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#893905 - 01/25/08 06:15 PM Business Liability
C_Groat Offline
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Joined: Mar 2006
Posts: 70
Salt Lake City, UT
What strategies/policies do other banks apply involving business debit transactions with PIN which are not protected by Reg E or Visa/Mastercard Zero Liability? Business responsible for everything, bank takes first 24 hours - business liable for the rest, bank responsible for everything?

In our scenario, the business was broken into and Pin/Card stolen, which was co-located in the office. Business was aware of the break in few hours after it occurred when PIN losses were below $3,000, but did not report card stolen for two days resulting in much higher losses. We do offer 24/7 customer service to report the cards stolen.

Any advise is appreciated. Thanks

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eBanking / Technology
#893989 - 01/25/08 07:32 PM Re: Business Liability C_Groat
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,601
Galveston, TX
It comes down to your contract.
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#894048 - 01/25/08 08:02 PM Re: Business Liability rlcarey
Andy_Z Offline
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I don't know that there is a standard. If I were writing the agreement I would place everything on the business. If you were trying to draw business in, you may have been more liberal. But for a case that is now pending, as Randy notes it depends on what you have already agreed to.
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#894211 - 01/25/08 10:03 PM Re: Business Liability Andy_Z
C_Groat Offline
Member
Joined: Mar 2006
Posts: 70
Salt Lake City, UT
Thanks, the agreement does put complete liability on the business for PIN based activity, but with this large of a loss on a small business there is some second guessing if that is what should be done.

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