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Fraud Alert on Card-Customer Claims Not Fraud

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We have a customer who had a fraud alert on her card for one transaction. She told the fraud center that it was not fraud. Her card was reopened. Now she turned in a dispute for 2 transactions (one is the same she said was not fraud, the other is from the same place) claiming that these are fraud. Do we file the dispute for both? Do we deny both because she said the first one wasn't fraud?

The customer has the right to claim fraud and the bank needs to investigate. At the end of the day, the bank should evaluate any losses incurred, the relationship with the consumer and whether a card should be issued to them at all. Giving approval and then reneging on that is easily justification to me.

View the claims and any possibility that the consumer did the transactions, authorized them, or benefited from them. If they did, deny the claim. If they did not, review the immediate approval process the customer gave when contacted and make a decision - was it easy for the consumer to be mistaken or negligent, or is this buyers remorse and the transaction asked about was approved.

If you feel confident the consumer approved the transfer when spoken with, I would strongly consider denying the claim. I would attach both together if they were in the same claim and period when done unless there is evidence otherwise. It is a subjective case but the law puts the burden on the bank.

First published on 05/10/2020

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