Tuesday, 2 July 2019

Questions (200)

Michael McGrath


200. Deputy Michael McGrath asked the Minister for Finance the number and value of charge-back refunds requested by customers of regulated entities; the amount of refunds issued by those entities in respect of transactions not authorised by the cardholder (details supplied); the policy in terms of the person or body responsible for the disputed transaction; the role of the debit and credit card provider in that regard; the timeframes within which customers must seek a charge-back for a disputed transaction; the views of the Central Bank on the issue of disputed transactions; and if he will make a statement on the matter. [27867/19]

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Written answers (Question to Finance)

I am informed by the Central Bank that it does not collect the data on these in the way the Deputy requests. The term charge-back can cover many circumstances. Requests for refunds may be handled by the card issuer in accordance with rules established by industry.

It may be helpful, however, to outline the legal position in respect of unauthorised and incorrectly executed payments. The European Union (Payment Services) Regulations 2018 (S.I. No. 6 of 2018), transposed the Payment Services Directive (“PSD2”) into Irish law and establish common rules for certain types of electronic payments, including card payments. Under these rules, a payment service user is entitled to rectification of an unauthorised or incorrectly executed payment transaction from a payment service provider where the payment service user notifies the payment service provider. The payment service user must make this notification without undue delay, and no later than 13 months after the debit date. The payer's payment service provider must refund the amount of any unauthorised payment transaction immediately and in any event not later than the end of the following business day, except where fraud is suspected.

I would advise any person who is not satisfied with the actions of a card issuer in respect of an unauthorised or incorrectly executed payment transaction to make a complaint under the company's internal complaint resolution process. If they are not satisfied with the outcome of the complaint, they can make a complaint to the independent Financial Services and Pensions Ombudsman. Investigations by the Ombudsman are free of charge to the complainant.