The content of this article is provided for informational purposes only. You should always obtain your own independent, tax, financial, and legal advice before making any material decision.
Losing a credit or debit card is unfortunate. Whether it’s lost in the house, left at a restaurant, or fell out of a pocket, it’s important to take action in case the card was stolen or found by someone else.
Before cancelling a card, there’s a step that could help: A card lock — or card freeze — which operates as a temporary hold to stop transactions until the card is found.
This article will cover what a card lock is, the reasons for locking a card, and potential benefits of doing so.
A card lock is a feature that blocks a credit or debit card from any new charges for a period of time. If a card is lost or suspected to be compromised, it can potentially be locked before bad actors make fraudulent purchases. A bank may also notice unusual activity and recommend a card lock or a card cancellation to avoid further charges.
Keeping funds safe is major benefit of a card lock. Here are some others:
If a card goes missing, then its information is at risk of being compromised. A card lock can usually be activated by going online, using the credit card app, or calling a service representative. Some possible reasons for needing a card freeze include:
If card information becomes compromised, the card will need to be canceled and a replacement one issued. This process may require reversing fraudulent charges and having to reset all existing recurring payments with new card details.
Different financial institutions may have different processes, but this is generally how to lock a card:
A card freeze buys time and security in the hopes that the card will be recovered safely. If there's an attempt to use the locked card, the card issuer will alert the owner via text or email. Gathering this information could also help track down the location of the card.
If the account has been compromised — for instance, if false charges have already been reported — then the card needs to be closed. But if the card is just missing, a lock may be enough to keep it safe until it's found.
In addition to a card lock, there are other ways to keep finances safe when banking online, such as fraud monitoring and the ability to dispute unauthorized charges.
PayPal security can help with built-in safety measures, even when there's no card lock activated. Features include 24/7 fraud monitoring, end-to-end encryption of all financial data on every transaction, and Purchase Protection on eligible purchases.1 PayPal also makes it safe and easy to send money to anyone around the globe.
Learn about the PayPal app.
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