Skip to content
BOL Conferences
Thread Options
#1978759 - 11/24/14 09:12 PM Visa Dispute Issuer Requirment (chargeback)
TruthNTime Offline
Member
TruthNTime
Joined: Dec 2011
Posts: 84
Texas
Hello everyone,

There are multiple reasons a consumer may file a dispute (not related to fraud). One reason is: product or service not provided.

Bear in mind we are dealing with VISA branded debit cards. My question is must a financial institution provide a provisional credit for those non-fraud related disputes IF A CHARGEBACK IS FILED? There is no requirement under Regulation E, and it is not covered under VISA Zero Liability that I am aware of; but not sure about other VISA codes or policies. I am interested in the time frames if credits must be provided in these disputes (5 days like zero liability?)

Thanks to any and all who may share their wisdom!



Last edited by TruthNTime; 11/24/14 10:49 PM.
_________________________
Robert R.
Fraud Specialist
Beaumont, TX

Return to Top
eBanking / Technology
#1978766 - 11/24/14 09:19 PM Re: Visa Dispute Issuer Requirment (chargeback) TruthNTime
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Well only one of your examples is not a Regulation E issue: "product or service not provided".

Both "Double billing, billing after cancellation" would be Reg. E issues and require provisional credit during the investigation.

I'll let Brian address the Visa issue.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1978771 - 11/24/14 09:31 PM Re: Visa Dispute Issuer Requirment (chargeback) TruthNTime
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
See VISA Rule 1.11.1.2

Attempt to Settle
Before initiating a Chargeback, the Issuer must attempt to honor the Transaction. If the attempt fails and the Issuer has already billed the Transaction to the Cardholder, the Issuer must credit the Cardholder for the Chargeback amount. An Issuer must credit its Cardholder's account for the amount in dispute, whether or not a Chargeback was initiated, if the dispute involves an Electronic Commerce Transaction that meets the conditions of
any of the following Chargeback reason codes:
30 (Services not Provided or Merchandise Not Received)
41 (Cancelled Recurring Transaction)
53 (Not as Described)
83 (Fraud – Card-Absent Environment)
85 (Credit Not Processed)
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top
#1978805 - 11/24/14 10:53 PM Re: Visa Dispute Issuer Requirment (chargeback) TruthNTime
TruthNTime Offline
Member
TruthNTime
Joined: Dec 2011
Posts: 84
Texas
Thank you both!
_________________________
Robert R.
Fraud Specialist
Beaumont, TX

Return to Top

Moderator:  Andy_Z