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#1327995 - 01/21/10 03:58 PM Business Debit Card Holders
Carly Girl Offline
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Can someone please clarify for me that Reg E does not apply to a business account and why? I know there has to be an explanation....I just don't know what it is. I have done a search and didn't find the answer I was looking for so if someone could help me out here, it would be much appreciated!
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#1328124 - 01/21/10 05:23 PM Re: Business Debit Card Holders Carly Girl
Georgia Plum
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Regulation E

Sec. 205.3 Coverage.

(a) General. This part applies to any electronic fund transfer that authorizes a financial institution to debit or credit a consumerís account. Generally, this part applies to financial institutions.

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#1328496 - 01/21/10 09:51 PM Re: Business Debit Card Holders
Carly Girl Offline
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Can someone be more specific please?
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#1328566 - 01/21/10 10:43 PM Re: Business Debit Card Holders Carly Girl
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Coverage tells you the reg applies to consumers. The definitions in Reg E define consumer:

(e) Consumer means a natural person.
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#1329128 - 01/22/10 06:48 PM Re: Business Debit Card Holders Kathleen O. Blanchard
Carly Girl Offline
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I guess what I am asking is if there is any reason as to why a business account is not covered other than the fact that Reg E states so.

If a business customer files a dispute because their card # has been compromised, charges appear on their statement are clearly overseas transactions, the business customer just loses the money because they have no rights at all to get their money back? Then why would they want to have a card in the fist place if their card is not covered? This is what confuses me.

Anyone?
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#1329180 - 01/22/10 07:12 PM Re: Business Debit Card Holders Carly Girl
Elwood P. Dowd Offline
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It's no different than other consumer protection laws, it only protects consumers. The law generally assumes that a business doesn't need any protection; i.e. it's on an equal status with the bank.

The fact that Reg E does not apply does not mean banks do not work with their business customers to resolve EFT problems, it simply means that they do not have to follow the regulation's time frames and moronic liability standards when they do so. I've never looked at them, but assume that the contract with the card issuer affords businesses some protection.
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#1329483 - 01/22/10 09:44 PM Re: Business Debit Card Holders Elwood P. Dowd
BrianC Online
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Assuming that your card is MasterCard or VISA branded, chances are that their Zero Liability Protection applies.

MasterCard Business Debit Cards

VISA Business Debit Cards

Hope this helps clarify for you.
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