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#2262928 - 11/29/21 12:38 PM Reg E: Counterfeit cash at ATM
Rainer Offline
New Poster
Joined: Jan 2020
Posts: 6
Good day everyone!

A simple scenario which we have not come across so far – cardholder claims that they received counterfeit cash on an ATM.

Unable to provide any evidence to back up this claim.

Should this be treated as non-receipt of cash under reg E?

Or is this more of a merchant dispute, as the issuer has no visibility or control over such matters?

Of course the acquirer would be able to prove that the funds were dispensed via the usual ATM logs, but card schemes don't seem to oblige them to address any counterfeit claims.

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#2262957 - 11/30/21 12:02 PM Re: Reg E: Counterfeit cash at ATM Rainer
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,224
Galveston, TX
Can I ask one question? What did the customer do with the counterfeit currency that they received?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2262964 - 11/30/21 02:37 PM Re: Reg E: Counterfeit cash at ATM Rainer
Rainer Offline
New Poster
Joined: Jan 2020
Posts: 6
They are not answering to our further questions, but as I understand, from a regulatory perspective they are not obliged to?

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#2262968 - 11/30/21 02:50 PM Re: Reg E: Counterfeit cash at ATM Rainer
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,224
Galveston, TX
If they spent the counterfeit money, then they themselves committed a felony. If they cannot produce the evidence that the money they received is counterfeit, which is their claim and not that they did not receive the cash or the withdrawal was not authorized, then I would have no problem with denying the claim. Under Regulation E, the transaction was properly authorized.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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