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#1707835 - 06/07/12 09:18 AM PROVISIONAL CREDIT FOR VISA DEBIT FRAUD
michigan mom Offline
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Registered: 05/04/09
Posts: 7
Having a mind block for Visa compliance: How long can we wait to give back the funds customers have lost with debit card fraud. Today we are not giving provisional credit for up to and beyond 10 days.

Thanks

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#1707846 - 06/07/12 09:25 AM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
rlcarey Offline
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Registered: 07/16/01
Posts: 49766
Loc: Galveston, TX
Both VISA and Mastercard give you 5 business days which is less than the 10 business days allowed under Regulation E.
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#1708401 - 06/08/12 11:17 AM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
MidwestCFE Online
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Registered: 01/21/03
Posts: 463
Loc: wish it was the Smoky Mountain...
5 ??? I don't think I knew that...uh oh....
is that in dog years ??? ughhhh
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#1708460 - 06/08/12 12:11 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
Bobby Boucher Online
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Registered: 08/31/06
Posts: 6575
Loc: Down Yonder
5 days is correct for Visa's zero liability - this applies for any POS signature transactions routed through Visa. 10 days under Reg E would still apply for PIN transactions routed through a network other than Visa. I believe PIN transactions routed through Visa would be limited to 5 days as well.

To keep it simple, we just aim for 5 days on all. Most of our fraud is signature based anyway. We might extend up to 10 on an ATM dispute if we're trying to get film.


Edited by Bobby Boucher (06/08/12 04:35 PM)
Edit Reason: You know what happens when you assume...
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#1708663 - 06/08/12 04:08 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
MidwestCFE Online
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Registered: 01/21/03
Posts: 463
Loc: wish it was the Smoky Mountain...
I'm confused. I attended the BOL webinar on debit card claims 06/15/11, and am looking right at my docs. It states that "Visa" only reduced it to 5 days.
Did something change ?
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#1708690 - 06/08/12 04:33 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
Bobby Boucher Online
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Registered: 08/31/06
Posts: 6575
Loc: Down Yonder
Ya know, I thought MC's policy provided the same as Visa, but not being completely sure I really shouldn't have included that. Will remove the MC references from my post.
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...not only will I do it for you, I... I... I... yes, yes, I'll do it for you.

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#1708702 - 06/08/12 04:46 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
BrianC Online
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Registered: 11/26/04
Posts: 2794
Loc: Illinois
Since I gave the aforementioned webinar on 6/15/11, I had best chime in here.

VISA's website/operating rules are very clear about the 5 day requirement:

Count on quick resolution and provisional credit if your card is lost or stolen. If your account is compromised, Visa is committed to setting things right without further aggravation or inconvenience to you. Visa’s cardholder protection policy requires all financial institutions issuing Visa products to extend provisional credit for losses from unauthorized card use within 5 business days of notification of the loss.

MasterCard is mute on the issue of provisional credit. Consequently I also maintain that you are fine observing the Reg E requirement of 10 business days if you are a MasterCard issuer.
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#1710475 - 06/14/12 01:32 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
MidwestCFE Online
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Registered: 01/21/03
Posts: 463
Loc: wish it was the Smoky Mountain...
Thank you Brian C-we were almost to arm wresting over it here...:)
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#1922439 - 05/12/14 11:02 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: BrianC]
Anonymous
Unregistered


Brian, Any update available on the VISA provisional credit rule? Chase Bank is telling me they aren't going to issue provisional credit at all until the case is closed 45-90 days. Unauthorized use, approx 13K fraud claim. They are telling me since it's a business account and less than 180 days old, they need to protect themselves. Can they legally do this, my business credit worthiness and credibility with my creditors will be ruined.

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#1923515 - 05/15/14 02:20 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
happyauditor Online
Gold Star

Registered: 11/24/04
Posts: 382
Loc: NY
Brian, do you have information on what consequences the financial instituion (issuer) could face if not following the 5 day zero liability rules?

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#1923524 - 05/15/14 02:31 PM Re: PROVISIONAL CREDIT FOR VISA DEBIT FRAUD [Re: michigan mom]
BrianC Online
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Registered: 11/26/04
Posts: 2794
Loc: Illinois
Anon, I cannot speak to the practices of a specific institution as I do not know the terms under which your card was issued. Your best course of action would be to have an attorney review your cardholder agreement to see if Chase has violated it in anyway as this would be a matter of contract law.

Happyauditor, VISA discloses non-disclosure fines on page 68 of the October 15 , 2013 edition of VISA International Operating Regulations
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I can do all things through Him who gives me strength. (Phillipians 4:13)

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