We recently provided a customer provisional credit for a POS transaction. Then at the 45 day mark provided the customer with a full credit due to not hearing from VISA as disputing the transaction. Since that time VISA has determined they will not honor the dispute. Can the credit given to the customer be taken back without violating Reg E rules?

Whether VISA honors a dispute is irrelevant to the customer receiving credit for the transaction. It either was or wasn't an unauthorized transaction under Reg. E. Whether the bank can re-claim the funds is a whole other issue.

Also, if you have finalized provisional credit and then later learned that no error occurred, it is a Reg E violation to revoke the credit at that time. Final means just that, final. However, I am curious that the investigation was closed at the 45 day mark. Reg E Section 1005.11(c)(3)(ii)(B) permits you to extend your investigation for up to 90 days if the transaction involves a point of sale transaction.

We had a customer dispute an Visa debit card withdrawal at an ATM. We have given the customer provisional credit and we are having the police department research this. The investigation has reached the 45 day mark, and therefore we need to close the investigation, but we still haven't heard back from the police department. If we find out after the 45 day time frame that the withdrawal was conducted by our customer (which we are assuming to be very likely), can we debit the provisionally credited amount?

No. You must wrap things up within 45 days for an ATM transaction within the U.S., and either revoke the provisional credit because you've determined that the customer made the withdrawal or make the provisional credit final. And "final" means final.

If it turns out that your customer actually made the withdrawal and you determine that your customer fraudulently made the claim that unjustly enriched him, you can theoretically file a fraud complaint. I say "theoretically" because it may not be cost-justified to do so. But kicking the dishonest customer to the curb would certainly be something that would meet the tightest budget constraints.

Thanks for the help, much appreciated!