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Check Card Dispute - VISA Zero Liability Rule

Answered by: 
John Burnett

Question: 
We have a customer who has filed a check card dispute for unauthorized transactions. He states that he has possession of the card. We received notification that we do not have charge back rights because the card holder and merchant used the VISA secure code from the card. Are we in violation of VISA zero liability rule if we do not give this customer his money back? This is the fourth time this customer has filed a dispute claiming fraud in the past three years.
Answer: 

To determine whether you would violate the Visa rule you will need to review your Visa contract documentation. There may be a loophole for you based on the earlier fraud claims. It would seem reasonable, if this is the fourth fraud claim in three years, that your bank consider asking this customer to take his business elsewhere.

First published on BankersOnline.com 10/13/08

First published on 10/13/2008

Filed under: 
Technology
Filed under technology as: 
Claims
Fraud
IT

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