Hi, I'm curious how other banks budget for losses due to debit card disputes. I'm thinking we should look at debit card sales and take a certain percentage of those sales for losses/chargeoffs. Currently for us we chargeoff an average of 16% of sales due to unauthorized debit card claims. Also curious what % others are seeing and what size bank you are.
We are a 12 billion dollar bank.

16% of sales? What sales?

Debit card purchases...

So you are saying for every $100,000 in debit card purchases your customers are making you are charging off $16,000?

Man, even being a $12 Billion bank - how the heck can you 1) afford it or 2) continue to issue debit cards.

That cannot be anywhere close to industry standards.

big typo.. 0.001622
i should learn to proof read.

0.16% of POS transactions sounds more reasonable.

If that's based on real numbers over a period of time, that could be a useful way to estimate charge-offs.