Customer notifies the bank in writing that she is disputing three debit card transactions from a moving company. In her dispute, she stated that all three of the transactions were unauthorized. Her dispute says "An unauthorized withdrawal of $500 was withdrawn 3 times from my checking account." I contacted the moving company and they stated that she hired them to move her and then cancelled her move due to personal problems. They said that in the contract that she signed with them, it states that one of the charges is nonrefundable but the amount could be applied to a future move. The other two charges were charged in error and they mailed her a check refunding her but the check was returned for a bad address. I asked if they could refund her debit card and they said they are having problems with their merchant services so that's why they mailed a check. My question is, if the merchant has stated that they are refunding her for 2 charges in the form of a check, do I have to proceed with the dispute and issue provisional credit? If I can get a copy of the contract that she signed where it states that she understands that one charge is non-refundable and that she signed to do business with this company, do I still have to give her provisional credit for all three transactions or two transactions? Also, do I have to give provisional credit given that she wasn't completely truthful in her dispute summary? My concern is that this customer has moved out of state and I'm afraid that if I give her a provisional credit she'll take the money and run.

The company has already admitted that an error occurred. You cannot deny the entire claim because the customer was not upfront about her dealings with the company. Since the company has not been successful at reimbursing the two charges, ask if they will accept a chargeback from you for "duplicate transactions." Also see if you can get t a copy of the contract or if they are going to make you file a retrieval request for it.
If they still insist on sending her a check, that does not absolve you of your obligation to investigate under Reg E. Based on your version of events its sounds like you can deny the claim for one of the charges and must pay the other two unless you obtain proof that the customer has already been reimbursed.

Happy Birthday, Brian!

Thanks, John! Stay warm and safe out east.