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January 6, 2015
Business Accounts Documentation and Procedures with Beneficial Ownership
Deborah Crawford

January 6, 2015
FFIEC Cybersecurity Initiatives and Observations from the 2014 Assessments
Susan Orr

January 15, 2015
The ABC's of IRAs - The Basic Ingredients
Patrice Konarik

January 20, 2015
B & Z Appraisal Rules - Getting Them Right
Jack Holzknecht

January 21, 2015
HMDA Soup to Nuts
David Dickinson

January 22, 2015
Navigating the Treacherous Waters of IRA Rollovers, Transfers and Beneficiary Payouts
Patrice Konarik

January 28, 2015
Mortgage Life Cycle
Part I
David Dickinson and Jerod Moyer



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#1806486 - 04/19/13 12:20 PM VISA Merchant Disputes
deh Offline
Platinum Poster

Registered: 03/10/06
Posts: 791
What are our obligations when we have an authorized ATM transaction that is now being disputed by the consumer with the merchant.

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Deposits and Payments
#1806511 - 04/19/13 12:48 PM Re: VISA Merchant Disputes [Re: deh]
BrianC Online
Power Poster

Registered: 11/26/04
Posts: 2941
Loc: Illinois
ATM transactions really aren't open to dispute, they either got the money from the machine or they didn't.

If the dispute involves a point of sale (POS) transaction, then VISA does place some obligation on the issuer to assist the cardholder. If we're talking about merchandise not received, defective merchadise, services not performed, etc. then the customer does not have Reg E coverage. This means that you are permitted to require that the customer first try and resolve the dispute with the merchant. However, if this is not successful, and the customer's sitation is covered by a valid chargeback reason, you are contractually obligated to assist.

When you file a chargeback on the cardholder's behalf, you must provisionally credit their account at that time. Since Reg E does not apply, there are no investigation timeframe limitations. You can work through the chargeback/arbitration process for as long as is needed to resolve the dispute and can revoke the credit in the event VISA sides with the merchant.
_________________________
I can do all things through Him who gives me strength. (Phillipians 4:13)

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#1806519 - 04/19/13 01:00 PM Re: VISA Merchant Disputes [Re: deh]
deh Offline
Platinum Poster

Registered: 03/10/06
Posts: 791
Sorry. I did say ATM but I meant debit card transaction. I don't know what kind of transaction it was but most of these are WEB transactions.

I tried looking in the VISA International Operations guidelines but couldn't find what I needed.

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#1806522 - 04/19/13 01:03 PM Re: VISA Merchant Disputes [Re: deh]
BrianC Online
Power Poster

Registered: 11/26/04
Posts: 2941
Loc: Illinois
WEB is a standard entry class(SEC) code for an ACH transaction initiated via the internet and is unrelated to debit cards.

Perhaps if you can provide more specifics about the nature of the customer's claim we can be of more help.
_________________________
I can do all things through Him who gives me strength. (Phillipians 4:13)

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#1807704 - 04/24/13 01:37 PM Re: VISA Merchant Disputes [Re: deh]
Soccer Offline
Gold Star

Registered: 01/05/10
Posts: 482
Loc: Utopia
I have a POS that was disputed, customer pumped 40.00 in gas did not obtain a receipt and was charged 84.49. Visa rejected the claim based on it does not qualify for a no signature or an unauthorized chargeback. The merchant received an approval and the card was present. We revoked the 44.49 and sent notice, now we're wondering if that was correct, any thoughts?

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#1807740 - 04/24/13 02:36 PM Re: VISA Merchant Disputes [Re: deh]
BrianC Online
Power Poster

Registered: 11/26/04
Posts: 2941
Loc: Illinois
This dispute raises a few questions.

1. Was this a pay at the pump or was the card swiped inside? (VISA limits pay at the pump transactions to $75.00 which means the customer could have pre-paid for $40.00 of gas inside and bought other items on the same purchase.)

2. Filing a chargeback for an unauthorized transaction would not be the correct procedure in this case. (Begninning April 20th, 2013 VISA stopped accepting fraud based chargebacks for card present transactions.) The proper procedure would have been to file chargeback code 80 "Incorrect transaction amount" for the amount of the dispute ($44.49). This would have compelled the merchant to produce their copy of the sales receipt which you could then use to jog the customer's memory about what else they purchased that day.

Since you have already filed an incorrect chargeback, you cannot file another so your only remaining recourse is to file a retrevial request and ask for a copy of the sales receipt.

You cannot deny a Reg E claim solely on your ability or lack thereof to utilize the VISA chargeback process. Reg E still requires that you investigate the claim and be able to produce the documentation that you used to deny the claim.
_________________________
I can do all things through Him who gives me strength. (Phillipians 4:13)

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#1807757 - 04/24/13 02:57 PM Re: VISA Merchant Disputes [Re: deh]
Soccer Offline
Gold Star

Registered: 01/05/10
Posts: 482
Loc: Utopia
Thanks for the quick response. I think I need to give you additional information.

Our system only gives us the following options when we have a Reg E claim: Dispute or Chargeback to credit cardholder. We submitted this as a dispute and part of the investigation included obtaining a copy of the sales reciept which shows the card was swiped at an "automated fuel dispenser" and no signature required for the full amount, $84.49.

We aren't looking to reopen the claim. Based on the information we recieved, we aren't sure we should have revoked provisional credit based on the copy of the sales reciept.

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#1807814 - 04/24/13 04:05 PM Re: VISA Merchant Disputes [Re: deh]
BrianC Online
Power Poster

Registered: 11/26/04
Posts: 2941
Loc: Illinois
Since the cardholder does not have a receipt to prove their claim, obtaining a copy of the receipt that proves $84.49 is sufficient evidence to revoke the claim IMHO.

Based on the description of your system, I'm guessing that based on the information that you provided, your processor looks at the claim and determines the best chargeback code to utilize rather than leaving it to you to select.
_________________________
I can do all things through Him who gives me strength. (Phillipians 4:13)

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