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Corporate VISA Cards - Non-fraud Disputes

Answered by: 
John Burnett

Question: 
Our credit vendor does not place disputed amounts on hold for corporate VISA cards. They continue to be included in the balance amount due and also are subject to finance charges. This is only for non-fraud disputes. This is contrary to consumer VISA cards where the disputed amount is removed from the balance and then the amount due is calculated off of the remaining balance. I am not sure which rule or regulation allows or does not allow for this. Is it safe to assume that because corporations are not protected by Reg E that this may be why non-fraud disputes are treated differently for corporations?
Answer: 

To begin, you are asking about credit cards, so your reference should be to Regulation Z, not Regulation E. Under Regulation Z, business credit cards are covered only by subsections 226.12(a) on issuance of cards and 226.12(b) on unauthorized transactions. The section (226.13) on billing errors does not apply to business cards.

First published on BankersOnline.com 10/29/07

First published on 10/29/2007

Filed under: 
Technology
Filed under technology as: 
Credit Cards
IT

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