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#2007371 - 04/10/15 03:47 PM Customer's Disputed Debit Card Charge
leo_bsayer Offline
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Joined: Aug 2006
Posts: 645
A customer contacted us stating that he had wanted to add airtime to his wife's cell phone. His account was charged but no airtime was added to the phone. The phone company said that the number our customer was adding air time to was invalid due to the phone being unused for a period of time, and the amount had been credited to someone else who was now using that phone number.

The company said that they couldn't reverse the charge and told the customer that he should file a fraud dispute through the bank for that transaction. The customer added more airtime to another phone , which worked, at the same time. The customer has two $60 dollar charges and is disputing one as fraud. Does the regulation require us to simply reimburse the customer for one of the $60 charges?

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#2007401 - 04/10/15 04:21 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
There is no fraud and the charge was authorized. Unless this falls under a zero liability claim covered by the card rules, the customer's dispute is with the phone company. Period.
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#2007412 - 04/10/15 04:32 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
leo_bsayer Offline
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Posts: 645
Thanks RL. This is a Visa debit card, so would we be required to refund the entire amount due to that fact?

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#2007416 - 04/10/15 04:37 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
rlcarey Online
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rlcarey
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Galveston, TX
Ask Brian smile He knows the VISA zero liability rules better than me. But I doubt it, there is no fraud. The customer paid for something that they 1) didn't understand or 2) the company failed to properly deliver. Now, if he paid with a credit card, he might have some recourse.
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#2007471 - 04/10/15 06:07 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
Derwood Offline
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It wouldn't fall under the zero liability rule because it wasn't unauthorized, but you should be able to file a Chargeback Reason Code 30 - Services Not Provided or Merchandise Not Received. Note that if this was an electronic commerce transaction Visa Operating Regulations say the following:

1.11.1.2 Attempt to Settle
Before initiating a Chargeback, the Issuer must attempt to honor the Transaction.
If the attempt fails and the Issuer has already billed the Transaction to the Cardholder, the Issuer must
credit the Cardholder for the Chargeback amount.
An Issuer must credit its Cardholder's account for the amount in dispute, whether or not a Chargeback
was initiated, if the dispute involves an Electronic Commerce Transaction that meets the conditions of
any of the following Chargeback reason codes:
● 30 (Services not Provided or Merchandise Not Received)
● 41 (Cancelled Recurring Transaction)
● 53 (Not as Described)
● 83 (Fraud – Card-Absent Environment)
● 85 (Credit Not Processed)
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#2007491 - 04/10/15 06:37 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,685
Illinois
Derwood is spot on. Since Reg E does not apply to this claim, you can make the cardholder jump through VISA's hoops regarding putting their claim in writing, first attempting to resolve with the merchant, etc, prior to attempting the chargeback.
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#2007508 - 04/10/15 07:15 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
leo_bsayer Offline
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Posts: 645
They did try to resolve with the merchant first, but the merchant told the customer to contact the bank. We do have the claim in writing. Apparently Visa charges a $15 dollar fee to simply submit the chargeback.

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#2007512 - 04/10/15 07:27 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,685
Illinois
Yes they do, and unfortunately that is the cost of doing business for the bank. As Derwood pointed out, your alternative to spending $15 is to reimburse the customer $60.
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Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
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#2007520 - 04/10/15 07:38 PM Re: Customer's Disputed Debit Card Charge leo_bsayer
leo_bsayer Offline
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Posts: 645
Thank you, Brian. I appreciate your and everyone's help!

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