Good Afternoon!

We have a business customer who has just noticed they have been getting charged for a monthly service on their Visa debit card that they cancelled over a year ago. They have contacted the merchant and they were willing to refund them for the last 2 months. The customer also filed a dispute for October, November & December's charges (but not January's). Since this is a business account, at what liability does the Bank need to take? It sounds to me that they have found a resolution with the merchant and no action needs to be taken on our end. However, I'm not sure we need to cover a 60 day window from their last statement? Technically we have 120 days from the transaction date to file a Visa dispute.

Thank you in advance for your time!
-Monica

Although small business debit cards are covered by Visa Zero Liability, to qualify the customer must meet Visa requirements:

"If you experience unauthorized transactions, notify your financial institution immediately. Replacement funds are provided on a provisional basis and may be withheld, delayed, limited, or rescinded by your issuer based on gross negligence or fraud, a delay in reporting unauthorized use, an investigation and verification of a claim, and account standing and history."

If this is going on for a year, it is safe to say that the customer had a delay in reporting unauthorized use. Your business debit card agreement should provide specific details of what your obligations are for reimbursing unauthoized transactions so be sure that you eview that document and follow what you have disclosed. If your card agreement holds the customer liable because they failed to povide timely notification, then there is nothing additional that you need to do.

,,,, other, perhaps, than a friendly reminder that the business has an obligation to check its monthly statements and report unauthorized activity on a timely basis.