On Bearing Civil Liability Of Fraudulently Using Credit Card

As a convenient and efficient payment tool, credit card has been widely accepted.However, it has caused more and more disputes related to the credit card infringementwhich is caused by the lost cards and stolen cards being fraudulently used by others.The key to solve those problem is to figure out the parties between the credit cardtransaction belong to which kind of legal relationship, and whether card issuer andcontractor should bear the responsibility, and what kind of responsibility should theybear.This paper attempts to clarify the legal relationships between the creditcard transactions subject, find the foundation of right of claim for thecardholder and civil liability of each main body.The main body of this paper consists of preface and four chapters.Preface introduces various opinions on civil liability of false using of credit cards,principle of fault liability of card distributors and outlets, and the necessity ofcodification which prevent risks regarding to fault use of credit cards.Chapter one defines the connotation of credit card and the transactional subjectswhich include card owner，distributor，and outlets by the introduction to thetransactional procedures of POS machine. This chapter also analyzes legal relationsbetween different subjects, including consumption or service relation between ownersand outlets, payment relationship between distributors and outlets, andcompensational relation between owners and distributors which are essential to thispaper.Chapter two carries out a further discussion on the connotation, forms andprocedures of fault use of credit card. This paper concludes that the legal consequenceof fault using is determined by the will and good faith of outlets, owners’ subsequentratification on the basis of comparative studies of both domestic and foreign scholars.Chapter three focuses on the analysis situations, liability principles, and othercontroversies, and asserts that fault user shall bear direct responsibility of fault usingwhich can be allocated by the principle of third party infringement. However, theresponsibility between involving parties shall be allocated according to the agreementof the contracts.Chapter four evaluates and analyses distributors’ infringement on owners and thedeficiency of legislation and judiciary. As a result, it is necessary to introduceConsumer Credit Act which protect owners and prevent the risk of fault using of credit cards.