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#2267206 - 03/04/22 07:14 PM PlayStation Dispute - Reg E???
tserbin Offline
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Joined: Sep 2017
Posts: 27
I wanted to get your thoughts on this specific situation.

Customer files a claim and states that he added his debit card to son's PlayStation console. He states that he set up password protection and would occasionally add funds for his son. He claims his son was able to figure out the password and has been using the card to make purchases. This has been occurring since November and the charges add up to more than $5,000.00.

Is the customer protected under Reg E since he claims the kid apparently figured out the password?

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eBanking / Technology
#2267216 - 03/04/22 10:47 PM Re: PlayStation Dispute - Reg E??? tserbin
Andy_Z Offline
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Key Reg E issues are, did the customer do it, authorize it, or benefit from it? If he in fact never gave the PW to the son he didn't do it or authorize it. Did he benefit from it? That may be questionable, it's on a device presumably under his control and being used by his son, and he has a license to use it but in front of a jury of 12 your chances would be slim.

I'd look at what is after the "statement + 60 day" rule to see how much falls in the unlimited tier of liability as to your real exposure. I'd ask when dad learned of the very first charge and did he just wait until it accumulated to being real money before he brought it up? I'd also ask, will the bank file a police report - realistically and is dad going to spend more money on his son's lawyer or does dad want his son arrested and to go to court to teach him a lesson? Banks don't often push these issues and do not talk about it if you won't. Empty threats do not pay off. Lastly, when the smoke clears ask yourself if you want this customer on your books. Dad may just come back later with another claim but better answers as to what he didn't know.
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My opinions are not necessarily my employers.
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#2288292 - 09/01/23 04:20 PM Re: PlayStation Dispute - Reg E??? tserbin
Valley girl Offline
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Joined: Aug 2014
Posts: 394
TX
Nephew comes to visit and his aunt lets him use her Playstation device. He orders a game - there is no PIN or security on the Playstation device. Is this unauthorized or is would it fall under "exceeds authority?"

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#2288310 - 09/01/23 08:17 PM Re: PlayStation Dispute - Reg E??? tserbin
rainman Offline
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rainman
Joined: Nov 2004
Posts: 3,237
Let's break down what happened here. How was nephew able to order the game without providing a debit or credit card? It's because she gave Nintendo her debit card number and authorized Nintendo to use it to pay for orders make on her Playstation account. Nephew isn't using her card or any other access device at all.

If she thinks Nintendo should have blocked the purchase somehow, that's between her and Nintendo. But as to the card transaction, she authorized Nintendo to charge her account purchases to the debit card. That's exactly what Nintendo did.
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#2288317 - 09/01/23 08:56 PM Re: PlayStation Dispute - Reg E??? tserbin
Valley girl Offline
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Joined: Aug 2014
Posts: 394
TX
Thank you rainman.

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#2288656 - 09/13/23 06:01 PM Re: PlayStation Dispute - Reg E??? tserbin
Isn'tThisFun Offline
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Joined: Sep 2016
Posts: 22
Does Mastercard zero liability play into this at all? We have a customer whose child purchased games on the customer's phone and they are saying they were unauthorized. However, we are under the assumption that they were authorized per the Reg E definition since she had her information in the phone and allowed the child to use the device. However, I wanted to know if there was anything else that would protect them with it being a Mastercard card.

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#2288744 - 09/15/23 09:59 PM Re: PlayStation Dispute - Reg E??? tserbin
Andy_Z Offline
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Doesn't zero liability hinge on responsible care with the access device? I recall each bank is to define this but I don't know what guidance MC provides.

Giving someone unfettered access and trusting them is not responsible to me. I'm not familiar with the gaming system, but if there is a logon code of any sort, that can be the access device.

There was a recent case of a mom who gave her (I think he was autistic or special needs) son her phone. He didn't realize the $6,000 he spent was real money, she said. But Google (again is who I recall it was) said no refund, then her bank said the same. I agree with their conclusions. She authorized use and had no controls.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#2288769 - 09/18/23 03:18 PM Re: PlayStation Dispute - Reg E??? tserbin
Isn'tThisFun Offline
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Joined: Sep 2016
Posts: 22
Thank you!

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