Visa Logo on Debit Cards Equals Zero Liability?
Answer by David Dickinson & Andy Zavoina, BOL Gurus Guru Bios
Question: Our debit cards have the Visa logo. On the Visa website they advertise zero liability. Does this mean our customers are excluded from the $50.00 and $500.00 liability?
Answer from David: Yes, if certain conditions are met. You must comply with Visa's liability requirements if you are going to include their logo on your debit cards. Contact your service provider for more information.
Answer from Andy: The key in David's answer is if certain conditions are met. You should be familiar with these as they include a gross negligence exception, or if the consumer was involved in fraud. Reduced customer liability does not apply to ATM transactions, transactions using a PIN, not processed by VISA and possibly commercial cards. You should verify these exceptions and stipulations, however.
You also need to be aware that your Reg E liability disclosure should accurately denote that zero liability can apply. If you state a minimum $50 liability, you are not accurately disclosing the contract terms to your consumer. Also, there are five business days to complete the investigation unless provisional credit is given. Reg. E allows ten business days.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
