Reg E Signatures for Debit Card Disputes

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Question:

Regarding debit card disputes and Reg E, if Reg E does not require signatures for debit card disputes, but MasterCard and VISA do, how do we best handle this conflict without a violation?

Answer:

Under Reg E you can ask for, but not require, a signed letter from your cardholder so that you can file a chargeback. In the event that you are unable to obtain a signature from your cardholder, but still must investigate their claim under Reg E, your remaining options are, a) pay the claim, b) attempt to contact the merchant directly to obtain information for your investigation, or c) file a retrieval request with VISA/MasterCard. Retrieval requests do not require a cardholder signature but will compel the merchant to produce documentation regarding the authorization.

First published on BankersOnline.com 12/17/12.