Bank of America Limits Liability
Protection for credit card holders worldwide?
The Bank of America has launched a global programme of protection for credit and cheque card holders. Debit cards are not mentioned in the scheme despite the noticeable increase in the use of such facilities.
BofA is aiming to encourage customers to use their cards for internet transactions, and recognises that fear of abuse is holding back the development of that market.
Subject to verification and to value limitations, the scheme provides for full re-imbursement of claims of fraudulent transactions made within 60 days of the customer receiving the statement, cards will carry the cardholder's photograph, software will examine expenditure patterns and draw attention to unusual transactions, a password system will be available in some US states and BofA promises not to release any customer information to any third party.
But little of this is either new or, even, any less than many customers expect. The novel aspect of this scheme is that it is international and does not depend on local laws to protect card users and that it will, seemingly, operate across the world. How this will work remains to be seen: one US bank is rumoured to cancel and re-issue cards issued in Singapore and used in Malaysia because of the scale of credit card fraud in Malaysia.
And the idea that a bank issues a pledge that it will not release customer information is surprising only in that it is felt necessary to express it.
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