Zero Liability does cover unauthorized transactions that arise from lost, stolen, compromised cards. However, any transactions performed by an employee who was issued a card are not considered unauthorized for the purposes of Zero Liability.
MasterCard Zero Liability states Unauthorized use means that you did not provide, directly, by implication or otherwise, the right to use your card and you received no benefit from the "unauthorized" purchase.
VISA Zero Liability states Financial institutions may exclude from the Zero Liability policy a transaction made by a person authorized to transact business on the account and/or a transaction made by a cardholder that exceeds the authority given by the account owner.
If an employee loses the card and there is fraud, Zero Liability will protect the business. The business is on the hook for an employee who goes on a shopping spree.
Note that this thread is from 2008. Zero Liability for business debit cards has changed over the years.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com