View Single Post
Old 09-29-2010, 02:28 PM  
AaronM
Too lazy to set a custom title
 
AaronM's Avatar
 
Industry Role:
Join Date: Oct 2001
Location: ┌∩┐ ◣_◢ ┌∩┐
Posts: 46,909
Strange to see this considering that Federal Law regulates the banking industry and unlike some people have claimed, they do have limitations for this sort of thing.

Here are the facts:

In 1978 the U.S. Congress passed the Electronic Funds Transfer Act which ties in nicely to the Truth in Lending Act and is known in the banking industry as "Regulation Z." Although these laws were passed to protect consumer rights, they also contribute to defining the rights of merchants by limiting the time a customer has to file a chargeback.

This regulation puts a 60 day limit on claims from the date the statement is issued. The card issuing bank then has 45 days to resolve the matter.

Under Electronic Funds Transfer we see the mention of "payment cards" which then links to this page defining payment cards as:

# 1 Types

* 1.1 Credit card
* 1.2 Debit card
* 1.3 Charge card
* 1.4 Stored-value card
* 1.5 Fleet card
* 1.6 Other

So basically, Reg Z also assists in protecting merchants against any chargebacks that are attempted after the 60 day post statement limitations are spent. If a bank has pushed chargebacks beyond this then they are not following Federal Law.

I'd consider taking both the customer and the bank to court.

Last edited by AaronM; 09-29-2010 at 02:32 PM..
AaronM is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote