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Reg E Claim with Double Cash Payment

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Question: 
If a customer claims he paid cash and the merchant debited the card (double billed), and the customer doesn't have a receipt that cash was paid, can we just decline this due to lack of proof, or do we have to give him provisional credit and submit the dispute to the merchant to see if he received credit twice?
Answer: 

If the consumer paid cash, why would he have given the merchant a debit card in the first place? This makes me suspicious. If the debit card payment was initially authorized, and then the customer wanted it backed off so cash could be used instead, the payment was still authorized. Lack of a refund when one was promised one may be a claim, but the initial calim would be denied, based on the limited information here.

Provisional credit is only given if you go beyond the initial period, generally ten business days. If you do have a claim and haven’t resolved it by then, provisional credit is required, assuming other conditions don’t preclude it. Hopefully you could inquire with the merchant as to the refund status within the ten business day period. A consumer should know that these refunds are not instantaneous from the merchant, so again, this makes me suspicious of the claim in general.

First published on BankersOnline.com 8/23/10

First published on 08/23/2010

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