EFT Disclosure - Visa Transaction Limitations

Posted By: Mel in WA

EFT Disclosure - Visa Transaction Limitations - 09/24/19 07:33 PM

I'm converting our current EFT disclosure into a new software. In our current version, we are disclosing: "Visa transaction limitations - up to $2,500 worth of goods and services each day through signature based transactions". Is this required per Reg E?

Not sure I want to co-mingle Visa and Reg E in this particular disclosure....
Posted By: Skittles

Re: EFT Disclosure - Visa Transaction Limitations - 09/24/19 07:47 PM

So - to be clear - you will only allow $2,500 for POS transactions per day using their debit card?
Posted By: BrianC

Re: EFT Disclosure - Visa Transaction Limitations - 09/24/19 07:56 PM

If you'd rather call it, "Point of Sale Debit card transactions" rather than "VISA Signature transactions" that's fine, but Reg E 1005.7(b)(4) requires that you disclose transaction types and transaction limitations such as a $2,500 daily limit.
Posted By: Mel in WA

Re: EFT Disclosure - Visa Transaction Limitations - 09/24/19 10:02 PM

We are disclosing the transaction types and daily limits ($2500) for our POS debit cards, according to 1005.7(b). What I'm finding is our current disclosure has Visa references all over, but my new software is not requiring we add verbiage for Visa, since it's based on the requirements of Reg E.

For example, right under where our POS/debit card limits are disclosed is this: "The limitations on your liability for unauthorized transactions described above generally apply to all electronic funds transfers. However, different limitations apply to certain transactions involving your card with the Visa logo. These limits apply to unauthorized transactions processed on the Visa Network."
Posted By: Mel in WA

Re: EFT Disclosure - Visa Transaction Limitations - 09/25/19 06:19 PM

Bump - Should we be co-mingling Reg E and Visa requirements in our EFT disclosure? My concern is my software will update changes to Reg E, but not Visa.....
Posted By: Andy_Z

Re: EFT Disclosure - Visa Transaction Limitations - 09/27/19 09:15 PM

As it relates to your overall rules and agreement, it all requires disclosure, especially liability. They need to be commingled or clearly refer to one another. I see this as an issue of disclosing your contractual agreement with the consumer. Let's look at 1005.7(b)(1) which describes, in part, the initial disclosures you must make under Reg E. "A summary of the consumer's liability, under Sec. 1005.6 or under state or other applicable law or agreement, for unauthorized electronic fund transfers". "other applicable law or agreement" would apply as they are not law, but an agreement you have between the bank, Visa and the consumer.

And the .6 reference is to 1005.6(b)(6) which states "If state law or an agreement between the consumer and the financial institution imposes less liability than is provided by this section, the consumer's liability shall not exceed the amount imposed under the state law or agreement." So again we have "agreement" restrictions that should be disclosed.

These are not "Visa rules" but your obligation to your consumers and whether they be transaction limitations or liability, if they are required by Reg E they need to be specified and differentiated when only applicable to certain transactions such as thru a Visa system.