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Visa Logo on Debit Cards Equals Zero Liability?

Question: 
Our debit cards have the Visa logo. On the Visa website they advertise zero liability. Does this mean our customers are excluded from the $50.00 and $500.00 liability?
Answer: 

Answer from David:Yes, if certain conditions are met. You must comply with Visa's liability requirements if you are going to include their logo on your debit cards. Contact your service provider for more information.

Answer: 

Answer from Andy:The key in David's answer is if certain conditions are met. You should be familiar with these as they include a gross negligence exception, or if the consumer was involved in fraud. Reduced customer liability does not apply to ATM transactions, transactions using a PIN, not processed by VISA and possibly commercial cards. You should verify these exceptions and stipulations, however.

You also need to be aware that your Reg E liability disclosure should accurately denote that zero liability can apply. If you state a minimum $50 liability, you are not accurately disclosing the contract terms to your consumer. Also, there are five business days to complete the investigation unless provisional credit is given. Reg. E allows ten business days.

First published on BankersOnline.com 6/15/09

First published on 06/15/2009

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