---
kind: "section"
citation: "15 U.S.C. § 1643"
title: "15"
title_heading: "Commerce and Trade"
number: "1643"
heading: "Liability of holder of credit card"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1643"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part B — Credit Transactions"
---

# §1643. Liability of holder of credit card

- (a) **Limits on liability—**
  - (1) A [cardholder](/usc/15/1602.md?p=n) shall be liable for the [unauthorized use](/usc/15/1602.md?p=p) of a [credit card](/usc/15/1602.md?p=l) only if—
    - (A) the card is an [accepted credit card](/usc/15/1602.md?p=m);
    - (B) the liability is not in excess of $50;
    - (C) the [card issuer](/usc/15/1602.md?p=o) gives [adequate notice](/usc/15/1602.md?p=k) to the [cardholder](/usc/15/1602.md?p=n) of the potential liability;
    - (D) the [card issuer](/usc/15/1602.md?p=o) has provided the [cardholder](/usc/15/1602.md?p=n) with a description of a means by which the [card issuer](/usc/15/1602.md?p=o) may be notified of loss or theft of the card, which description may be provided on the face or reverse side of the statement required by [section 1637(b) of this title](/usc/15/1637.md?p=b) or on a separate notice accompanying such statement;
    - (E) the [unauthorized use](/usc/15/1602.md?p=p) occurs before the [card issuer](/usc/15/1602.md?p=o) has been notified that an [unauthorized use](/usc/15/1602.md?p=p) of the [credit card](/usc/15/1602.md?p=l) has occurred or may occur as the result of loss, theft, or otherwise; and
    - (F) the [card issuer](/usc/15/1602.md?p=o) has provided a method whereby the user of such card can be identified as the [person](/usc/15/1602.md?p=e) authorized to use it.
  - (2) For purposes of this section, a [card issuer](/usc/15/1602.md?p=o) has been notified when such steps as may be reasonably required in the ordinary course of business to provide the [card issuer](/usc/15/1602.md?p=o) with the pertinent information have been taken, whether or not any particular officer, employee, or agent of the [card issuer](/usc/15/1602.md?p=o) does in fact receive such information.
- (b) **Burden of proof—** In any action by a [card issuer](/usc/15/1602.md?p=o) to enforce liability for the use of a [credit card](/usc/15/1602.md?p=l), the burden of proof is upon the [card issuer](/usc/15/1602.md?p=o) to show that the use was authorized or, if the use was unauthorized, then the burden of proof is upon the [card issuer](/usc/15/1602.md?p=o) to show that the conditions of liability for the [unauthorized use](/usc/15/1602.md?p=p) of a [credit card](/usc/15/1602.md?p=l), as set forth in [subsection (a)](#a), have been met.
- (c) **Liability imposed by other laws or by agreement with issuer—** Nothing in this section imposes liability upon a [cardholder](/usc/15/1602.md?p=n) for the [unauthorized use](/usc/15/1602.md?p=p) of a [credit card](/usc/15/1602.md?p=l) in excess of his liability for such use under other applicable law or under any [agreement](/usc/15/7a.md?p=2) with the [card issuer](/usc/15/1602.md?p=o).
- (d) **Exclusiveness of liability—** Except as provided in this section, a [cardholder](/usc/15/1602.md?p=n) incurs no liability from the [unauthorized use](/usc/15/1602.md?p=p) of a [credit card](/usc/15/1602.md?p=l).

## Source credit

(Pub. L. 90–321, title I, § 133, as added Pub. L. 91–508, title V, § 502(a), Oct. 26, 1970, 84 Stat. 1126; amended Pub. L. 96–221, title VI, § 617, Mar. 31, 1980, 94 Stat. 182.)

## Notes

### Editorial Notes

### Amendments

1980—Subsec. (a). Pub. L. 96–221 revised existing provisions into pars. (1) and (2) and, as so revised, in par. (1) made changes in structure and phraseology and revised means of notice and verification, and in par. (2) made changes in phraseology.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1980 Amendment

Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and allowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.

### Effective Date

Pub. L. 91–508, title V, § 503(2), Oct. 26, 1970, 84 Stat. 1127, provided that: “Section 133 of such Act [this section] takes effect upon the expiration of 90 days after such date of enactment [Oct. 26, 1970].”