Common use of Cardholder’s liability for unauthorised use of card Clause in Contracts

Cardholder’s liability for unauthorised use of card. The cardholder shall be liable for the use of a lost card, or a card in the possession of an unauthorised third party, or for other unauthorised use of the card only if the unauthorised use results from the cardholder or someone else in possession of the card: a) surrendering the card or the access code to an unauthorised person; b) neglecting to comply with the obligations regarding the use of the card or the access code provided in section 4.2 (Prohibited use of the card) and section 10.1 (Responsibility for the card); or c) neglecting to inform the card issuer, without delay, if the card or access code is lost, a third party has gained possession of the card or access code without permission, or unauthorised use of the card or access code has taken place. The cardholder’s liability for unauthorised use of the card with regards to points b) or c) above shall not exceed fifty (50) euro. This limitation shall not apply if the cardholder or someone else in possession of the card has acted with intent or gross negligence. However, the cardholder shall not be liable for unauthorised use of the card or access code if: (i) the unauthorised use of the card or access code takes place after the card issuer has received a notification of the loss of the card or access code, a third party gaining possession of the card or access code without permission, or unauthorised use of the card or access code; (ii) the card issuer has neglected its obligation to ensure that the cardholder can make the notification referred to in section (i) above at any time; (iii) a payee fails to appropriately verify that the payer using the card has the right to use the card or access code; or; (iv) if the card issuer has not required strong costumer authentication of the payer. However, sections (i)-(iv) above do not limit the cardholder’s liability if the cardholder has deliberately made a fraudulent notification or otherwise acted fraudulently. Regardless of the cardholder’s negligence, the cardholder shall be responsible for the entire amount of any unauthorised transaction if the cardholder neglects his or her obligation to immediately inform the card issuer of such unauthorised transaction in writing as set out in section 14 (Reclamations) once the cardholder became aware of the unauthorised transaction and not later than within thirteen (13) months after the transaction was invoiced.