Fraud using Visa Secure 3-D

Answered by:

Question:

Our processor says we don’t have chargeback rights since a purchase was made using Visa Secure 3-D. Can we deny the claim since the cardholder’s password was used?

Answer:

Reg E does not permit claims to be denied in cases of customer negligence. If the customer’s Secure 3-D password was hacked, stolen, or phished, they still have a valid claim under Reg E regardless of whether or not the Bank has chargeback rights.

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