Hello BOL. I've searched the site without much luck, so I apologize if this has been asked.
We have received a card dispute for unauthorized transactions on an HSA debit card. Our operations team is wanting to deny the claim because HSA accounts are not covered by Reg E and are of the same understanding these are also exempt from Mastercard's Zero Liability protections, based largely on the following from MC's website, "For additional protections with respect to unauthorized transactions, please contact your bank or credit union." The rationale is that because MC directs the customer back to the FI, it puts the onus on the FI to determine liability, and since these are exempt from Reg E, the liability belongs to the customer.
I have always understood MC branded cards (including HSA) are covered by their zero liability protections, but I can't find a reference to it. Can someone confirm these are covered? (preferably with a MC citation). Or if I'm wrong, the same request - can someone please provide confirmation, again - preferably with a MC citation.
I reject your reality and replace it with my own.