We have a customer who disputed two ATM withdrawals stating that she did not receive cash from the terminal. We issued provisional credit and sent a chargeback adjustment to the terminal owners. While waiting for a response from the terminal owner, we had to make the customer’s provisional final due to the Reg E timeframes. She received a letter from us stating that her provisional credit is now final.

After that letter was issued to the customer, we received responses from the terminal owners showing that cash was dispensed for those disputed transactions.

I know that we cannot reverse that final credit under Reg E since the investigation was closed with finalization of credit. However, we know that the customer did receive cash for those transactions, and she has now been unjustly enriched (we have the evidence, which sadly came too late). This has clearly exited the Reg E world, but what are our options for getting the money back (if any exist)?

Thanks in advance for any help!

Just curious, but how does one prove that "cash was dispensed for those disputed transactions". They have video evidence?

Operationally, banks review electronic journals which identify whether or not there are dispense errors. Debiting an account for a duplicate credit where provisional credit is final and a merchant issued a refund is reversing unjust enrichment. Once a claim is closed, you cannot reverse final credit. Since you only have 45 days for an ATM claim, next time make sure that the chargeback is processed through your PIN network more quickly. You have no recourse to debit the account.

No, unfortunately we do not have video evidence, just the electronic logs.

Brian, thanks so much for the response. My EFT manager is frustrated since we found out too late that this customer was taking us for a ride on the Reg E train. I didn't think we had any other recourse to retrieve the funds, but I wasn't 100% there wasn't something outside of Reg E. I did tell her that there is always the option of closing out the customer relationship and asking them not to come back.

I would not call it an "option"

Indeed! Thanks again

An additional thought -- It has been a long while since I was involved in inter-bank ATM error claims and adjustments. But when I was, the network operating rules had strict timing requirements for an ATM owner to respond to a claim like the one you placed, and if the ATM owner missed a deadline, and the card-issuing bank sustained a loss because it had to pay its customer, the card-issuer could file a rules violation claim that would force the ATM issuer to pay up.

I imagine that today's ATM networks are just too big and too busy for such minute details, but I thought I'd throw it out there just in case your network has anything similar.