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#1852769 - 09/17/13 01:55 PM Merchant Dispute
VMack Offline
Platinum Poster
Joined: Jun 2001
Posts: 835
Texas
A customer purchased an online software. She claims that she tried to contact the company to cancel the subscription. In our investigation we discovered that there were certain contractual steps she was required to complete in order to cancel the subscription. She did not meet those obligations. Therefore the cancellation did not process. She has now met those requirements and it has been cancelled. However, she is now asking us to reimburse her for the last year since she did try to cancel.
I want to make sure I am not missing anything under VISA rules...we are not obligated to reimburse her since she did not fulfill her contractual obligations to cancel, right?

Thanks so much.
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eBanking / Technology
#1853163 - 09/18/13 04:00 AM Re: Merchant Dispute VMack
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 5,977
Illinois
1. Zero Liability does not apply since the transactions are not the result of a lost/stolen/compromised debit card.
2. Reg E does not apply since the transactions were authorized and the correct amount was debited.
3. Since you have determined that the cardholder failed to comply with the terms of their contract, you do not have chargeback rights for "cancelled recurring."

As you surmise, this issue is between the customer and the merchant. You have no obligation to get involved or provide credit under Reg E or VISA rules.
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#1853188 - 09/18/13 01:11 PM Re: Merchant Dispute VMack
VMack Offline
Platinum Poster
Joined: Jun 2001
Posts: 835
Texas
Thank you so much.
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VMACK
CRCM

“The wise know their limitations; the foolish do not.”
Benjamin Hoff, The Tao of Pooh

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#1853349 - 09/18/13 04:03 PM Re: Merchant Dispute VMack
BetsyS Offline
Gold Star
Joined: Jun 2009
Posts: 468
Out of curiosity, when did she notify you that she wanted the transactions stopped? Was her account debited for transactions after she gave you notice?

There is an obligation under Reg E to permanently stop pre-authorized recurring electronic debits when a consumer gives timely notice.
Last edited by BetsyS; 09/18/13 04:04 PM.
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#1853473 - 09/18/13 06:53 PM Re: Merchant Dispute VMack
VMack Offline
Platinum Poster
Joined: Jun 2001
Posts: 835
Texas
These transactions occurred in July. We were notified last week. The customer has now deactivated her card.
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VMACK
CRCM

“The wise know their limitations; the foolish do not.”
Benjamin Hoff, The Tao of Pooh

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