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#2207555 - 03/01/19 06:42 PM Reg E--Xbox charges
Kristi Offline
Member
Kristi
Joined: Feb 2005
Posts: 94
We have had quite a few disputes over the past month with customers disputing debit card charges relating to Xbox fees. What is happening is...
Example... our customer gave his son his debit card to use for the Xbox and the son kept the number saved in the system. They sold the Xbox but forgot to delete the stored debit card information and the person they sold it to used the number to make a purchase through Xbox.

When we are getting information back from Xbox they are providing us with our customers name, address and console number but the customer is still stating that they sold it to someone else.

Has anyone had this situation come up recently?? Are you refunding the money back to the customer or finding it authorized and not refunding??

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Operations Compliance
#2207605 - 03/04/19 12:37 PM Re: Reg E--Xbox charges Kristi
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,658
Unfortunately, this meets the definition of an "unauthorized EFT" and appears to be covered by Reg E. In short, the purchase was "initiated by a person other than the consumer without actual authority" to make the purchase and your customer did not receive any benefit from the purchases made through the Xbox.

The definition from Regulation E:
(m) “Unauthorized electronic fund transfer” means an electronic fund transfer from a consumer's account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit. The term does not include an electronic fund transfer initiated:

(1) By a person who was furnished the access device to the consumer's account by the consumer, unless the consumer has notified the financial institution that transfers by that person are no longer authorized;

(2) With fraudulent intent by the consumer or any person acting in concert with the consumer; or

(3) By the financial institution or its employee.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2207610 - 03/04/19 01:50 PM Re: Reg E--Xbox charges Kristi
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
I agree, Adam. We may be frustrated at the customer’s negligence, but it is no different that if they had left their debit card with the PIN written on it taped to the XBox when they sold it.
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Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
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#2207663 - 03/04/19 06:38 PM Re: Reg E--Xbox charges Kristi
Kristi Offline
Member
Kristi
Joined: Feb 2005
Posts: 94
My thought was the same as writing the PIN on the back of the debit card but I was hoping someone would have a different answer since we've had quite a few (more than you'd like) come up lately. Thanks for the comments!

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