Customer orders product using debit card for payment. Product is not recieved. Is this covered under Reg E?

If the cardholder authorized the charge and was charged the correct amount, Reg E does not define the transaction as an electronic funds transfer error.

That being said, VISA/MasterCard offer chargeback rights in these circumstances. If the Bank is a VISA/MasterCard issuer it has a contractual obligation to assist the customer if all of the VISA/MasterCard requirements regarding merchant contact, dispute notification, etc. are satisfied. However, you are not bound by Reg E investigation timeframes while you attempt to assist the customer.

See MC Chargeback Code 4855 "Goods or Services not Received" or VISA Code 30 - Merchandise not Received.

thank you!

Since this is not considered a Reg E error, is it safe to say that you can require the customer to fill out whatever paperwork may be required for the chargeback? If they refuse then you can deny?

Yes, it is safe to say that.

No Reg E = Jump through all of VISA/MasterCard hoops or "no tickee no washee".

When Reg E does apply, ask the customer to jump through VISA/MasterCard hoops, but perform an investigation even if the customer refuses.

Thanks!