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#862233 - 11/28/07 09:08 PM Reg E - Preauthorized Transfers
C_Groat Offline
Member
Joined: Mar 2006
Posts: 70
Salt Lake City, UT
Would America Online, Gold's Gym or other types of monthly membership services billed to a MasterCard/Visa debit card number be considered a Preauthorized Transfer under 205.10?

If these are considered pre-auth'd transactions, how are other banks compling with 205.10(c) to stop future transactions from hitting the individual account without having the transaction post, then chargeback after it already occurred?

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eBanking / Technology
#862307 - 11/28/07 10:23 PM Re: Reg E - Preauthorized Transfers C_Groat
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,409
Cape Cod
Yes, assuming the card is attached to a consumer asset account subject to Regulation E protections.

I believe that MasterCard and Visa both have blocking services that address exactly the scenario you've described. There is undoubtedly a fee, but it is probably less expensive than the cost of the time involved in trying to recover funds through a chargeback.
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