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#1848589 - 09/04/13 04:01 PM Reg E vs Visa....AARRGGHH!
bankinginky Offline
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Joined: Sep 2010
Posts: 18
We classify our card disputes by catagory..Reg E disputes and Visa disputes. Most are very easy to classify...customer ordered boots, returned them but never got her money back...Visa dispute. Counterfeit card being used up and down the west coast...Reg E. Occassionally, however, we get one that is a little bit trickier to classify and if you ask 10 different people their opinions on the matter, they will be split 50/50. Thought I'd come to the authority for assistance!! smile

Customer calls a company and gives them her debit card number and authorizes a debit to her account. Customer claims that while she was on the phone with the company she was asked if she would like to establish recurring payments. She states she told the company no, but later discovers they are automatically debiting her via her Visa card. Would this qualify as a Reg E dispute because she states she did not authorize it, or a Visa dispute because she did, in fact, conduct business with this company and gave them her card number? My gut tells me it would be a Reg E dispute, but I attended a webinar some time ago that I would almost swear said just the opposite.

Now, please let me make it VERY clear that we handle all of these disputes according to our obligations under Reg E and/or our Visa agreement, so I am not asking because the answer would in any way impact our handling of the dispute. It is really more in determining how we classify it to satisfy our own internal procedures. Thanks!!

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#1848627 - 09/04/13 04:55 PM Re: Reg E vs Visa....AARRGGHH! bankinginky
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,570
Galveston, TX
It's a claim that the additional charges were not authorized, which falls under Reg. E, based on your explanation of how you categorize them.
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#1848656 - 09/04/13 05:36 PM Re: Reg E vs Visa....AARRGGHH! bankinginky
bankinginky Offline
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Joined: Sep 2010
Posts: 18
Love it when my gut feelings are right! Thank you!!

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#1848674 - 09/04/13 05:50 PM Re: Reg E vs Visa....AARRGGHH! bankinginky
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,074
Illinois
I hope it wasn't one of my webinars that said that. I do agree with Randy, it is a Reg E claim. When a cardholder authorizes a merchant to charge a card once, it does not give them carte blanche to continue to charge the card.

Speaking of webinars, I am presenting one on this very topic on September 25th. Reg E vs. VISA: Debit Card Dispute Resolution
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#1848786 - 09/04/13 08:17 PM Re: Reg E vs Visa....AARRGGHH! bankinginky
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
I am confused. I thought if the transaction involved a VISA debit card the customers liability is zero because VISA's zero liability rule trumps Reg E.

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#1848798 - 09/04/13 08:28 PM Re: Reg E vs Visa....AARRGGHH! bankinginky
bankinginky Offline
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Joined: Sep 2010
Posts: 18
Like I said, we don't use this classification to assign any more liability to the customer than he/she would be under either Visa or Reg E rules...it is simply related to an internal procedure. In the scenario that I described we would not impose any liability on our customer, regardless of how we classify the dispute.

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#1848811 - 09/04/13 08:43 PM Re: Reg E vs Visa....AARRGGHH! bankinginky
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
Thanks bankinginky for clarifying for me.

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