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Reg E, MasterCard Zero Liability & Bus Debit Cards

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Can you please clarify the bank's responsibility and liability regarding Reg E compliance and MasterCard Zero liability related to business debit cards?

Regulation E does not apply to the use of business debit cards. However, per your contract with MasterCard, you are obliged to provide certain protections to the customer whose business MasterCards may have been used without authorization.

The definition of "unauthorized" is a little narrower for business debit transactions. Typically, if a transaction is completed by an individual that the business arranged to provide a card, the transaction can't be disclaimed by the business just because the employee made some personal purchases. Those transactions will be matters between the business and the employee. Also, MasterCard, I believe, does not cover ATM transactions or PINned POS debits.

First published on 8/11/08

First published on 08/11/2008

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