It has come to my attention that we are currently using a Business Debit Card agreement that specifically places all of the liability for unauthorized transactions on the business customer.
After talking with our card processor, I understand that Mastercard added a "modified" zero-liability clause for business customers in 2006 and we basically have to assume liability for signature based transactions, even though they are not covered by Reg E. I was told the cards cannot be issued with PIN-based capability only (which would avoid the M/C liability rules).
Does anyone have a sample contract that their business cardholders sign addressing their liability? The only one I found on BOL still shows the customer as having unlimited liability and I think we need to incorporate the M/C provisions as well.
Thanks in advance for any help/advice.
_________________________
In the end, it's all just a bunch of paper....