Scenarion:A consumer opens an account with (AOL), gives them his/her Visa debit card number and tells them to debit her account each month for the fee. After 1 month she called and told them it did not work and she wanted to cancel. 6-months later she comes to the bank and states she told them to cancel the transaction and she wants the bank to refund her for the debits that posted to her account during the past 6-months.
She never opened a statement so she did not realize they posted.
This is a card transaction but it was not lost or stolen- Does the VISA -0- customer liability apply and does the $50 REG E liability apply?
My thought is neither would apply since the card was not lost or stolen.
I am guessing that we are liable for the first 60 days from the first statement date and she is liable for the remaining debits.
I would like some other opinions.

Check out Reg E 205.6
3) Periodic statement; timely notice not given. A consumer must report an unauthorized electronic fund transfer that appears on a periodic statement within 60 days of the financial institution's transmittal of the statement to avoid liability for subsequent transfers. If the consumer fails to do so, the consumer's liability shall not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the institution, and that the institution establishes would not have occurred had the consumer notified the institution within the 60-day period. When an access device is involved in the unauthorized transfer, the consumer may be liable for other amounts set forth in paragraphs (b)(1) or (b)(2) of this section, as applicable.

In order to apply to the V/MC rules of 0 liability, the card has to have the brand name AND the transaction has to be processed through their network. I think that typically only signature based transactions will go through the V/MC network.

In this case, I think Bankster is right & 205.6 applies.