Reg E determines consumer liability limits ($50, $500, Unlimited) based on notification time frames (2 days and 60 days). Ok, I got that (I think).

If only we could keep it simple and stop there, but no... then there is CA state law and also the MasterCard rules, too!

OK, I think I understand the CA state law too.

My question boils down to the MasterCard rules - am I missing it or is there no requirement to report in a timely manner that might affect the customers liability beyond the $0 or $50 limit?

Is $50 the absolute maximum consumer liability for a MasterMoney debit card claim, regardless of when the consumer reports?

Here is how I understand the MasterCard debit card transactions processed by MasterCard (incl. Maestro, Cirrus and other networks).
1. Customer must report the unauthorized use. (No time limit stated.)
2. Customer exercised reasonable care safeguarding the card from risk of loss or theft.
3. There have not been 2 or more incidents of unauthorized use in the last 12-month period.
4. The account is in good standing.
5. These rules do not apply to an entity other than a natural person, used for business, commercial or ag purpose or outside the U.S. region.

If conditions 2-4 are not met liability will not exceed $50 on any MasterCard branded card.

Just so I am clear, if 2-4 ARE met then the customer has $0 liability.

What about the rules for holding the merchant liable? We keep getting stuck with claims because the merchant has a sales slip with a "signature" but there does not appear to be any requirement that the signautre be that of the card holder.

Also, what about the situation where someone scans our customer's card, encodes another bank's card with the info and then uses the debit card. The card on its face has another bank's name but the sales slip (or debit slip, whatever it is called) printes out with our bank's name and the merchant doesn't even look (or care.)

Is there a good source our course to get on top of these debit card rules, I feel lost most of the time.