Here's What Happens When You Lose Your Credit Card

I've had an interesting month. I lost my passport while traveling and then had a mad (and costly) scramble to replace it in time for a flight. It made me think about what happens when you lose important items, whether that's your phone, driver's license, or credit card. 

The good news is that credit cards carry a lot of protection against unauthorized charges. Plus, while losing a card is stressful, it's relatively easy to get a replacement.

What happens when you lose your credit card

If your credit card is lost or stolen, it can be used to make purchases until it is canceled. To avoid this, contact your bank as soon as you realize your card is missing. Your card issuer may also freeze the card if it picks up suspicious activity. 

Once you've canceled the card, it's a question of how you get a new one. Then you'll need to be on the lookout for fraudulent activity. Here's how that might play out.

1. Cancel your credit card

To cancel your card, you can call your bank or card issuer, log on to your online account, or use your mobile app. Most top credit cards won't charge for any unauthorized charges. However, if your card issuer doesn't have zero liability, by law, the most you can be charged is $50. It's also worth following up in writing, just to be sure. If your card was stolen, you may also need to file a police report.

If you're not sure the card is gone, there may also be a solution. Some credit cards let you put a temporary freeze on the card. This can be useful if you've misplaced your card but think you might be able to find it. For example, you might be 90% sure you left your card at a friend's house, but want to hold any transactions just in case you're wrong. You can freeze a card by phone, your online bank account, or via the app.

2. Your card issuer will send you a replacement credit card

According to Experian, it can take up to 10 days to get a replacement card, depending on the card company. If you need your card quicker, you may be able to pay a fee to speed things up. Check to see if you need to do anything to activate the new card.

3. Update your mobile wallet and any automatic payments

Once you've got your new card in your hand, you may need to update any automatic payments with your new card information. This might include subscriptions, gym memberships, or other bills. You might look back through recent statements to make sure you catch everything. If you have your card stored in a mobile wallet app, make sure you update this information too.

4. Pay attention to your credit card statements

In theory, your new card should smoothly replace the old one and your card issuer will deal with any fraudulent transactions. However, it's worth being extra vigilant for a time. If you see any strange transactions, report them immediately. It's also a good idea to get a free copy of your credit report from all three credit bureaus just in case someone is using your information to open a fake account in your name.

What if you lose your card when you're abroad?

If you lose your credit card when traveling, the process is very similar to the one listed above. The biggest difference is that you may not be home to receive your new card. Plus, you may need to get the replacement quickly if you're relying on it to pay things like your hotel bill or other costs. The best travel credit cards will send a replacement to an international address free of charge. Others may charge you, particularly if you need the card quickly.

How to minimize lost credit card pain

One of the simplest ways to avoid being stranded if you lose a credit card is to have multiple credit cards. Don't keep all your cards in the same place, and think about which ones you want to carry in your wallet, particularly if you're traveling. If you lose your wallet, you don't want to lose all your payment methods at once. It may also be worth saving your backup card info in your mobile wallet. That way you can leave the physical card in a safe place at home and still be able to use it for payments if necessary. 

If you don't use banking apps, take a few minutes to note down the customer care numbers for your card. I have mine saved in my phone's contacts. That way you'll have all the information you need to quickly report the card lost or stolen. Check to see whether your card offers zero liability for fraudulent transactions. If it doesn't, see if you qualify for one that does.

Bottom line

Most of us lose things from time to time, including credit cards and other valuable items. The trick is to make sure it's a minor inconvenience rather than a major headache if it happens to you.