We are considering implementing a $5.00 replacement fee for debit cards that are replaced outside of the normal re-issue process. The question came up on whether or not a customer that experiences fraud should be included in that charge. At first we thought that they should not, but we also have some customers that seem to have repeat claims of fraud, usually due to their own bad or risky behaviors.

While we have limits when we would eventually cut someone off from even having a debit card if they show that they are unable to handle it responsibly, we definitely give folks quite a bit of leeway, meaning it can take a bit for us to get to that point. One thought was that this could encourage those folks to be more careful, or at least help offset the cost of the cards.

We also don't want folks to claim something as unauthorized as a way of avoiding the replacement fee.

Whatever we land on, we want to make sure it is something we can practice consistently and fairly. Wondering if anyone else has experience with this and which way you went? Is it working? What problems are you having to address? Would you do it differently if you could?

Anytime there is fraud or unauthorized activity, the bank should replace the card. This is as valuable to protect the bank as it is the customer. I would not suggest charging them in that case, as it is a fee that they could not avoid.

You really need to work on this: we also have some customers that seem to have repeat claims of fraud, usually due to their own bad or risky behaviors.

The credits unions I've worked for have a Replacement Card fee. None assessed it when the replacement was due to fraud. However if a member repeatedly claimed fraud (claims on a almost quarterly basis) the they wouldn't get a new card. That was justified by the reason that they failed to secure their access device.

None of the banks where I've worked have ever charged a replacement card fee for fraud-related replacements.

Thank you for all the feedback! It helps to know what others are doing.

Similar to Paul, none of the FI's I've ever worked for assess a fee for a replacement card for fraud or normal replacement (due to expiration), but if a client continued to claim fraud/dispute transactions due to their own poor card management/lack of securing their card, we would refuse to reissue, as the card is a perk/benefit not something that's owed to them.

We waive the initial replacement card fee. Subsequent replacement cards do have a fee.

In cases of fraud, we will provide a new card mailed by our processor for no fee, but if the member wants an instant issue, there is a fee.