For unauthorized card transactions, freeze the card and report the incident before arguing about reimbursement
Under the Chinese rules discussed here, a bank claiming that you made or authorized a disputed payment must provide evidence for that claim. You should also gather evidence supporting your report of fraud. Act immediately: if you delay reporting the card and losses continue, you may have to bear the additional loss yourself.
What it takes
Free to report. As soon as you notice suspicious activity, report the card lost or freeze it. Keep police records, your loss report and transaction alerts. If the physical card is still with you, a nearby balance inquiry or small deposit or withdrawal can help document where the genuine card was at the time. Resist the temptation to argue with customer service before securing the account.
What you may gain
China’s Supreme People’s Court separates the parties’ evidentiary responsibilities. A cardholder alleging counterfeit-card or online card fraud must first provide supporting evidence. Counterfeit-card fraud means someone has copied the card and used the copy. Useful evidence includes effective legal documents, the location of the genuine card and of the disputed transaction, account statements, transaction alerts, police records and loss reports. If the issuing bank or a non-bank payment provider claims that the cardholder made or authorized the transaction, that institution must prove it. If the bank fails to investigate promptly after notification, or fails to provide or preserve transaction records and surveillance footage, it bears the evidentiary consequences of that failure. Once unauthorized use is established, a debit-card holder can seek repayment of the stolen deposit and interest, plus compensation for losses. A credit-card holder can seek repayment of deducted overdraft principal, interest and penalty charges, plus compensation; a bank’s claim that the holder must repay that fraudulent overdraft is not supported by the court. The holder can also request timely removal of the resulting adverse credit record. These rules apply in mainland China and took effect on May 25, 2021.
Context & considerations
You can bear responsibility in two situations. First, if you negligently failed to safeguard the card, password or verification codes, liability is apportioned according to your fault. Never share passwords or forward verification codes; see two-step verification. Second, you bear additional losses caused by failing to report the card promptly. Freeze or report it first; discuss reimbursement afterward. These rules also cover third-party payment providers. A clear, specific promise of advance compensation in their promotional materials can support a claim for that payment. If a scammer persuaded you to send the money yourself, a different process applies: see reporting a scam and requesting a payment stop, including China’s 110 or 96110 numbers.
Research & references
Supreme People’s Court of China (2021). Provisions on Several Issues Concerning the Trial of Civil Disputes Involving Bank Cards, Articles 4, 5, 7, 14 and 15. https://www.court.gov.cn/fabu/xiangqing/304771.html