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Ability to Deny Debit Card Claim-Determining Error

Question: 
We are reviewing our ability to deny debit card claims, whether it be a dispute or fraud case. If we have sufficient information to initiate and investigation, but don't have sufficient information to determine it an error occurred or didn't occur, are we able to decline the claim based on the fact that in the course of our investigation, the information we have does not support the customer's claim? For example, we have a customer claiming fraud, who states they have the card in possession but did not make the purchase. If during the course of our investigation we can see that the item in question was in fact delivered to the customer's home address, can we deny it for stating that it appears the customers benefited from that transaction since the item purchased was delivered to the address on file?
Answer: 

by Jim Bedsole: In your example, you would be completely within your rights to deny the claim for the reasons you stated.

Answer: 

by Andy Zavoina:

I would advise against using these terms, "but don't have sufficient information to determine it an error occurred or didn't occur," in conjunction with "able to decline the claim based on the fact that in the course of our investigation, the information we have does not support the customer's claim?"

You will make a decision based on the evidence you gather during the investigation. To say you don't have the information to make a decision, and then to decide in favor of the bank is anti-consumer and could cast doubt on the extent of the investigation itself because the bank will generally "win."

I would document that the item in this case was delivered to the accounholder's address, and that they received it. If the package was delivered and stolen, that leaves some doubt but if the customer received it and didn't just send it back for a refund clearly shows an intent to profit from the purchase. This would be ascertained during the initial statement.

First published on 11/11/2018

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