Visa has made a slight change to its zero liability wording which increases the standard of care required by cardholders to meet the zero liability exception. The previous standard stated that a cardholder would not be liable for any transactions made by a lost or stolen Visa card unless the cardholder had been grossly negligent or engaged in fraud. In the new zero liability statement, Visa has changed the wording from grossly negligent to negligent. Although Visa does not define the difference between grossly negligent and negligent, it is clearly less beneficial to the customer.
For banks using Visa debit and credit cards, it is recommended that existing customers are notified of the change in terms. It is also recommended that banks update any disclosures that may contain the zero liability language such as the EFT initial disclosure, cardholder agreement, and account terms and conditions.
For banks using Visa debit and credit cards, it is recommended that existing customers are notified of the change in terms. It is also recommended that banks update any disclosures that may contain the zero liability language such as the EFT initial disclosure, cardholder agreement, and account terms and conditions.
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