Chargeback on Prepaid Card

WelshRarebit

Hi,


Just after a bit of clarification. The company I work for issue prepaid Mastercards to contract staff for travel expenses. One of the cards has had over EUR1200.00 in cash withdrawn from it from an ATM in Indonesia. The card holder has never been to Indonesia. We contacted our cards provider to raise a chargeback for the fraudulent transactions.


However they have comeback to us to say they are unable to raise a chargeback with MasterCard as Indonesia does not participate in the CHIP liability program - what ever that is. More so they also went on to say that as the transactions happened over a bank holiday weekend their fraud protection systems were unable to prevent the items going through until the next working day at which point the transactions had been posted and too late to block.


Sounds like a load of old b******s to me but just wondering if any one out there has any more knowledge on the CHIP liability programme.


Thanks

grumbler

IMO, this isn't a case for a chargeback.

This is fraud that the card provider has to cover from his pocket. That's why they do their best to fob you off - like even very reputable banks often do in such cases. Stick to your guns and take the case to the regulator if needed.

The fact that the cardholder has not been to Indonesia is irrelevant, but the fact that it wasn't a chip&pin transaction is important as the chip is reportedly impossible to clone, i.e. it was a cloned card.

boo_star

grumbler wrote: »

IMO, this isn't a case for a chargeback.

This is fraud that the card provider has to cover from his pocket. That's why they do their best to fob you off - like even very reputable banks often do in such cases. Stick to your guns and take the case to the regulator if needed.

The fact that the cardholder has not been to Indonesia is irrelevant, but the fact that it wasn't a chip&pin transaction is important as the chip is reportedly impossible to clone, i.e. it was a cloned card.

If they don't use chip and pin it could easily be a genuine transaction (as far as the bank is concerned.)

I'm not sure the fraud liability lies with the bank here, given that it's a business account.

grumbler

boo_star wrote: »

If they don't use chip and pin it could easily be a genuine transaction (as far as the bank is concerned.)

Well, at least they cannot insist that it was a genuine card.