Skip to content
BOL Conferences
Thread Options
#2246977 - 12/29/20 02:15 AM P2P Dispute - Reg E Liability
mnbanker09 Offline
100 Club
Joined: Jan 2018
Posts: 128
Looking to verify that I am understanding the following scenario(s) as it relates to Reg E and bank liability.

Customer claims a "Google Pay" debit card charge on their account is unauthorized; charge is a P2P transfer. It could be any P2P provider, Venmo, Zelle, Paypal, etc.

If the customer has a Google Pay account, and the customer added their debit card to their account, and then an authorized transfer occurs, the claim as it relates to Reg E and liability falls to Google Pay, as the EFT provider, correct?

If the customer does not have a Google account, and doesn't recognize the transaction at all, then the Bank is the EFT provider and must follow Reg E?

Thanks in advance for your feedback!

Return to Top
Deposits and Payments
#2246993 - 12/29/20 05:12 PM Re: P2P Dispute - Reg E Liability mnbanker09
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
It all comes down to:

Sec. 1005.14 Electronic fund transfer service provider not holding consumer's account

(a) Provider of electronic fund transfer service. A person that provides an electronic fund transfer service to a consumer but that does not hold the consumer's account is subject to all requirements of this part if the person:

(1) Issues a debit card (or other access device) that the consumer can use to access the consumer's account held by a financial institution; and

(2) Has no agreement with the account-holding institution regarding such access.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2247000 - 12/29/20 08:14 PM Re: P2P Dispute - Reg E Liability rlcarey
mnbanker09 Offline
100 Club
Joined: Jan 2018
Posts: 128
Thank you!

The "access device" in this situation would be the user ID/password ('code') to access the payment service, correct?

Return to Top
#2247105 - 01/04/21 05:12 PM Re: P2P Dispute - Reg E Liability mnbanker09
Valley girl Offline
Gold Star
Joined: Aug 2014
Posts: 394
TX
I'm still trying to understand this segment of the reg.

I have a member that had fraudulent Cash App transactions over the weekend. These transactions do not show on her Cash App account (that she uses all the time). So her Cash App access device was not used. The Cash App terms and conditions state this:

We will protect you from Unauthorized Transactions in your Account. When this protection applies, we will cover you for the full amount of the Unauthorized Transaction, so long as we were able to complete the Error Resolution procedures described above.
An "Unauthorized Transaction" occurs when money is sent from your Account that you did not authorize and that did not benefit you. For example, if someone steals your password, uses the password to access your Account, and sends a payment from your Account, an Unauthorized Transaction has occurred.

The rest of the terms and conditions does give the timing of giving Cash App notice of the unauthorized transactions. Does 1005.14 still apply in this case?

Return to Top
#2247167 - 01/05/21 04:06 PM Re: P2P Dispute - Reg E Liability mnbanker09
mnbanker09 Offline
100 Club
Joined: Jan 2018
Posts: 128
As I understand this, if the transactions did not occur from her Cash App account, then she has no claim or recourse to CashApp as the EFT Provider.

Return to Top

Moderator:  John Burnett