Is it possible through the Visa Network or some other way to not allow ATM/Debit card transaction through certain countries? It seems like we are taking losses from Hungary and Romania due to customers falling victim to Internet scams, then we see ATM withdrawls out of these countries. With Reg E giving us no relief, any way to block the authorizations from certain countries???

I'm not sure if Visa would allow you to block them even if it is possible. I'd recommend disclosure of this restriction to all your Reg. E customers as this would be a restriction on access to their funds.

I cannot speak for VISA, but we had a situation where several customer card numbers (MasterCard) were compromised and used in the United Kingdom. We contacted our STAR representative to find out the problem was fairly widespead across several institutions, and that they had no information on when or how the numbers were compromised. The advised and allowed us to turn off the United Kingdom for all transactions except for PIN based items.
Check with your debit card processor, Anon, they should have more information for you.

Anon, it is possible, our company has blocked transactions from Mexico due to large amounts of fraudulent transactions taking place there. Definately talk to your provider and find out your options.

What happens if a customer travels to Mexico and wants to use their card? How is that handled?

... Let me start by saying, this is not my department and I have been informed of this through a monthly banking newsletter. In the newsletter it states that all PIN-based transactions are being denied. If they wish to use the card, I believe they have to use their card on the Signaure side.

To the best of my knowledge, we have had no problems what-so-ever with this switch. Again, since I don't process the ATM transactions, I'm not entirely sure how it works.. or how it's handled. ... so I probably didn't answer your question. Sorry!

What if they want cash at an ATM?

I'm picturing me on vacation somewhere and my bank won't let me use my ATM card!