Even though the card is physically in the cardholder's possession, transactions can be made online if the card number, expiration date, or other card information is obtained.

Law No. 5464 stipulates that cardholders cannot be held responsible for unlawful uses of funds for the purchase of goods or services made through various communication channels or order forms, which do not require the issuance of a receipt.

However, in the specific case, what matters is whether the transaction actually occurred without the cardholder's knowledge, how the security verifications were carried out, and whether the cardholder fulfilled their own obligations.

What should be done when a suspicious transaction is noticed?

If you see an unauthorized transaction on your card statement or in the bank app, contact your bank immediately .

The basic steps to follow are as follows:

1. The bank must be informed immediately.
2. If necessary, the card should be deactivated and a new card requested.
3. A chargeback must be filed with the bank for the suspicious transaction .
4. SMS, email, statement, and bank application records related to the transaction should be kept.
5. If there is suspicion of fraud or other crime, contacting the judicial authorities should be considered.

According to Article 11 of the law, objections regarding credit card transactions can be made to the card issuer within 10 days of the due date of the statement ; the objection must specify which elements of the statement are being objected to and why. Statements not objected to within the specified time become final. However, the same article also states that the finalization of the statement does not eliminate the right to sue under general provisions.

Is the bank obligated to provide transaction records?

Card-issuing institutions have legal obligations regarding records of card usage.

Institutions issuing cards under Law No. 5464 are obligated to inform the cardholder at the time of card issuance and, upon request, to provide records of transactions within the timeframes stipulated by law.

These records can be important for assessing whether the transaction was actually carried out by the cardholder.

What can be done if the bank rejects the application?

If the bank rejects the transaction dispute after reviewing the case, different legal avenues may be pursued depending on the nature of the incident.

In cases where the cardholder is a consumer, the Consumer Arbitration Board or the Consumer Court may be the appropriate legal avenue, depending on the amount and nature of the dispute.

Furthermore, depending on the nature of the dispute, applications made to the bank, transaction records, and other evidence may be important for future legal proceedings.

The amount of the dispute, the nature of the transaction, and the legal status of the parties should be considered when determining which legal course of action to take

Why is cardholder fault important?

In unauthorized transaction disputes, one of the key issues is whether the cardholder has violated their security obligations.

For example, sharing one's card PIN or verification code with a third party, failing to take necessary precautions to secure the card, or failing to report a suspicious transaction to the bank after becoming aware of it can all be important factors in assessing liability.

Specifically, Article 12 of Law No. 5464 clearly stipulates that the 150 TL liability limit will not apply in cases of gross negligence or intent on the part of the cardholder

Therefore, it is incorrect to automatically conclude, "I did not perform the transaction, therefore I am not responsible in any way.".

Why is notifying the bank important?

Acting quickly when unauthorized activity is detected is important for two reasons.

Firstly, this can prevent the card from being used excessively.

Secondly, the notification given to the bank and the timing of that notification could be important evidence in any dispute that may arise later.

Therefore, when a suspicious transaction is noticed, it is advisable to file a complaint through the bank's written or electronic channels, in addition to the phone call, and to keep records of the complaint

Conclusion

It cannot be said that the bank is automatically liable for all losses incurred if an unauthorized transaction is made on a credit card . Liability is determined based on how the transaction was carried out, whether the cardholder took the necessary security measures, when the bank was notified, and other specific circumstances of the case.

particularly important for cardholders to immediately inform , under Law No. 5464. The law stipulates a limit of 150 TL for liability arising from unlawful uses within the 24 hours prior to notification under certain conditions; however, this limit may not apply in cases of gross negligence, intent, or failure to fulfill the notification obligation.

Therefore, when you see a transaction on your credit card statement that you believe is not yours, to immediately report it to the bank and initiate the dispute process, instead of ignoring it .

Related article: Ways to get a refund for EFT and FAST fraud.