I'm doing a Reg E audit and noticed we have been taking longer than 10 days to complete the investigation and provisional credit is not always given. From my understanding, if we have unauthorized debit card transactions we must give provisional credit after 5 days (following VISA rules) and the investigation must be complete by the end of 45 days. We use Shazam and I was told that they can take up to a few months to complete the investigation. Is anyone else encountering this problem? Aren't we required to give provisional credit or complete the investigation within 10 days? If we give provisional credit, aren't we required to make it permanent after 45 days?

Your bank may take up to 90 days to complete investigation when an error involves a POS debit card transaction.

Yes, unless the transaction falls within the 20/90 day exception. The bank collecting on the unauthorized item and the customer being made whole are two different issues.

So if is a debit card issue other than POS and our cards have the VISA logo, we are required to give provisional credit after 5 days and make it final after 45 days whether or not we receive credit. Is that correct?

We've had customers claim website transactions were unauthorized and it's taken us over 10 days to give complete the investigation and provisional credit wasn't given. When I discussed it with Operations I was told it was because Shazam takes a long time to complete the investigation. I believe it doesn't matter how long Shazam takes, we are requried to give provisional credit within either 5 or 10 days depending on the type of transaction if we aren't able to complete the investigation within 10 days. Is that generally correct?

Visa requires provisional credit within 5 days. Reg E requires provisional credit within 10 days. If a Reg E error occurs with a Visa debit card, you must follow Visa's rules.

You are correct, you cannot delay the customer receiving provisional/final credit just because the bank is left waiting.

"Visa requires provisional credit within 5 days."

But Visa differentiates a PIN'ed transactions (Reg E rules) from a signature (Visa rules) transactions, yes? Or is that just zero liability?

Visa's Zero Liability or 5 day Providional Credit provision does not apply to any ATM transactions or PIN based transactions not processed through Visa (Interlink). Visa rules do allow you to withhold the PC due to Gross Negligence, delay in reporting, written notification, etc, but would just revert to Reg E and 10 day investigation/PC timeframes.

I just saw this post and have teh same situation. We use Fiserv EFT. We give teh client provisional credit within the 10 days. Fiserv sometimes takes up to a couple of months to give us all the credit back. So if we close the investigation and we are notified after the 45 day that we are nto getting some money back, the bank is out that money? Do I understand this correctly that internation transactions are 90 days as well.

Whether or not the bank gets the money back does not come into play for Reg E. In the majority of cases the bank loses the money. Regulation E protects the consumer, not the bank. This is my LEAST favorite regulation.

I suggest you review section 205.11(c) of the regulation. It provides the details on the time limits for your investigation.

Ignoring Visa's rules for the moment, here's a summary:

• Provisional credit within 10 business days if investigation cannot be completed within 10 business days.
• Extend that 10-day period to 20 business days for new accounts (use Reg CC new accounts definition).
• If the investigation can't be completed within the 10/20-day period and you have complied with the provisional credit rule (with exceptions), you have 45 calendar days to complete your investigation for EFTs originating within a state (as defined in the regulation).
• Investigations can be extended to 90 calendar days if the EFTs originated outside U.S. territory. This includes all covered EFT types.
• The investigation can also be extended to 90 calendar days if it involves a POS debit card transaction (signature or PIN-based) originating anywhere.

AHK, you have an agreement and obligation with your consumer. That is ruled by Reg E. You can do more for the consumer, but not less.

Processing time and collection from retailers and merchants is a separate agreement you have via NACHA or rules imposed by Visa or MasterCard, as examples. Those have nothing to do with the first agreement you have with your consumer. It is unfortunate that they do not dovetail with one another, but those rules often favor the merchant. Reg E favors the consumer. The bank lives in the valley between the two.