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#1992474 - 01/30/15 04:33 PM MasterCard Zero Liability
reknab Offline
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Joined: Oct 2008
Posts: 236
not where I want to be
How long do we have to provide a business customer credit once they submit a debit card dispute claiming unauthorized activity?

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eBanking / Technology
#1992479 - 01/30/15 04:40 PM Re: MasterCard Zero Liability [Re: reknab]
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 5,665
Illinois
Since Reg E does not apply, and MasterCard Rules are silent on reimbursement timeframes, this is determined by your contract with the customer.

Since you are contractually obligated to provide Zero Liability coverage, there is nothing to be gained by withholding credit once you have determined that the transaction is unauthorized. Also, if you file a chargeback in order to determine whether or not a charge is unauthorized, MasterCard Rules require that you provide credit to the cardholder once a chargeback is filed.
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#1992492 - 01/30/15 04:57 PM Re: MasterCard Zero Liability [Re: reknab]
reknab Offline
100 Club
Joined: Oct 2008
Posts: 236
not where I want to be
I did not realize that MC rules required us to provide credit to the cardholder once we file the chargeback. Thank you! Customer is negative, and we believe that the purchases were authorized....was hoping we could hold back credit until we got proof from merchant that they were actually authorized. Thanks again.

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#1992524 - 01/30/15 05:53 PM Re: MasterCard Zero Liability [Re: reknab]
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 5,665
Illinois
This is based on Section 1.4 Chargeback Stages of the MasterCard Chargeback Guide.

Under no circumstances should the issuer, acquirer, merchant, or cardholder retain funds, goods, and/or services twice for the same transaction. For example, when an issuer has billed a transaction to its cardholder’s account for payment and then chooses to exercise a chargeback right, the issuer must credit the cardholder’s account for the amount of the chargeback. An issuer must not credit a cardholder twice because of a chargeback processed by the issuer and a refund processed by the merchant.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

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