I am reviewing disputes that we have had and have come across one with the following explanation from our Operations dept.

"Per Visa requirements any fraudulent activity the debit card must be Hot Carded immediately. Per your conversation with our branch you indicated you didn't want your card hot carded. We are denying this claim. If you wish to pursue this any further, please contact the branch and resubmit your claim."

I have looked in the Visa rules and did not find this.
Can anyone direct me to where if it exists I can validate this?

Hmmm - hot carding is not an optional action on which the consumer gets to make a choice. The bank hot cards - end of story. If the bank didn't hot card, then the bank is the one that is going to be on the hook for additional Reg. E issues. The bank already had the opportunity to prevent them.

Thank you

Just to pile on to ensure that no one thinks this is a good idea. We cannot tell the customer they will be liable for charges if we agree to keep a card active. We cannot make the customer sign an agreement stating that they agree to be liable for charges if we keep the card open. Any such arrangements will run afoul of Reg E 1005.6. See this except from the commentary...

Limits on liability. The extent of the consumer's liability is determined solely by the consumer's promptness in reporting the loss or theft of an access device. Similarly, no agreement between the consumer and an institution may impose greater liability on the consumer for an unauthorized transfer than the limits provided in Regulation E.

Thanks for the chuckle.

As an example: Thought I lost my wallet, called credit card company to hot card the card. Spouse found the wallet 10 minutes later, immediately called the credit card company to reinstate the card. gave them initial hot card confirmation number and answer to all security questions. they still politely told me (paraphrased) "once it's a hot card it is a "done deal".