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#2240345 - 07/29/20 05:18 PM Card Dispute and Interest Refund Calculation
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Customer lost wallet/card and sees unauthorized transactions on his account and timely notifies bank. Unauthorized transactions total $2,239.18, Bank issued provisional credit, but also needed to include interest and failed to do so. How is the "interest" reimbursement calculated in a dispute situation like this? The interest rate on the account is .05%. There were only two days from the date the unauthorized transactions posted to the date provisional credit was credited to customer's account. Can someone provide a calculation for this?

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#2240352 - 07/29/20 05:52 PM Re: Card Dispute and Interest Refund Calculation TeamComply
rlcarey Online
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Galveston, TX
$2,239.18 times .05% divided by 365 times 2 = $0.06
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#2240354 - 07/29/20 05:57 PM Re: Card Dispute and Interest Refund Calculation rlcarey
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Thanks, I knew it was simple. And if the annual percentage yield earned listed on the statement was .06% do I use this instead or always the stated interest rate?

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#2240356 - 07/29/20 06:00 PM Re: Card Dispute and Interest Refund Calculation TeamComply
rlcarey Online
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Galveston, TX
Stated interest rate
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#2240358 - 07/29/20 06:12 PM Re: Card Dispute and Interest Refund Calculation rlcarey
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And you count calendar days when determining days between unauthorized debit and provisional credit date?

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#2240365 - 07/29/20 07:00 PM Re: Card Dispute and Interest Refund Calculation TeamComply
rlcarey Online
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Yes - the number of days that the system will not calculate the interest on the unauthorized withdrawal amount, unless you have a system that allows you to backdate the provisional credit, then your core system will take care of it automatically.
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#2267327 - 03/08/22 09:58 PM Re: Card Dispute and Interest Refund Calculation rlcarey
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So customer thought she was ordering something from home depot, but turned out to be a fraudulent website. She is dispute charge posted to her account from January. Bank is not planning to investigate (not issuing provisional credit, just final credit) and just plans to refund customer. Must we still reimburse for any "lost" interest she earned between January and now? Where the regulation speaks of (interest where applicable) is under the investigation section and with regard to provisional credit. Are we still required to reimburse in our scenario? Thanks.

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#2267332 - 03/08/22 10:58 PM Re: Card Dispute and Interest Refund Calculation TeamComply
rlcarey Online
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Galveston, TX
It is not a Regulation E error, so it would depend on your card issuer rules.
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#2267334 - 03/08/22 11:02 PM Re: Card Dispute and Interest Refund Calculation rlcarey
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We are a Mastercard branded card issuer. Do you happen to know what their rules are with regard to this?

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#2267337 - 03/09/22 12:47 AM Re: Card Dispute and Interest Refund Calculation TeamComply
BrianC Offline
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Illinois
Mastercard and Visa are silent on reimbursement of interest. Since this is not a Reg E error, you have no obligation to reimburse for lost interest.
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#2267360 - 03/09/22 04:32 PM Re: Card Dispute and Interest Refund Calculation BrianC
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Thank you BrianC appreciate this helpful information!!

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