Zero Liability on business debit cards

Posted By: RDioquino

Zero Liability on business debit cards - 03/20/06 07:50 PM

We're considering offering Visa Business Debit cards to our customers but now that Visa implemented the Zero Liability policy for these types of commercial cards, how does this work along with Reg E? How do banks get protection on unauthorized claims by business debit cardholders?
Posted By: John Burnett

Re: Zero Liability on business debit cards - 03/20/06 09:27 PM

If you are careful to inform your business customers that any Regulation E disclosures won't apply to them, Reg. E won't be an issue for you, since it only applies to consumer asset accounts.

Visa's zero liability policy for business cards does not protect the business if one of its authorized cardholders actually does a transaction. But if you are contractually bound to give the business a refund under the $0 liability policy, you don't really have much recourse at all.
Posted By: Andy_Z

Re: Zero Liability on business debit cards - 03/21/06 02:25 PM

As John noted, "E" really doesn't apply unless you say you'll follow those rules and the commercial customer agrees. What you need is an agreement to replace what Reg. E does on the consumer side. But following the principle of "he who has the gold, makes the rules" you can place more liability and requirements on the commercial customer, so long as you are within your agreement with Visa.