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Amount of Cardholder’s Liability

Answered by: 
John Burnett

Question: 
Our cardholder's debit card number was stolen and several transactions were completed at gas pumps. No PIN was used, so we are trying to determine whether the cardholder is liable for $50 or $0. The only way our cardholder would be liable for $50 is if a non-Visa network processed the transactions. Our reports list HVIPNT in the network field and we cannot determine what that stands for. Any ideas on how to locate that acronym? Also, are we correctly understanding how Visa rules and Reg E work, in that whichever is better for the consumer is the rule we should apply?
Answer: 

Visa transactions are flagged as such on your network reports, and they typically result in authorization holds followed after the fact by the actual transaction. It does not sound like you are looking at Visa transactions, so you are left with the Reg. E $50 rule.

Your assumption about the relationship between the Visa and Regulation E liability provisions is correct. When both apply, the one more favorable to the consumer controls.

First published on BankersOnline.com 3/23/09

First published on 03/23/2009

Filed under: 
Technology
Filed under technology as: 
IT

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