We are looking to increase our POS limit for debit cards. I've looked under Reg E for clarification on disclosing the increase to customers. I can't find anything specific in this regards. I only find info. on initial disclosures and Change in Terms. Does anyone know if we are required to notify customers of the increase POS limit?

There's a school of thought that says that increasing the POS limit could be adverse to the customer. It's a stretch, I think, unless you ever get into a claim that the customer lost money on unauthorized EFTs due partially to the increased limit.

I recommend you notify your customers, but do so in a positive (can you hear the Marketing Stampede) way. There's no advance notice requirement, since this isn't truly a change in terms notice. But you might also consider including information on how a customer might lower the POS or cash limit to reduce risk.

I worked for a bank that did this and they 'notified' customers by including a statement stuffer that said something to the effect " Effective XX-XX-XX, daily point of sale transaction limit is $xxxx.00. If you do not want to accept the increase, please contact our customer service representative" Of course, we got a lot of calls in general but it was a great opportunity to see who read their statements.

Thanks for the input. It helps to know I was on the correct track with this.

The calls can also be opportunities to better cement your customer relationships.