Canadian Banks "Share the risk" with their customers.
So much for the $50 limit...Here is part of a CIBC Visa credit card agreement, for a Chip card:
"If a cardholder fails to comply with any obligation in the section entitled personal identification number (PIN) and someone other than the cardholder makes any PIN-based transactions on the Visa account, the cardholder will be liable for those transactions and any interest, fees and losses incurred...."
In the debit card agreement for the same cardholder, you will find this additional cautionary tale: "Contributing to unauthorized use: if someone uses your bank card or PIN without your authority but your actions (or inaction) contributed to that unauthorized use, you are responsible for all losses...."
We can always dismiss CIBC for it ineptness. But then, other banks are lining up to offer similar protections for you the consumer. Here is the number one bank with the $1 billion (exceptional) loss this quarter:
Guess where they are going to make up for their subprime losses?excerpt from a Royal Bank Visa credit line agreement for small business:
"We (the business cardholder) will not be responsible for debt charged to our account as a result of the fraudulent and unauthorized use of a card, cheque or account number, provided that we can establish to you (the bank) that we have taken reasonable steps to protect cards and cheques against loss or theft and to safeguard our PIN and other security codes in the manner set out in this agreement or as you (the bank) may otherwise advise us from time to time."