Can someone please validate my understanding of the timeframes for the extended investigatory period, after provisional credit is issued before the 10th business day.

Domestic ATM transaction must be resolved within 45 days from verbal notice, Foreign ATM transaction can be resolved in 90 days and PIN or Signature POS transactions can also be extended to 90 days. Is this understanding correct?

Thanks for your time.

Sounds like you have it right.

The only thing I want to add is that the 45/90 are Calendar days. Also dont forget that when you get a final credit from your Chargeback or information from the orginator you only have three days to close the claim or give that information to the cardholder. So lets say that even though you have 90 days, if the information comes back on day 42, you only have until day 45 to act.

CAWorkingGirl - I must disagree with you about the 3-day limit.

The 3-day provision only applies to the determination of an error. Issuance of a Chargeback is not a resolution, simply an action to an end. If a merchant response is received (Representment), a time table for the review of the information is not part of Reg. E. In fact, even if it is reviewed, you may not have reached a conclusion yet (you may need the consumer to review the information to assist with the investigation). Once you reach a conclusion only then does the 3-day time clock start ticking.

As far as the Chargeback credit goes, if you perform any Chargeback you must immediately credit the consumer account. Both Visa and MasterCard prohibit you from retaining any credit from a Chargeback that is due to the consumer. The issuance of a credit is not in and of itself resolution so long as the letter you send at that time states as much.

Thank you for pointing that out.

I guess I just always used the tree day time frame to keep me in check and on top of my claims.

I do train REG E claims processing this way based on:

(iv) Reports the results to the consumer within three business days after completing its investigation (including, if applicable, notice that a provisional credit has been made final).

I have always interpeted this to mean, if I do a Chargeback, and it expires on X date, with no representment...I only have 3 days from X date to advise my cardholder. Is this right?

The three day period starts when you make your determination. That may or may not be defined by the expiration of the representment deadline.

John's correct. To deal with a Chargeback that has no Representment, you must set a reminder to yourself to check the account. I'd recommend 42 and 87 days respectively (you don't get an extension if the 45th or 90th day falls on a weekend and waiting until the very last day is risky). If no Representment can be found, then issue a final resolution letter stating your investigation is concluded. You do not need to mention there is no Representment (and in fact you should not since both V/MC technically prohibit you from discussing proprietary information with non-member entities). Just state you've concluded the error as made and the credit issued is now permanent.

Thanks for the replys..looks like our procedures are in complaince, even if we are being conservative with our definition of "determinination of error".

This is timely for me! I am currently auditing the Reg. E claims.

Question: Must the letter of resolution go out at, or prior to 90 days even if the bank does not deny the claim? Can it ever be extended beyond 90 days for POS or VISA check card claim??

Thanks!

Duke

If the error resolution claim is subject to Regulation E (if the claim asserts one or more of the seven types of error defined in section 205.11), the claim investigation must be finalized within the 90 day period. My read of the regulation would allow you to complete your investigation and make your determination on the 90th calendar day and provide the notice within the next three business days. The notice must be written if the claim is denied or is approved for a different amount than claimed.

OK, I think I have it!

Thanks!!