We are in the process of creating a business debit card agreement. We are working with our forms vendor in creating it. Looking at the proof we received today we notice that in the Unauthorized Transfers and Error Resolution sections they have terminology that reads:

You agree that the time to examine your statement and report to us will depend on the circumstances, but will not, in any circumstance, exceed a total of one year from when the statement containing the error or problem was first mailed or
made available to you. If you do not report within one year, we will be entitled to treat such information as correct and you will be precluded from asserting otherwise. You further agree that if you fail to report to us within 14 days from when the statement was first mailed or made available to you that we will not be required to pay interest on any refund to which you may be entitled.

We were under the impression that aside from MasterCard liability, we could determine notification requirements for business accounts when it comes to unauthorized transactions. I've contacted our forms vendor also but was just wondering if anyone else has ever come across the above requirements of 1 year and 14 days.

Help!

Thanks

I've seen 30 and 60 days in agreements I've looked at, but not a year. Is this a UCC issue which you can adjust and the vendor is using the stock period allowed instead?

According to our vendor this is the "standard" that they start with but would be able to be changed to what we want it to be. Thus we are considering 30 days. As far as liability under MasterCard it is my understanding that we can determine the time frame they need to report to us also. For instance - MasterCard states that the customer "promptly" reports the loss to us but does not specify what "promptly" is. We can determine that "promptly" means "2 days" if want......correct?

I swear this all has to be the most confusing compliance issue I deal with! I just have a hard time grasping it all.....

Thanks for any help!