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#2255259 - 06/14/21 06:16 PM FBPay
Jenny Roberts Offline
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Joined: Feb 2014
Posts: 156
Tennessee
We have a customer that is incarcerated and has found out that their boyfriend made charges on their FBPay that has their debit card attached to it for payment method. If they are stating that this is an unauthorized transfer, does REG E apply? I am saying yes unfortunately but want to double check. Payment methods such as CASH APP, GooglePay & etc. are confusing as to what is determined as getting bank involved for REG E sometimes....Note this person is notorious for calling us saying that something is unauthorized but then finding out that they let the boyfriend have the debit card....

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#2255263 - 06/14/21 06:28 PM Re: FBPay Jenny Roberts
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
You let an incarcerated person maintain a debit card? That is your first mistake.

If they have linked their debt card to a third party service like this and someone gains access to the service, it is not the bank's concern.

See 1005.14: https://www.bankersonline.com/regulations/12-1005-014
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#2255265 - 06/14/21 06:32 PM Re: FBPay rlcarey
Jenny Roberts Offline
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Joined: Feb 2014
Posts: 156
Tennessee
Yeah I know....we didn't know they were incarcerated is the main issue...we are definitely not letting them have another one due to account history...thank you.

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#2255347 - 06/15/21 07:56 PM Re: FBPay Jenny Roberts
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,598
Cape Cod
Consider this, however (my opinion of the situation):
For 1005.14 to apply here, FBPay would have to issue an access device that can access the consumer's bank account without FBPay having an agreement with the bank. That isn't the scenario here. In this case, the cardholder gave card information (not account information) to FBPay, so the transaction comes to the bank via traditional card network connections. It's another version of the cardholder providing the access device to a third party with authorization to use it to complete transactions until notifying the card issuer that the authorization is cancelled.

Contrast that with a customer with a bank debit card who sets up an account with Venmo and gives Venmo routing and account number information to tap or credit the bank account for Venmo receipts and payments. They also give Venmo debit card information that connects indirectly to the same bank account.

If the customer issues a Venmo payment and has no money in their Venmo account, Venmo will debit the funds using either the account information or the debit card information, depending on instructions from the customer. If the transaction comes in via ACH, Venmo is the responsible financial institution under 1005.14. If it comes in as a debit card transaction, the issuing bank is responsible for EFT compliance.
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#2255352 - 06/15/21 09:09 PM Re: FBPay Jenny Roberts
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
Not that I disagree John, as I am more on the loan side of things now. So, this is just for discussion purposes and maybe Brian or someone can also jump in.

I give FBPay permission to debit my account using my debit card information anytime I make a transaction through FBPay. Therefor, in my mind at least, all transactions through FBPay are authorized. Someone gets access to my FBPay account and performs some transactions. I am really not sure how that falls on the bank. This is not like some food vender running their card through a half dozen times. They already authorized all FBPay transactions.
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#2255448 - 06/17/21 01:25 PM Re: FBPay Jenny Roberts
Jenny Roberts Offline
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Joined: Feb 2014
Posts: 156
Tennessee
In doing research, we have found that the debit card company alerted and froze the debit card after the supposed unauthorized transfers. 6 days later, the debit card was tried at the jail and was denied due to it being frozen. 4 minutes later, a call was made and a bank employee activated the card again. The employee does not remember who called but asked identification questions before reactivating it. Now whether they knew about the charges or not, the bank was given permission to activate the card.....what are your thoughts on this? The customer is mad and wanting to know when they will get the bank will give them their money back. They got made when we told them we have to do an investigation. They have told the law enforcement and law enforcement has issued a subpoena for the records.

Thoughts?

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#2255449 - 06/17/21 01:37 PM Re: FBPay Jenny Roberts
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
If you reactivated a card after fraudulent activity was reported, I don't think your have a leg to stand on regardless of what identification you asked for over the phone.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2255468 - 06/17/21 04:17 PM Re: FBPay Jenny Roberts
Valley girl Offline
Gold Star
Joined: Aug 2014
Posts: 321
TX
Just to clarify, you said the "cardholder" is in jail and a transaction was tried from the jail, correct?

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#2255496 - 06/17/21 06:09 PM Re: FBPay Valley girl
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 156
Tennessee
The supposed "ex" boyfriend got into her Facebook and sent money to himself. There have been some transaction for subsidies in jail so I am trying to find out if jail has the card or they just have her information. I can't find a clear answer on "who" actually has the card. She is telling us that her debit card information was taken without authorization...she has tried this before and knows what questions we are going to ask...

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#2255867 - 06/23/21 09:33 PM Re: FBPay John Burnett
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 156
Tennessee
Hi John, in response to your comment about FBPay, I was reading in BOL-Reg E Fraud-EFT Claim and see where someone was asking about FBPay and in your answer, you stated that FBPay is also an access device. While the scenario is way different from mine, would the customer not have to go back to Facebook to dispute transactions these and the bank not give provisional credit?

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