Amy K: InfoSight Highlight
The VISA and MasterCard rules govern transactions by VISA and MasterCard debit and credit cardholders. Generally, the VISA and MasterCard rules are more favorable to cardholders than Regulation E rules that govern electronic funds transfers . A credit union with such cards must follow the more favorable rules when dealing with cardholding members. In fact, rules for VISA and for MasterCard have required card-issuing credit unions to make some operating adjustments in order to comply.
First, VISA and MasterCard deviate from Regulation E with regard to consumer liability. VISA and MasterCard rules state that a consumer generally has zero liability for unauthorized use of his/her debit or credit card, if the consumer reports the loss of the card within a certain period of time.
Second, VISA's charge-back rules govern liability in debit and credit card online fraud situations. MasterCard has similar charge-back rules. The rules apply to unauthorized online transactions, and will not affect any other VISA charge-back rights. However, they require card-issuing credit unions to have specific operating procedures to control online fraud losses.
Visit the VISA and MasterCard Rules topic on the ACH/Electronic Payments channel of InfoSight to learn how these rules affect your credit union and what your credit union should do to comply with these rules.
Also, the Additional Resources section of this page includes a link to the Frequently Asked Questions page which provides answers to questions such as these:
- What should be done if the credit union’s card processor says that it will not be able to institute mass or auto enrollment for all of its cardholders?
- How will these online security programs be helpful to credit union members who don't shop online?
- Does the merchant have to participate in the Verified by VISA program in order for a transaction to be considered an attempted authentication?
Review the information to help your credit union stay in compliance.
Source: InfoSight Compliance eNewsletter
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Please do not hesitate to contact Amy Kleinschmit at email@example.com or 701.214.9721 with any questions or concerns.