Angry & Confused Over Reg E

I do not mean to sound like such a dummy, but I am so confused about Reg E compliance. I understand that we are required to investigate all card transaction disputes, but does Reg E require us to give a provisional credit on all claims? I am particularly disturbed that the bank, due to the provisional credit requirement of Reg E, ends up writing off claims for which we cannot recoup any losses. Since customer initiated transactions are not considered to be "unauthorized" by the processor and we cannot enter a valid dispute, we will always have to absorb the loss to comply with Reg E. It does not seem fair.