If someone steals your ATM card and uses it, you could be responsible for up to $500 or more. You may wonder, "Why so much more, if I’m only responsible for $50 on my credit card?"

The answer has to do with the law. The Electronic Fund Transfer Act (EFTA) states the amount you’re responsible for depends on when you report the loss. Here’s a look at how the EFTA treats different situations:

· You report your ATM card missing before it’s used. The law says you’re not responsible for any unauthorized withdrawals.

· Someone uses your ATM card before you report it. If you make the call within 2 business days of unauthorized use, you won’t have to pay more than $50. But you could owe up to $500, if you don’t report it within that time.

· You don’t report any unauthorized use within 60 days of the bank statement mailing. You could face unlimited losses. And not just withdrawals from your checking account. Someone could drain your line of credit for overdrafts, as well as any accounts linked to your ATM card.