Debit Card Disclosures

Answered by:

Question:

We are preparing to offer a new product, the Debit Card, to customers. What disclosures are required?

Answer:

Answer by David Dickinson:You need to provide a new EFT disclosure to all consumer customers that receive the debit card.

Answer:

Answer by John Burnett:If you already issue ATM cards, much of what you would include in an EFT disclosure for debit cards is already there, but you will need to expand on your description of what you can do with the debit card (make purchases, with or without cash back, for example), include your limits on the use of the card, tweak your section on customer liability for unauthorized use to reflect any "zero liability" provision of Visa or MasterCard (and, if you are issuing Visa debit cards, the 5 day provisional credit rule). You can either integrate the debit card disclosures into your routine EFT disclosure document or create a separate debit card disclosure sheet that you deliver (in addition to regular EFT disclosures) only to consumers who receive the debit card.

First published on BankersOnline.com 11/13/06