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#2256775 - 07/15/21 09:23 PM Business Debit Card - Provisional Credit Rules
Anonymous
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What are the business debit card provisional credit rules under Mastercard? And are these required to be included in the agreement/terms and conditions document given to customer?

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#2256776 - 07/15/21 09:34 PM Re: Business Debit Card - Provisional Credit Rules Anonymous
rlcarey Offline
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rlcarey
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You might want to get with your Mastercard service representative. If you do not already have a robust business debit agreement, then likely the bank is assume significant risks.
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#2256840 - 07/18/21 04:30 PM Re: Business Debit Card - Provisional Credit Rules Anonymous
Andy_Z Offline
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Brian Crow is our resident expert on V/MC rules, but I don't recall MC imposing additional rules on provisional credit. If this is still the case as it was a few years back, hopefully your deposit agreement says there is none or otherwise includes what your bank is doing. Your bank needs to have a solid agreement, but if it specifies "this is what we do" than what you do not do is there by omission. What you don't want is any inference you follow Reg E rules. Your agreement should include what MC rules require.
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#2256864 - 07/19/21 03:04 PM Re: Business Debit Card - Provisional Credit Rules Anonymous
BrianC Online
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BrianC
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Mastercard Rules are silent on provisional credit requirements. Since business debit cards are not covered by Reg E, as Randy and Andy note, your card agreement should state how you handle disputes and assign liability.
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#2256934 - 07/20/21 12:53 PM Re: Business Debit Card - Provisional Credit Rules BrianC
Anonymous
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Thanks Brian. Since you are the "card expert" may I ask you a couple of additional questions - what do you see as the normal standard banks tend to follow regarding provisional credit/handling disputes and liability on business debit cards? Do some banks follow the same provisional credit rules as Reg. E on business cards, even though these rules don't technically apply since this is a business card?

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#2256939 - 07/20/21 02:19 PM Re: Business Debit Card - Provisional Credit Rules Anonymous
John Burnett Offline
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John Burnett
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Cape Cod
Some institutions do, in fact, provide essentially the same provisional credit and liability provisions to businesses that are required for consumer accounts. My sense, however, is that these institutions tend to be small and have few business debit cards issued.
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#2256942 - 07/20/21 02:55 PM Re: Business Debit Card - Provisional Credit Rules Anonymous
BrianC Online
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BrianC
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Illinois
Agree with John. The ones that choose to are often fearful of running afoul of Regulation E and don't want staff to deny Reg E protections to a consumer because they did so on a business claim that they had just processed.

It comes down to a staff training issue and a customer service issue.
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