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Reg E/Visa Rules Chargebacks Rights & Receipts

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Question: 
A customer completed a dispute form for an unauthorized Visa transaction. Per the customer, she paid cash and only provided the merchant her debit card number as backup. The card was not supposed to be charged. I received a report back from the chargeback center stating that there were no chargeback rights unless receipts were submitted and an explanation of any differences in amount. I asked for a document retrieval to see if the customer had signed a contract. I was contacted today and told that it was a card not present transaction so there were no documents to retrieve. I cannot get the customer to contact me regarding receipts paid. What are my options under both Reg E and Visa rules?
Answer: 

The customer has satisfied their requirement under Reg E to notify the institution of an error. The inability to file a chargeback with VISA does not relieve the institution of its obligation to investigate or provide provisional credit. You cannot deny a claim simply because a customer does not provide additional documentation. Since you are unable to file a chargeback, your options are reduced to honoring the claim or contacting the merchant directly in an attempt to obtain documentation to aid in your investigation.

First published on BankersOnline.com 9/17/12.

First published on 09/17/2012

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