California Civil Code Section 1748.30-1748.31
1748.30. For purposes of this title, the following definitions
(a) "Accepted debit card" means any debit card which the debit
cardholder has requested and received or has signed, or has used, or
has authorized another person to use, for the purpose of obtaining
money, property, labor, or services. Any debit card issued in
renewal of, or in substitution for, an accepted debit card becomes an
accepted debit card when received by the debit cardholder, whether
the debit card is issued by the same or by a successor card issuer.
(b) "Account" means a demand deposit (checking), savings, or other
consumer asset account, other than an occasional or incidental
credit balance in a credit plan, established primarily for personal,
family, or household purposes.
(c) "Adequate notice" has the same meaning as found in subdivision
(k) of Section 1747.02.
(d) "Debit card" means an accepted debit card or other means of
access to a debit cardholder's account that may be used to initiate
electronic funds transfers and may be used without unique identifying
information such as a personal identification number to initiate
access to the debit cardholder's account.
(e) "Debit card issuer" means any person who issues a debit card
or the agent of that person for that purpose.
(f) "Debit cardholder" means a natural person to whom a debit card
(g) "Unauthorized use" means the use of a debit card by a person,
other than the debit cardholder, to initiate an electronic fund
transfer from the debit cardholder's account without actual authority
to initiate the transfer and from which the debit cardholder
receives no benefit. The term does not include an electronic fund
transfer initiated in any of the following manners:
(1) By a person who was furnished the debit card to the debit
cardholder's account by the debit cardholder, unless the debit
cardholder has notified the debit card issuer that transfers by that
person are no longer authorized.
(2) With fraudulent intent by the debit cardholder or any person
acting in concert with the debit cardholder.
(3) By the debit card issuer or its employee.
1748.31. (a) A debit cardholder shall be liable for an unauthorized
use of a debit card only if all of the following conditions are met:
(1) The card is an accepted debit card.
(2) Except as provided in subdivision (b), the liability is not in
excess of fifty dollars ($50).
(3) The debit card issuer has given adequate notice to the debit
cardholder of the potential liability.
(4) The debit card issuer has provided the debit cardholder with a
description of the means by which the debit card issuer may be
notified of loss or theft of the card.
(5) The unauthorized use occurs before the debit card issuer has
been notified by the debit cardholder that an unauthorized use of the
debit card has occurred or may occur as a result of loss, theft, or
(6) The debit card issuer has provided a means to identify the
debit cardholder to whom the debit card was issued.
(b) Notwithstanding subdivision (a), if the debit cardholder fails
to report an unauthorized use that appears on a periodic statement
within 60 days of the debit card issuer's transmittal of the
statement, and if the issuer establishes that an unauthorized use
would not have occurred had the debit cardholder notified the issuer
within the 60-day period, the debit cardholder shall be liable for
the amount of each unauthorized transfer that occurs after the close
of the 60 days and before notice to the issuer. If the debit
cardholder's delay in notifying the debit card issuer was due to
extenuating circumstances beyond the debit cardholder's reasonable
control, the time specified above shall be extended by a reasonable
period. For the purposes of this subdivision, examples of
extenuating circumstances include, but are not limited to, extended
travel, the death or serious illness of the debit cardholder or a
member of the debit cardholder's family, hospitalization, permanent
mental impairment, or serious physical impairment, unless the
circumstance did not reasonably contribute to the cardholder's delay
in notifying the debit card issuer within the 60-day period.
(c) A debit cardholder shall have no liability for erroneous or
fraudulent transfers initiated by a debit card issuer, its agent, or
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