Answer:
I'd be concerned about raising confusion with your customers. First you give them provisional credit. Then you pull the provisional credit. Will your customers (and your staff) understand that the investigation isn't complete, and that the customer may later get the money back?
A second, important question is whether Visa rules will permit you to condition the provisional credit upon receipt of the written confirmation of the error claim. If Visa doesn't include that condition in its rules, you can't impose it on your customer if the error claim happens to fall under the Visa rules.
If you are not able to condition provisional credit on Visa-controlled error claims, you could be setting up two sets of rules -- reverse the provisional credit if no written confirmation is received on non-Visa claims; don't reverse it on Visa claims. Given the confusion in many shops over which claims are subject to the Visa rules and which are not, I think you could be setting staff up for problems.
First published on BankersOnline.com 8/28/06
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