The global pandemic fueled an unprecedented increase in electronic payments and fraudulent claims. The resulting growth in disputed transactions has driven institutions to turn to process automation to reduce the compliance risk, cost and inefficiency of manual Reg E processes.

As the use of debit cards and peer-to-peer payments continues to rise, fraudulent transactions are increasing as well. For financial institutions (FIs), manual handling of payment disputes have become more time-consuming and higher in risk, with increased scrutiny from internal compliance teams and external auditors.

The rising number of disputes is problematic, mostly because of the resources required to ensure compliance with Regulation E using manual processes. FIs report that one dispute can take up to an hour to resolve, so a typical month’s worth of 30 disputes can require over 30 hours to process.

Dispute resolution can be broken down into the following five time-consuming activities:

  1. Completing a paper-based dispute form with customer information, transaction record and customer statement.
  2. Calculating and posting adjustments to customers accounts.
  3. Generating timely customer notices and working with card processors to recover funds.
  4. Compliance oversight to ensure the accuracy and timelines of notices and adjustments keyed in by
    hand.
  5. Generating monthly reports for management.

There’s no denying that disputes are very frustrating for both FIs and customers. Customers want an end-to-end digital experience and timely resolution. Banks and credit unions don’t want to hires and train more staff. The time-intensive manual processes used by most FIs make accurately handling a large volume of disputes very difficult. Without an end-to-end automated solution, institutions operate inefficiently and customers walk away dissatisfied.

With FINBOA's Regulation E Dispute Tracking solution, claim processing is simplified.

The Reg E process no longer requires spreadsheets or re-keying and provides automatic reminders and alerts with customer letter generation, including eSign capability. The digital process continues by automating the provisional credit calculations, posting adjustments to the correct accounts and
generating required customer notices.

In short, FINBOA provides an end-to-end process automation optimized for Reg E and other aspects of compliance. FINBOA eliminates the need to use multiple systems and manual steps, thereby increasing efficiency and keeping customers happy.

 

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