Business EFT Disputes

Posted By: M&M

Business EFT Disputes - 02/11/05 04:18 PM

We're debating how to handle business EFT disputes for ATM, POS and debit transactions. Granted, Reg E does not apply to these transactions, however do network, MasterCard or Visa rules apply and require that these items be researched? Our Operations group wants to be able to immediately deny anything that is a business transaction, however our gut tells us that perhaps other "rules" may require that we still research these items, just
not in the time frame set forth in Reg E. Any thoughts you have on this would be appreciated! Thanks.
Posted By: DeeQ

Re: Business EFT Disputes - 02/11/05 04:24 PM

Did you check your contractual obligation to MC & VISA? I am sure they have error resolution guidelines somewher...
Posted By: Chiquita Banana

Re: Business EFT Disputes - 02/11/05 04:27 PM

You could flat out deny anything that is a business transaction dispute but I don't think that's the best approach.

What type of agreements do you provide to the business customers? If we are giving debit cards to our business clients, we tell them that they are solely responsible for the transactions and security of the cards. In situations where a fraudulent transaction has occurred, we will do our best to investigate and find a resolution. But, they're still liable if no resolution can be found.

VISA rules still say that you must give provisional credit within five days (as opposed to Reg E's 10) and I don't know if they differentiate between business or consumer cards. I doubt it.

If you need a copy of our business debit card agreement, PM me and I'll send it out.
Posted By: John Burnett

Re: Business EFT Disputes - 02/11/05 05:19 PM

VISA's zero liability rule (which includes the five day period) does not apply to commercial cards, according to their Web site.
Posted By: Chiquita Banana

Re: Business EFT Disputes - 02/11/05 06:15 PM

Good to know.

But I would still think it to be good customer service to attempt the chargebacks on the customers behalf.
Posted By: Skittles

Re: Business EFT Disputes - 02/11/05 06:24 PM

We are having the same types of issues. We were told by Visa that since we used consumer BINS (don't know exactly what that is but it has something to do with the first numbers of the card), that Visa rules do apply here. It's kind of a mess right now.
Posted By: rlcarey

Re: Business EFT Disputes - 02/11/05 07:40 PM

It been a while for me, but if you are issuing these cards under your consumer program you may have an issue. You need to be issuing business cards under their business card program, which of course if I recall, you need a separate licensing agreement with VISA and MC .
Posted By: Skittles

Re: Business EFT Disputes - 02/11/05 07:47 PM

This is what they found out a few months ago. We are no longer issuing debit cards to businesses. For some reason the commercial lenders didn't realize that liability when these were being approved.