IBA Compliance Connection

Your go to source for compliance!

Topic: Payment Cards

How can we explain the practice of authorization holds on debit cards to irate customers?

Aug 5, 2011

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The Federal Reserve has an explanation of the practice of authorization holds (74 Fed. Reg. 5212, 5228–29 (January 29, 2009)): “When a consumer uses a debit card to make a purchase, a block, or hold, may be placed on funds in the consumer’s account to ensure that the consumer has sufficient funds in his or…
Can we issue a debit card to an individual who is an authorized signer of a personal account, but not a joint account holder? Also, does it make a difference if the account is a personal account or a business account?

Oct 5, 2007

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Yes, you can issue a debit card to an authorized signor of a personal account, provided that doing so is not inconsistent with your bank’s policies and procedures. Since the person already has access to the funds in the account as an authorized signor, the debit card is merely another means for him or her…