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MasterCard Customer Negligence-Reg E

Question: 
Customer has not lost or had his physical card stolen. He had 4 unauthorized transactions happened Dec. 5 $190.79, Dec. 13th $287.80, Dec. 22nd $205.60 and Dec. 26 $235.60. He noticed them on Jan.29th and reported them to us Jan.30th. Yes, he did come into the bank on Jan.30th and stated he noticed on the 29th which is within the 2 day period. But, we show that he logged onto his online banking 178 times between Dec. 5th and Dec. 30th and he did not report any of the activity. He logged in successfully from at least 3 different ip addresses and all log-ins were within times he should have noticed and reported. Does this not fall under MasterCard customer negligence and what should his liability be.
Answer: 

by Randy Carey: Logging into on-line banking has no impact on the customer's liability.

Answer: 

by David Dickinson: I agree with Randy. You're assuming it was your customer that logged in. It could have been the criminal. You're also assuming that by logging in, he "should have noticed and reported." Those are not fair assumptions (although ideal) and, as Ready stated, have no impact on his liability.

First published on 04/15/2018

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