We issue Visa Debit Cards, which I know have zero liability. Can we require the customer to first try and resolve an issue with the merchant and then to provide us with the date, etc. as proof before we allow the customer to dispute a charge? Even if Visa rules allow, are we still required by Reg E to initiate the dispute when the customer first reports the transaction as unauthorized? This question is being asked because we find that so many times, the Bank will call the merchant and the merchant will issue a refund to the customer, but the customer has already signed the dispute form, etc. Looking for compliant best practice guidance. If you can direct me to a resource that would clarify Reg E vs Visa rules, that would be helpful.

If the claim is an EFT error as described in Reg E 1005.11, we can ask, but not require a customer to contact the merchant. Our investigation timeframe for providing provisional credit and completing the investigation starts when they provide notice of error. Even if we cannot use the VISA chargeback process to investigate a claim because a cardholder has not satisfied VISA requirements does not relieve us of our obligation to conduct an investigation under Reg E. We may be required to rely on other means such as contacting the merchant ourselves, using the internet to see if we can locate a contract on the merchant's website to help us decide what our customer may have agreed to, etc. Also, just because a customer makes a claim does not obligate us to file a chargeback with VISA. If we can complete our investigation using other means (which is often faster and cheaper) then by all means do so.

If a merchant has already issued a refund, then the error is addressed and there is no additional investigation for us to perform. If we have already provided provisional credit, we can send the customer a letter stating that we determined an error occurred and also identified that they received a duplicate credit and that we are debiting their account for the duplicate credit.

Although a bit self-serving, I have offered several webinars on VISA and Reg E Error Resolution . This link will take you to the most recent from September 2015. I am in the planning stages to offer another in 2016.