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#2236104 - 05/04/20 06:11 PM Reg E Fraud Dispute Scenario - Application Access
racingtofriday Offline
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Joined: Nov 2014
Posts: 13
We have a specific Reg E scenario we would like an expert opinion on:

A customer has filed a dispute on several unauthorized APPLE.COM charges. During the conversation with the customer, they have admitted that these transactions were conducted by his 11 year old son; however, he never gave permission to use it in any way. He stated Apple has a family sharing feature they have registered for and in order for his son to have an account, a card number was needed.

Our understanding of Reg E and in previous situations, we are required to move forward with a fraud claim if the individual cardholder has never authorized that individual to use their card. However, this specific scenario, the customer is admitting that they stored his card number in an application his son has access to.

Would you be able to provide us some guidelines on if we are able to decline these disputed transactions based on providing access to an application of which their card number was stored?

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eBanking / Technology
#2236105 - 05/04/20 06:23 PM Re: Reg E Fraud Dispute Scenario - Application Access [Re: racingtofriday]
rlcarey Offline
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Joined: Jul 2001
Posts: 73,292
Galveston, TX
They authorized tying the card to the account. What happens after that is between Apple and customer. The bank is out of the picture.
The opinions expressed here should not be construed to be those of my employer:

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#2236129 - 05/04/20 08:31 PM Re: Reg E Fraud Dispute Scenario - Application Access [Re: racingtofriday]
Andy_Z Offline
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Joined: Oct 2000
Posts: 27,016
On the Net
I want an Apple account the family can use.
The account must have a card.
I attach my card to the account and the users have access to make purchases.

{Thinking Pause}

Unless Apple allows the account to restrict which users have access to make purchases, I would opine that dad has allowed each user on his account to use his access device he put on the account. That is, he can say hot card my account and nothing gets paid, or pay the incoming charges because I have authorized these directly or indirectly.

The bank cannot differentiate which charges were from which users. Dad needs to secure his card (info) if he doesn't want the Apple authorized users to be able to use his card. Then Apple gets upset, but hey, at least dad will have his money.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#2236255 - 05/06/20 06:03 PM Re: Reg E Fraud Dispute Scenario - Application Access [Re: racingtofriday]
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 38,481
Cape Cod
Reg E ยง1005.14 also says this is between the Dad and the Apple folks.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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Moderated by:  Andy_Z