Do We Follow Visa Rules or Reg E?

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Question:

Reg E allows a $50 maximum charge to consumers who do not notify the bank within two days of lost/stolen debit cards. The VISA operating regulations say that card holder liability is $0 for unauthorized transactions. Which do we follow?

Answer:

If it's a VISA processed transaction, you must follow the VISA rules ($0 liability). If the transaction was not processed by VISA (an ATM transaction), then you can apply the $50 liability.

First published on BankersOnline.com 9/10/07