Skip to content

Debit Card Fraud - Customer Liability

Answered by: 

We have a customer that has had debit card fraud occurring on his account. He just now caught on to it, but it has been happening since 10/2008. What is his liability? How far can we go back for charge backs?

The customer's liability is all transactions occurring after 60 days following the first periodic statement showing the first error. Refer to Section 205.11(b)(1)(i).

Let's assume that the 10/08 statement showed the first unauthorized error and it occurred every month since then. Let's also assume it is $100 per month. You owe them for the $100 in 10/08, 11/08 and 12/08. They are liable for all transactions since then.

You can charge back through NACHA for the last 60 days. This may offset the money you give to the customer, but it often leaves you one month short ($100 in my example).

First published on 5/04/09

First published on 05/04/2009

Filed under: 
Filed under technology as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics