Card locks, explained

What is a card lock?

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.

Potential benefits of locking a card

Keeping funds safe is major benefit of a card lock. Here are some others:

• Avoid unauthorized or fraudulent charges.
• Monitor and control new charges.
• Lock and unlock cards as needed, with potentially no fees or penalties.
• Lock a card to prevent impulse purchases.
• Protect a card that is seldom used.

What are the reasons for locking a card?

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:

• The card was dropped or lost in public.
• To curb or limit spending.
• The card has been misplaced.

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.

How freezing a card works

Different financial institutions may have different processes, but this is generally how to lock a card:

• The customer contacts the card issuer via phone, mobile app, or internet requesting a card lock.
• The card issuer freezes any new purchase authorizations.
• Recurring payments are preserved so none will be missed.
• No new transactions can be made until the card lock is lifted.

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 helps keep transactions safe

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.