Reason Code F24: No Card Member Authorization

How to Handle Amex Reason Code F24 Chargebacks

American Express breaks down the acceptable causes for a customer to dispute a credit card transaction in their dispute guidelines. This is done for the sake of simplicity and standardization. 

Each chargeback trigger has a designated “reason code.” Amex can then assign the appropriate code to each case to show the given reason for the chargeback.

Learn more about Amex reason codes

Today, we’re looking at one reason code in particular — F24 — and exploring the causes, timeframes, fees, and other specifics. We’ll also explore what you can do to prevent these chargebacks from happening.

What is American Express Reason Code F24?

American Express chargeback reason code F24 is “No Card Member Authorization.” This reason code is used to explain that, like the title implies, you submitted a transaction to the bank for processing. However, you the cardholder did not give their authorization to charge their account.

This can happen for a few different reasons. For example, the person who made the purchase in question might’ve been an impostor; a scammer might use stolen cardholder information to make a purchase on your site. Then, when the buyer noticed the purchase, they file a chargeback.

In the example above, the cardholder is the victim of fraud. However, you are the one who gets stuck holding the bag, because you failed to detect the unauthorized card use

What Caused This Dispute?

Amex Chargeback Reason Code F24 is primarily issued when a cardholder claims a transaction was not authorized To demonstrate, this scenario can arise if:

How to Respond to Amex Reason Code F24 Chargebacks

So, what happens if you can prove that your customer did, in fact, authorize the purchase being challenged?

Naturally, if you get an Amex F24 chargeback, you’ll need to resolve the issue asap. But, let’s say you have a strong suspicion that the chargeback was filed without a valid reason for a dispute. If that’s the case, you should file a dispute response. This is done through a process called representment.

Representment means you literally “re-present” the charge to the bank. It’s the process developed specifically to let you fight invalid chargeback claims.

You can’t just resubmit the same transaction data, though; like they say “insanity is doing the same thing over and over again and expecting different results.” This time, you have to provide evidence to the card issuer (in this case, American Express) that the transaction was legit, and that it was in line with all the card issuer's policies.

This is crucial though: remember the time limit.

There’s a strict time limit to consider here. You have just 20 days in which to submit your response to American Express. However, this time frame also includes the time it took for your acquirer to get the dispute notification to you, as well as time spent by the acquirer reviewing and submitting your case. In a real sense, you probably only have five days or less to prepare and submit your response.

Acceptable Evidence for Amex Reason Code F24 Responses

Think you’ve got a good case? Good. That means you can re-represent the transaction… under the condition that you have solid evidence, of course.

For American Express reason code F24 chargebacks, you’ll need to produce documentation that proves you had a valid authorization from the cardholder. Documents that could work here include:

• A positive address verification match
• A positive American Experess SafeKey match
• Documentation from a similar purchase by the same customer which was not challenged

Those are just a few pieces of admissible evidence. Fighting with disputes filed under this reason code can be especially tricky, though. In their guideline, American Express doesn’t even list admissible evidence for these disputes. The only “official” option is to offer proof that you already provided a credit to offset the amount charged as a way of trying to avoid the dispute.

For reason code F24 chargebacks, your best option is going to be to try and prevent them wherever possible.

How to Prevent Amex Reason Code F24 Chargebacks

As the old adage goes, “an ounce of prevention is worth a pound of cure.”

You may never be able to stop chargebacks entirely. But, you can limit your exposure to risk and keep your chargeback ratio in good standing by adopting a few best practices. You’re going to want to:

#1  |  Optimize Your Descriptors

Your billing descriptor is the indicator that shows up on your customers’ credit card statements. Ensure that it includes your “doing business as” (or “DBA”) name, as well as your website. This will help cardholders identify charges.

#2  |  Include a Phone Number

Adding your customer service contact number to your billing descriptor means that customers can contact you directly to ask about purchases (rather than calling the bank to file a chargeback).

#3  |  Add Special Conditions

If there’s a special condition that applies — for example, a “no show” charge” or an installment number — make sure that these show up in the charge descriptor. That way, the buyer doesn’t assume they’re being double-charged.

Take a Wider View

You can dispute invalid chargebacks from Amex reason code F24. However, it’s much more efficient to take a proactive stance. The same is true of the other chargeback reason codes, as well. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud.

Chargebacks911® can help your business manage all aspects of chargeback reason codes, with proprietary technologies and experience-based expertise. Contact us today for a free ROI analysis to learn how much more you could save.