Unauthorized and Incorrect Electronic Funds Transfer

Merchants Bank employs many different security enhancements to protect our customers from unauthorized (fraudulent) or incorrect transactions on online banking, debit card transactions, and even on check transactions. The best way to protect yourself is to be very proactive and vigilant about checking your account to identify unauthorized or incorrect transactions. Whenever you see a transaction that you don’t recognize on your statement, you should contact your local Merchants Bank branch or the Merchants Bank Customer Call Center at 800-322-5222. The information below deals specifically with Debit Card Transactions.

There are basically two types of debit card transactions that you may question on your statement. One is an unauthorized electronic funds transfer transactions, which means that someone else used your card without your authority and you received no benefit for that transaction. In short, it is a fraudulent transaction.

Example: You notice a gas station charge on your account for a state you have never been to.

The other is a transaction you may want to dispute, even though it is not fraudulent or unauthorized. This transaction is called an incorrect transaction.   

Example: You used your debit card to reserve a hotel room, but cancelled the hotel and got charged anyway.

There are several differences between unauthorized transactions and incorrect transactions. One important difference is that with an incorrect transaction, Merchants Bank is submitting a dispute between you and the merchant to MasterCard on your behalf. MasterCard makes the final determination regarding whether or not we can get the money back from the merchant. If we are able to get the money from the merchant, you will be reimbursed. However, if we cannot get the money back, you will not be reimbursed.

Unauthorized Electronic Funds Transfer (Fraudulent) Transactions

Remember that an unauthorized fraudulent transaction only occurs when you have no knowledge of who used your card, you never authorized anyone to use your card, and you received no benefit from the transaction. You will be required to sign and submit the Unauthorized Electronic Funds Transfer Transaction form to certify to that fact.  

Important to remember: MasterCard provides a zero liability clause for any fraudulent use of your card without your knowledge. However, you must notify us as soon as you discover an unauthorized transaction. If you notify us within the first two days after discovering the transaction, you will limit your total liability to $50.00. Failure to notify us within two business days after you discover the transaction can result in you being liable for up to $500. If you don’t notify us within 60 days of when the fraudulent transaction appeared on your statement, you are liable for the full amount of the transaction. 

In order to process your unauthorized electronic funds transfer transaction claim, we need the Fraudulent Unauthorized Electronic Funds Transfer Transaction Form filled out completely and accurately.

We will begin processing your claim as soon as you notify us. You may notify us by phone, fax, in person, by secure form submission within online banking.  

Merchants Bank has ten business days to process your claim. We may take up to 90 days.  However, if we cannot finish the investigation within 10 days, we will provisionally credit your account the amount of the claim less any possible liability. If your claim is determined to be invalid you must return the provisional credit and we will debit your account for the entire amount of the provisional credit within three business days of completing our investigation. You will be notified of the results in writing once our investigation is complete.

Incorrect Electronic Funds Transfer Transaction

Remember that an incorrect transaction is when you purchased a good or service and for some reason (cancellation, unhappy with merchandise, double charged) you don’t feel you should pay. For every disputed transaction, you should first go to the merchant involved to try and resolve it. Please document all attempts of your own to resolve the issue. If you cannot resolve it that way, we are happy to try and resolve it for you.       

Important to remember: You must notify us as soon as you discover an incorrect transaction. If you notify us within the first two days after discovering the transaction, you will limit your total liability to $50.00. Failure to notify us within two business days after you discover the transaction can result in you being liable for up to $500. If you don’t notify us within 60 days of when the fraudulent transaction appeared on your statement, you are liable for the full amount of the transaction. 

In order to process your incorrect transaction claim, we need the Incorrect Electronic Funds Transfer Transaction Form filled out completely and accurately as well as any documentation regarding your attempt to resolve the dispute with the merchant yourself. (For example: Receipts, communications to/from the merchant, etc)

You are responsible for the first $50 of any disputed transaction, so if you are disputing less than $50, we will not issue provisional credit. However, we can still submit your claim to MasterCard to see if the merchant must reimburse you. 

We will begin processing your claim as soon as you notify us. You may notify us by phone, fax, in person, or by secure form submission within online banking.  

Merchants Bank has ten business days to process your claim. We may take up to 90 days. However, if we cannot finish the investigation within 10 days, we will provisionally credit your account the amount of the claim less any possible liability. If your claim is determined to be invalid you must return the provisional credit and we will debit your account for the entire amount of the provisional credit within three business days of completing our investigation. You will be notified of the results in writing once our investigation is complete.