Fraud using Verified by VISA

Answered by:

Question:

Our processor says we don’t have chargeback rights since a purchase was made using Verified by VISA. Can we deny the claim since the cardholder’s password was used?

Answer:

Regulation E does not permit claims to be denied in cases of customer negligence. If the customer’s password was hacked, stolen, or phished, they still have a valid claim under Regulation E regardless of whether or not the bank has chargeback rights under Visa rules.
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VISA and Reg E Error Resolution