BANK: Community bank in Houston, Texas
PROBLEM: Tracking debit card disputes became a paper-based disaster.
SOLUTION: Automate the debit card dispute process.
On average the Home Depot breach created over 200 disputes for each community bank over 3-6 months. The question is; how prepared are you for another breach?
Employees at a Texas based community bank used to deal with about 3 to 10 customer transaction debit and credit card disputes per week. Last year they became inundated with over 400 claims of fraudulent charges by bank customers.
A small business had been hacked and a large amount of debit card numbers were stolen. They also cloned cards and bought expensive electronics which was later converted into cash by selling them online.
Bank staff quickly became overwhelmed by the amount of manual and paper based disputes that had to be created and tracked in Excel spreadsheets. More staff was added to the team to assist with the surge in volume. However, they were not familiar with Reg-E dispute compliance rules. Generating provisional credit letters was a painstakingly slow processes. Final resolution notices required even more time to ensure that credits were being properly applied to accounts to ensure bank losses were minimized. Customer complaints increased due to insufficient and inaccurate communication. In one case a customer left the bank due to inaccurate provisional credit statement.
The bank called FINBOA™ to automate the bank’s dispute process and streamline Reg-E Compliance. In addition, the bank wanted to understand the losses around their debit card business.
The entire roll-out took about 2 weeks to migrate data from the Excel spreadsheets, reconcile the disputes, customize alerts, customize documents and train staff on the software functionality.
Now, remote offices can assist customers in completing disputes and getting customer acknowledgement. They can also email an electronic dispute submission template to the customer. Banks can also choose to integrate with their online banking so customers can submit disputes from their online banking system.
Customers are able to start disputes through a wizard like process. At the end customer can e-Sign the dispute and submit to the bank. Bank staff can then take the dispute and create necessary documents for Visa, create Provisional Credit Letters and await results back from merchants. Once results are received the bank can send a final resolution notice to the customer via FINBOA’s unique 2-Click Batch Process system.
To ensure Reg-E compliance, Bank staff is alerted daily for approaching deadlines. With the ability to customize additional alerts, Bank staff can expand the alerting system to include internal bank procedures.
FINBOA™ is headquartered out of Houston Texas. FINBOA™ helps community banks automate their compliance and regulatory needs. FINBOA™ delivers cloud based solutions that is accessible to both office and mobile users. By building a solution that conforms to both the desktop and mobile devices, FINBOA™ creates significant value for banks through the single platform solution.