60-Day Rule

The 60-day rule can be applied to claims in which recurring transactions are being disputed.

Regulation E diagram:

Cardholders may still have dispute rights on outdated transactions if the claim meets certain conditions. In order to apply the 60-day rule, we have to be able to show that subsequent errors could have been prevented if the member had notified us.
Know that the 60-day rule is applied at the card-level.

See the table below.

Regulation	Claim type	Rules
Regulation E	Non-fraud	The 60-Day Rule applies to Cancelled Recurring claims. For these claims, we can fire-off a chargeback or a stop payment. We cannot apply the 60-day rule in situations where we couldn't have done anything to prevent another issue from happening later on (example Wrong Amount Posted, Paid by Other Means).
Regulation E	Fraud	The recurring transaction that is on the statement where fraud first appeared, and recurring transactions that occurred in the following 60 days, are covered. Any recurring transactions that occurred after are the member's responsibility, however, we will attempt a chargeback if rights exist.
Regulation Z	Non-fraud	The member must notify us no later than 60 days after the statement date in which the first cancelled recurring transaction occurred. If the member doesn't report the activity within 60 days of the statement, they will be wholly responsible for the charges. That said, we will attempt a chargeback if rights exist.
Regulation Z	Fraud	The 60-day Rule does not apply.

Use the 60-day sheet to calculate which transactions are covered.

Regulation	Deny Scenario	Notes
Regulation E	Non-fraud (Cancelled Recurring)	Date of first transaction: Date of statement: Statement date + 60 = Transactions taking place after XX/XX/XXXX are being denied as out of time frame: (Transactions denied). All transactions taking place after (DATE) that do not have recovery rights will be denied as these transactions could have been avoided had the cardholder advised the financial institution within a reasonable timeframe.
Regulation E	Fraud	Date of first transaction: Date of statement: Statement date + 60 = Transactions taking place after XX/XX/XXXX are being denied as out of time frame: (Transactions denied). All transactions taking place after (DATE) that do not have recovery rights will be denied pursuant to § 1005.6(b)(3)
Regulation Z	Non-fraud	Date of first transaction: Date of statement: Statement date + 60 = (Transaction ID) All transactions reported after (DATE) that do not have recovery rights will be denied.
Regulation Z	Fraud	The 60-day Rule does not apply, therefore, no notes required for the 60-day Rule. Notes will be made based on the fraud investigation.

Scenario	Next steps
The recurring charges are under limit.	Pay the transactions that are covered by the 60-day rule and deny the charges that aren't covered using the Past Timeframe reason.
The recurring charges are over limit.	Pay the transactions that are covered by the 60-day rule and grant provisional credit to the other transactions that have chargeback rights. Deny charges that don't have rights.
The member is disputing recurring charges from the same merchant on two separate cards and two individual claims.	Apply the 60-day rule to each claim independently of each other.
The first recurring charge is over a year old.	Anything over a year old is not covered.
The dispute reason is not covered by regulation.	Were there transactions reported more than 60 days after the statement date on which the first disputed transaction appears? If yes, review for chargeback rights. If there are chargeback rights, issue PC and process recovery. If the transaction has no chargeback rights, you may deny for being reported Past Timeframe.