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Disputed POS Transaction Authorized - But Scam

Answered by: 
John Burnett

Question: 
We have a customer who has disputed a POS transaction that he DID authorize, but it turned out to be a scam. Since he did authorize the transaction, under Reg E, it is not considered an unauthorized transaction. Is this correct? I know that VISA has its own set of rules. Do you know if we are required to give him provisional credit according to VISA regs?
Answer: 

The transaction wouldn't meet Visa's definition of "unauthorized transaction," either, so provisional credit would not be required. You would, however, use Visa operating rules to pursue a refund, albeit outside of Regulation E’s protections.

First published on BankersOnline.com 3/7/11

First published on 03/07/2011

Filed under: 
Technology
Filed under technology as: 
IT

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