Mastercard Disputes

Manager at a bank ($10.3BUSA)
Once a claim is declined under Reg. E because it is not an "error" under the regulatory definition, what steps are other banks taking under Mastercard rules? Are other banks contacting the merchant with the client, filing a retrieval request, paying the claim? Can anyone point to this instruction in the Mastercard Rules?

    P2P and Reg E

    CFO at a credit_union ($126MUSA)
    We are getting ready to offer P2P to our members. We are looking at the risk associated and have come across a question related to sending money to the wrong person. In the product we are using the member can enter a phone number or email address of the person they wish to send money to. If they enter the wrong phone number or email address what are our requirements under Reg E? We will not have the option to recall the money after it is sent.

      New Debit Card

      Employee at a bank ($66MUSA)
      What is your institution requirements when a new debit card is issued? 
      • Sign Card Order Form
      • Ask them to Opt in or Opt out of Reg E
      • Provided copy of Electronic Funds Transfer Disclosure
      At what point do you not have the customer sign a new card order form? (lost/stolen, broken etc) 
      We are trying to enhance our process and making sure that we are providing and collecting the correct information from the customer, but also don't want to have a long process for our staff if its not needed. 

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            Overdraft Privilege: Available vs General Ledger method regarding one-time debit card and ATM transactions

            Employee at a bank ($326MUSA)
            I read the FDIC's June 2019 Consumer Compliance Supervisory Highlights regarding some banks that have been scrutinized by examiners for overcharging OD fees if they use the available balance method vs the general balance method for authorizing debit card transactions. We use the current ledger balance for posting transactions and the current available balance for authorizing debit card transactions. Per this article we can mitigate our risk by system settings to prevent assessing more OD fees by using the available balance method and clarifying our disclosures. 

            We have validated our system will not charge an OD Fee if the transaction is authorized on good funds, and we feel we have mitigated our risk in this area. We use the model A-9 form for our Reg E opt-in consent form, and previously believed using the model form was sufficient; however, it does not get into the details of when an OD fee could be charged based on available vs ledger balance and neither do our other disclosures. I did find a lawsuit based on the language being too general such as "An overdraft occurs when you do not have enough money...", which comes straight from A-9. I'm hesitant to add to or change model forms, but I'm curious if in this case, it may protect us from additional scrutiny. 

            Would you recommend adding more specific language to our Reg E Opt-in Consent form to clearly describe when OD fees will be charged? Or do you think we've done enough to mitigate our risk by the documentation I have to support that our system is set up to not charge an OD fee when a transaction was authorized with adequate funds and now the account has inadequate funds?  Have any FDIC banks experienced any issues with examiners on this topic? 

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