Liability When Debit Card Given for Use

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Question:

When access is given on a device, is the customer liable for any transactions that happen on their device?

Answer:

It depends. “A” gives “B” her card and asks that B get her $100 from the ATM.

B goes to the ATM and withdraws $200. B abused her authority and since A never notified the bank that B’s authority was rescinded, A is on the hook.

Now assume B goes to the ATM, withdraws $100 and returns the card and cash to A. A “secures” her card in her unlocked desk drawer where it always is placed. B later takes the card without permission and goes to an ATM and makes a withdrawal. In this case B committed fraud and stole the card. The authority to transact business for A was ended. That would be a valid claim.

If the question was one of evergreen authority because at some point in time B was given the card and code, that does not exist. Once A recovered the card that authority ended.