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Unauthorized Transaction and Provisional Credit

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Question: 
A customer notified us four days after debit card (Mastercard) was stolen. Unauthorized transaction appeared two days after theft and in his statement he identifies the person he thinks stole the card. Do I give him provisional credit less $50.00?
Answer: 

That depends on the nature of the unauthorized transaction. MasterCard has a zero liability program for unauthorized transactions, but ATM transactions and transactions that didn't get routed through MasterCard (PINned debit in most cases) aren't included. If the zero liability provision applies, you don't get to subtract the $50. If it doesn't, you do.

First published on BankersOnline.com 12/5/11

First published on 12/05/2011

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