We have a business debit card customer that has claimed fraud, the merchant has represented the bank with a receipt where the merchandise was mailed to an address in Indiana. Clearly the customer did not make this purchase, but Visa is requiring a letter from him stating such. We have 5 business days to submit the letter or we will not have additional chargeback rights.

Since Business debit cards do not fall under Reg E can we debit the provisional credit given a customer if he/she fails to assist us in the chargeback process?

Thank you.

Since your investigation has determined that the transaction is indeed fraudulent, VISA's Zero Liability coverage would protect the cardholder and prevent the bank from reversing provisional credit.

Thank you Brian.