Visa Expected to Ease Debit Card Policy

Visa USA is expected today to announce that it will match rival MasterCard’s new policy of limiting customer liability for unauthorized use of debit cards to $50, banking industry sources said. Legally, debit card holders can be held responsible for up to $500 or more if they do not report the loss within two business days of learning of the fraudulent use. But to ensure the burgeoning use of debit cards, which allow merchants to deduct money directly from a customer’s bank account by computer, MasterCard last month announced a $50 liability cap for 16.5 million debit cards bearing its logo. Visa, which counts about 54 million debit cards with its logo, is also expected to require that the 4,500 member banks offering Visa debit cards give provisional credit to customers who file unauthorized-use claims within two days, sources said. That would protect customers from having to go without the lost funds while the bank investigates their claims. Visa spokespersons declined to comment. Last week, Bank of America announced that it will waive all customer liability for unauthorized debit card use. On Tuesday, Home Savings of America did likewise.