I need a refresher. If the customer gives the card to a friend for a single purchase and the friend returns the card, but later the friend steals the card to make additional purchases, can we consider all purchases by the friend to be authorized? Does that include the ones that occurred without the cardholder's knowledge/permission?

If the friend returned the card then stole it, it would fall under 3 rather than 2.


2(m) Unauthorized Electronic Fund Transfer

2. Authority. If a consumer furnishes an access device and grants authority to make transfers to a person (such as a family member or co-worker) who exceeds the authority given, the consumer is fully liable for the transfers unless the consumer has notified the financial institution that transfers by that person are no longer authorized.

3. Access device obtained through robbery or fraud. An unauthorized EFT includes a transfer initiated by a person who obtained the access device from the consumer through fraud or robbery.