There may be times when you’ll need to use someone else’s debit card with their permission. Perhaps you’re picking up groceries for a sick friend or borrowing money from a relative to pay a bill.
Before you swipe, however, it’s a good idea to make sure you understand this kind of transaction and what is actually allowed. The details may depend on your bank’s terms and conditions, but typically they prohibit or advise against this kind of usage. Read on to learn more.
Key Points
• Bank policy typically prohibits or cautions against using someone else’s debit card.
• Adding an authorized user permits card usage but makes the account holder liable for expenditures.
• Using a debit card without authorization constitutes bank fraud and must be reported right away.
• Reporting unauthorized transactions within 60 days may absolve you from most of the charges.
• Reviewing bank statements regularly and employing multi-factor authentication helps to prevent and detect unauthorized access.
Can I Use Someone Else’s Debit Card With Their Permission?
Each bank has its own terms of use for debit cards (and credit cards). Within such terms, the account holder and their friend or family member can determine if they’re allowed to lend you their card.
The terms will typically spell out what constitutes responsible card use, including this aspect.
Understanding Your Bank’s Terms for Card Use
When you opened your bank account, you probably received a physical and/or digital packet with all the terms and conditions. If you can’t find this, contact your bank, and they should be able to provide a copy. Or you might ask them directly what their policies are about lending your debit card to someone you know.
Within the terms and conditions for your debit card, the bank will likely state if you can let someone borrow your debit card. You may find that many financial institutions consider letting a friend or family member borrow a card to be unauthorized use — meaning it’s expressly forbidden.
A few may not expressly forbid sharing your card (and PIN number), though the terms and conditions will likely discourage it. If you choose to proceed, it’s important to understand who is responsible for the charges incurred in this way.
Checking Requirements for Giving Permission
While some banks may not explicitly prohibit you from letting someone borrow your debit card or ATM card, they usually include language in the terms and conditions that spells out your liability.
What does this mean? When you give someone your debit card and PIN, you are authorizing them to use it, and you will be responsible for whatever purchases they make. Perhaps you told them to take out $60 from an ATM, but they make an ATM withdrawal of $260. The amount withdrawn is your responsibility, and the bank cannot be liable. Due to the possibility of such situations, banks and credit unions prohibit or highly advise against sharing your card and PIN.
If you do give someone permission to use your card, it can be a good idea to sign a letter confirming your consent for the borrower to use the card. If a merchant challenges the borrower, they can present the signed letter to demonstrate they’re authorized to use the card. This may allow them to proceed.
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Alternatives to Letting Someone Borrow Your Card
So if using someone’s debit card with their permission is generally frowned upon, what are some alternatives? Consider these options:
• Give the person cash. For example, if you need your neighbor to pick up milk, coffee, and eggs at the grocery, consider giving them cash to cover the cost.
• You might be able to send someone money to cover a purchase using a peer-to-peer payment app.
If someone more regularly needs to spend money from your account — and you’re okay with it — you could check with your financial institution about adding that person as an authorized user.
Adding Someone as an Authorized User
If your bank lets you add an authorized user or signer on your checking account, that person will typically receive their own debit card in their name (it may have a unique card number or the same one as the account holder).
That person can spend money from the account as they see fit, but they do not have ownership of the account. That means that you’re on the hook for whatever purchases they make.
An authorized user is different from a joint account holder. In a joint account, both parties are responsible for the funds in the account and any debt incurred. This arrangement often suits couples who are merging their finances.
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What Happens If Someone Uses Your Card Without Permission?
Letting a friend borrow your card to buy a coffee is one thing; someone using your card without your consent is another. Unauthorized card use is a form of bank fraud and is illegal.
Reporting Unauthorized Use to Your Bank
If someone uses your card without your permission, contact your financial institution immediately to report the fraud and cancel the card. There is usually a dedicated phone number or department for this purpose.
The FTC also recommends following up with your financial institution in writing after your initial phone call (and saving a copy of the letter).
If you’re not satisfied with your bank’s response, you can submit a complaint with the Consumer Financial Protection Bureau.
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Getting Your Money Back
If you still have your physical card, you cannot be held liable for the unauthorized charges provided you report the issue within 60 days of receiving your statement showing the charges.
If your physical card was lost or stolen, however, you must report it lost or stolen before any fraudulent charges to avoid liability; otherwise, you may be responsible for some of the charges.
How much? That depends on when you report the loss:
• Within two days, you’re liable for up to $50 of charges.
• Between two and 60 days, you’re liable for up to $500 of charges.
• After 60 days, you’re liable for all the money that was spent.
As you can see, reporting unauthorized charges as quickly as possible is an important step. You will likely have your current card canceled and receive a new one.
Changing Your Bank Details
If your debit card and PIN were compromised, it’s a good idea to set up a new PIN for your replacement debit card. For good measure, you may want to change your password to keep your online bank account safe.
Opting into multi-factor authentication (MFA) is another good way to keep your bank account safe.
Reviewing Your Bank Statements
Regularly reviewing your bank statements for signs of suspicious or unauthorized charges is a good method for spotting fraud.
Even better, consider opting in to text or in-app notifications every time your card is used. That way, you’ll know the moment your debit card is used without your express permission or fraudulently.
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The Takeaway
Letting someone borrow your debit card may not be expressly forbidden depending on your financial institution, but in most cases, banks and credit unions advise against it. And if someone uses your debit card without your permission, that’s considered fraud — and you should take action quickly.
When you open an account with SoFi, you can rest assured your money is in good hands.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
Can I authorize someone else to use my card?
Some banks and credit unions may allow you to add an authorized user or signer to your checking account and debit card. Just remember that, as the account holder, you alone are responsible for the spending that the authorized user does.
Can I allow someone else to use my bank account?
You can allow someone else to use your bank account by making them an authorized user or signer on your debit card. In this case, you are still responsible for the account’s debts, but the other person can spend freely, as well as deposit and transfer funds. For some people, such as couples, it may make sense to have a joint bank account, in which each individual has full privileges and responsibilities toward the account and its funds.
Can an authorized user of my bank account get in trouble?
If you add an authorized user to your debit card, you are responsible for their spending — not the user. For instance, if the user forces your account to overdraft and there’s a fee associated, you have to pay that fee. They will not get in trouble with the bank; you will. One other point: If you give your debit card to someone to use, there is a possibility that they might not be allowed to use it at, say, a shop on the corner you regularly buy from. The staff might choose not to honor the card, fearing it’s been stolen.
Can someone use my debit card with just the number?
A fraudster can use your debit card without having the PIN. In fact, they don’t even need the physical card at all. It’s important to keep your banking information — including your bank account number, bank account password, debit card number, and debit card PIN — confidential and secure. Don’t write the information down, and avoid sharing with people you know.
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