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#1580628 - 07/20/11 08:00 PM Stop payments on ATM, POS, or Debit Card Transacts
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
Since we are re-installing DepositPro from scratch, I've had to go over some of the parameters for our disclosures with a fine-tooth comb. I've come across one for which I could use some feedback.

There is a parameter to add 'access device stop payment language' to the Reg E disclosure. It indicates that if we check this box, the following language would be added:
"Stop Payments on ATM, POS, or Debit Card Transactions. You may not place a stop payment order on any ATM, POS, or debit card transaction."

Currently we do not have that box checked and that language is not included in our Reg E disclosure. Should it be? Or is this just an added 'coverage'?
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#1580657 - 07/20/11 08:26 PM Re: Stop payments on ATM, POS, or Debit Card Transacts Doug Hendrickson
Jafo Offline
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Jafo
Joined: Apr 2008
Posts: 328
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I believe that is just added 'coverage' as I do not recall anything in Reg E that says to disclose that. If it does looks like we need to change some things too. wink
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#1580663 - 07/20/11 08:32 PM Re: Stop payments on ATM, POS, or Debit Card Transacts Jafo
Jafo Offline
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Jafo
Joined: Apr 2008
Posts: 328
State of Confusion
A follow up. Looking at the commentary for section 205.10 in section 3 it talks about debit cards, but I believe the intent with this is when someone pays their gym membership using their debit card, for a recurring monthly debit. Perhaps that is what your system is trying to cover with that language?

10(c) Consumer's Right To Stop Payment

1. Stop-payment order. The financial institution must honor an oral stop-payment order made at least three business days before a scheduled debit. If the debit item is resubmitted, the institution must continue to honor the stop-payment order (for example, by suspending all subsequent payments to the payee-originator until the consumer notifies the institution that payments should resume).

3. Alternative procedure for processing a stop-payment request. If an institution does not have the capability to block a preauthorized debit from being posted to the consumer's account as in the case of a preauthorized debit made through a debit card network or other system, for example the institution may instead comply with the stop-payment requirements by using a third party to block the transfer(s), as long as the consumer's account is not debited for the payment.
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A common mistake people make designing something completely foolproof is to underestimate the ingenuity of complete fools.

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#1580670 - 07/20/11 08:38 PM Re: Stop payments on ATM, POS, or Debit Card Transacts Jafo
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
DH - I would utilize that verbiage for ATM and POS transactions since once it's authorized, you will pay (unless identified as fraudulent), but it doesn't seem accurate to reference all debit card transactions since some could be recurring.
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