Two questions: First-If I've done a charge-back on a transaction and I learn we don't have any charge-back rights, since there's nothing else to be done on the dispute,when do I need to send the final letter to the customer? Can I wait the 90 days?

Second question - If I get a dispute and I know there are no charge back rights as in the MCC 5542 (gas stations), when do I need to send the customer the final letter assuming I've given them the provisional credit within the 5 business days?

SECTION 205.11 (c) states - The institution shall report the results to the consumer within three business days after completing its investigation.

Are you planning on continuing your investigation? (i.e. contacting the merchant directly to ask for security tapes.) If you have concluded your investigation and lack evidence to deny the claim, there is no reason to leave the claim open 90 days. Note the new CFPB version of Reg E citation is 1005.11(c). Once you know that you investigation is over and you're on the hook for the funds, write off the loss and notify your customer that the provisional credit is final.

I'm not planning on continuing the investigation. The research has shown that these transactions were done with counterfeit cards at gas pumps in several different states. My debit card processor does not allow charge-backs on transactions where the circumstance is fraud at a gas pump. Not sure if that's a regulation. But my real question is, since I know there is nothing left to do on the dispute, is it okay to wait the full 90 days OR do I have to close out the case earlier and if so when?

If you have finished the investigation and determined correctly that the transactions were unauthorized, and since you don't have anything pending with the merchant, you are required to close the file and advise your customer of the finding. It's over, and you have no excuse for keeping the customer in suspense further.

http://www.bankersonline.com/regs/12-1005/12-1005-011.html

This isn't an option, it's required. As you document your file your notes should indicate where you are on the investigation. If you're awaiting some confirmation from someone, denote that so your claim is still open. But if you have all the facts and decisioned the claim, it's done.

If an Error occurred…
- Within one business day correct error
- Within three business days notify customer
- If applicable, provide notice within three business days that provisional credit is final

If an Error did not occur…
- Within 3 to 10 business days provide written explanation of findings
- Debit provisional credit
- Honor checks for five business days