If customer refuses to assist us in our investigation (looking at pictures we pulled from the ATM where the disputed transaction occurred) can we deny the dispute, or are we still responsible for giving her credit. From the picture we pulled it looks like our customer in the passenger side of the card, but it's not the best picture and we aren't 100% sure it's her.

All the customer has to do is provide their name, enoigh information to identify their account number, and why they believe an error exists 1005.11(b). After that the burden of the investigation is on you. If you conclude the transaction is authorized, you deny the claim according to the procedure in 1005.11(d), reverse provisional credit (if applicable), honor overdrafts (if applicable) and provide the customer with the right to request copies of what you relied on to deny the claim. If you conclude the transaction is unauthorized, you finalize the credit.

You cannot deny a claim due to lack of customer participation. They satisfied their obligation under 1005.11(b) to notify you of a potential error. Now you make a decision with the evidence you have in your possession. If you are not sure and you decide incorrectly, then you have a Reg E violation, so it is a risk-based decision if you rely on circumstantial evidence or best guess when you deny a claim.

Thank you.