Amex
Chargeback Reason Codes

The amount of the authorization approval was less than the amount of the charge submitted by the merchant.

n/a

20 days

A transaction is processed for an amount beyond the merchant's floor limit; an error was made entering numbers manually.

• Do not process a transaction when a declined authorization has been received
• Do not process a transaction for more than the allowed tolerance level above the authorization amount

The charge submitted by the merchant was either declined or the card was expired.

n/a

20 days

Transaction was made after the authorization code and transaction date; the limited authorization index was present in the authorization request; the transaction amount exceeds the amount in the limited authorization response; the vendor did not exclude the tip in the authorization amount; the card was expired and/or the account was closed.

• Always authorize every transaction in accordance with merchant agreement
• Obtain authorization on the day of the transaction
• Don't include the tip on a previously authorized amount
• Obtain confirmation of authorization before completing all transactions

Transaction submission was made after the authorization approval had expired.

n/a

20 days

The transaction was not approved; the transaction was submitted after the expiration of the authorization approval; the authorization request was denied; or the transaction was made using an expired card.

• Process all transactions in a timely manner
• Do not process a transaction when a declined authorization has been received
• Do not process a transaction made with an expired card
• Train staff on the proper handling of authorization approvals

American Express has not received an expected credit (or partial credit) from the merchant.

n/a

20 days

The merchant didn't credit the account; the merchant issued the credit but not in time to be posted to the customer's most recent statement; the customer misunderstood the return policy; the merchant processed a transaction receipt that should have been voided.

• Issue credits promptly
• Share the return policy with the cardholder before completing the transaction
• Notify the cardholder when the credit has been issued
• Consider simplifying/clarifying your return policy

The cardholder refused delivery of goods or services or returned merchandise, but a credit was not processed.

n/a

20 days

Cardholder refused delivery of goods or services and has not yet received a credit; cardholder returned goods and has not yet received a credit.

• Process all credit vouchers promptly
• Notify the cardholder when the credit has been issued
• Properly disclose special refund policies on the sales draft, prominently near the cardholder’s signature

The cardholder claims that the order for goods or services was canceled.

n/a

20 days

Cancellation not received; cancellation not processed.

• Create and post a clear cancellation policy
• Acknowledge canceled orders as soon as possible

The cardholder claims to have not received (or only partially received) the goods or services ordered.

n/a

20 days

Merchant did not ship the goods/service by the agreed delivery date or shipped only a partial order; merchant did not clearly explain the expected shipping/arrival date; merchant billed the cardholder before delivery of merchandise; merchant did not make order available for pick-up.

• In the case of a delayed order, always notify the customer
• Provide cardholder the option of either continuing with the order or canceling it
• Clearly display the expected shipping date and delivery date on the invoice or order receipt
• Provide a signed order receipt or invoice showing receipt of services or merchandise

Cardholder was charged for a transaction that was paid using an alternate form of payment.

n/a

20 days

The merchant didn't void multiple transactions; the transaction was processed but the cardholder paid for the same merchandise or service by other means.

• Double check calculations and the final transaction amount before processing
• Void any transactions if the cardholder wishes to use a different payment method

The cardholder claims a lodging reservation was canceled, or an expected credit for a CARDeposit charge was not received.

n/a

20 days

Cardholder was billed for lodging services that were allegedly canceled.

• Always inform the cardholder of your cancellation policy at the time of the reservation
• Log all confirmation and cancellation numbers as required by the CARDeposit programs

The cardholder claims to have been charged for a canceled recurring transaction.

n/a

20 days

The cardholder withdraws permission to change the account, or cancelled payment for subscription; cardholder or issuing bank cancels the account; merchant neglects to cancel a recurring transaction; merchant processes a transaction after being notified the cardholder's account was closed.

• Terminate recurring transactions when the cardholder requests cancelation
• Consider a no-strings-attached cancelation policy
• Don't increase the transaction amount without the cardholder's consent
• Don't prematurely bill the cardholder
• Send notifications for upcoming charges

The cardholder claim that the goods or services were defective or not as described prior to the transaction.

n/a

20 days

The merchandise was damaged upon its arrival; the merchandise does not match the merchant's description; the cardholder disputes the quality of the product; the cardholder fraudulently claims the merchandise is damaged or not as described.

• Double check orders to ensure the correct item is shipped
• Package items carefully to avoid damage during shipping
• Provide honest, detailed product descriptions
• Accept returns from cardholders and issue credit promptly
• Never sell counterfeit products

The cardholder claims to have received damaged or defective merchandise or services.

n/a

20 days

The merchandise was damaged upon its arrival; the merchandise does not match the merchant's description; the cardholder fraudulently claims the merchandise is damaged.

• Package items carefully to avoid damage during shipping
• Provide honest, detailed product descriptions
• Accept returns from cardholders and issue credit promptly
• Never sell counterfeit products

The cardholder claims to have been incorrectly billed for capital damages to a rented vehicle.

n/a

20 days

• Cardholder misunderstood responsibility for capital damages
• Cardholder disagrees with charges
• Total damages exceed 110% of the agreed-upon amount
• The merchant made an error in calculating the total

• Maintain proof that the cardholder agreed to and signed an acknowledgment of responsibility for capital damages
• Make sure total charges do not exceed 110% of the agreed-upon amount

The cardholder claims to have been incorrectly charged for theft or loss of use of a rental vehicle.

n/a

20 days

• The merchant bills the cardholder for AMX-covered costs

• Maintain proof that charges were valid and not for theft, loss of use, or other fees
• Maintain proof that a credit which directly offsets the disputed charge has already been processed.

American Express' Fraud Full Recourse Program flagged the transaction.

n/a

20 days

Merchant falls under high-risk category; The issuer receives an unusual number of inquiries and chargebacks compared to processing history; merchant account has been disabled or cancelled due to suspicious activities or violation of the agreement.

• Always obtain authorized approval for an e-commerce and recurring transactions regardless of the dollar amount
• Always verify the account number to prevent errors or misunderstandings
• Properly identify the type of transaction, such as card-not-present
• Use security codes and AVS.
• Simplify/clarify billing descriptors

This is a program that allows American Express to process any dispute immediately as cardholder files a chargeback for any reason than actual fraud.

n/a

20 days

Merchant enrolled himself in this program to avoid receiving inquiries and disputes; Amex put the merchant in the program due to odd number of disputes; merchant’s business falls under high chargeback ratio industry

• Always obtain an authorized approval for e-commerce and recurring transactions regardless of the dollar amount.
• Always verify account numbers
• Use security codes and AVS
• Set billing descriptor correctlyTrain staff on the proper handling of terminal issues

The cardholder has disputed the charge and the merchant has been placed in the Partial Immediate Chargeback Program by American Express.

n/a

20 days

Merchant enrolled himself in this program to avoid receiving inquiries and disputes; Amex put the merchant in the program due to odd number of disputes; merchant’s business falls under high chargeback ratio industry

• Always obtain an authorized approval for e-commerce and recurring transactions regardless of the dollar amount.
• Always verify account numbers
• Use security codes and AVS
• Set billing descriptor correctly

Cardholder did not participate in a purchase and was not provided a copy of the card imprint (card-present environments only).

n/a

20 days

The merchant did not obtain correct card information from the cardholder or processed a transaction erroneously; transaction was processed on an account not associated with a valid card; a family member used the primary cardholder’s account without permission.

• Always request authorization for mail order, telephone order, internet, and recurring transactions, regardless of the dollar amount
• Obtain additional validation, such as an imprint or PIN, or through CDCVM
• Obtain additional validation, such as an imprint or PIN, or through CDCVM
• Set billing descriptor correctly

The cardholder denies subsequent transactions associated with additional ROCs (“records of charge”).

n/a

20 days

The cardholder admits to having authorized a transaction. However, the merchant submitted multiple ROCs to American Express. The cardholder denies authorizing all of the transactions associated with the subsequent ROCs.

• Get valid authorization for every transaction submitted for processing
• Do not reattempt authorization after a hard decline
• Maintain accurate transaction records
• Ensure CRMs and other software are up to date

The cardholder denies participation in the charge submitted by the merchant, who cannot prove otherwise.

n/a

20 days

The merchant processed an invalid account number; a family member ordered from the primary cardholder’s account without permission; the cardholder is not able to recognize purchase on the billing statement; criminal fraud was committed.

• Always obtain authorized approval
• Use secondary validation methods such as PIN
• Set clear billing descriptors

The cardholder claims an unauthorized transaction occurred without the physical card involved.

n/a

20 days

In a card-absent environment (online/phone/direct mail sales, etc.), either a) an unauthorized (fraudulent) claim was processed using an invalid or stolen account number; or b) Due to an unclear or a confusing merchant name the cardholder believes the transaction to be fraudulent.

• Always request authorization for mail order, telephone order, internet, and recurring transactions, regardless of the dollar amount
• Obtain additional validation, such as an imprint or PIN
• Clearly and properly identify card present and card absent transactions

The cardholder denies participation in a situation where a counterfeit chip card was used at a POS system, but the transaction was not processed as a chip transaction.

n/a

20 days

The POS system was not an enabled for chip, or the transaction was manually keyed; the merchant's card processor did not transmit the full chip data to Visa; a chip-reading terminal was not actually used.

• Upgrade to compliant terminals
• Make sure to obtain additional validation, such as an imprint or PIN
• Take an imprint (either electronic or manual) for every card-present transaction
• Train staff on the proper handling of terminal issues

A fraudulent transaction was made using the actual credit card, according to the cardholder.

n/a

20 days

Merchant did not ensure that the card was either swiped or that the chip was read; merchant did not obtain manual card imprint on a key-entered transaction; a card-not-present transaction was not identified as such; fraud was committed.

• Upgrade to compliant terminals
• Make sure to obtain additional validation, such as an imprint or PIN
• Take an imprint (either electronic or manual) for every card-present transaction
• Train staff on the proper handling of terminal issues

Complete support and/or documentation were requested but not provided.

n/a

20 days

• The merchant did not supply documents requested.
• The merchant supplied only partial documentation.

• Read requests carefully and provide full documentation

American Express did not receive a response to an inquiry within the specified timeframe.

n/a

20 days

• The merchant did not respond to an American Express inquiry.
• The merchant responded to an American Express inquiry, but not within 20 days.

• Maintain proof you responded to the original inquiry within the specified timeframe
• Maintain proof that a credit which directly offsets the disputed charge has already been processed.

The merchant authorized American Express to process a chargeback for the charge.

20 days

• The merchant authorized the chargeback.

• Maintain proof that a credit which directly offsets the disputed charge has already been processed.

The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder.

n/a

20 days

The merchant erred, either in entering or calculating information; the cardholder supplied an incorrect or invalid card number.

• Double check numbers
• Obtain secondary validation, such as PIN

The cardholder was debited for a transaction that should have been a credit.

n/a

20 days

The merchant processed a debit instead of a credit, processed a credit instead of processing a reversal, or in some other way processed a transaction that differed from the obtained authorization.

• Double check calculations, amount, and type of transaction before processing
• Train staff on the proper procedures for processing credits, debits, and reversals

The cardholder was credited for a transaction that should have been a debit.

n/a

20 days

The merchant processed a credit instead of a debit, or in some other way processed a transaction that differed from the obtained authorization.

• Double check calculations, amount, and type of transaction before processing
• Train staff on the proper procedures for processing credits, debits, and reversals

The amount in the authorization does not match the amount from the transaction.

n/a

20 days

The merchant erred, either in entering or calculating information; the merchant changed the amount of the transaction for some reason, such as adding a tip; exchanged the amount post-transaction without cardholder permission.

• Double check calculations and the final transaction amount before processing
• Don't alter the transaction amount without the cardholder's consent

The charge was not submitted within the required timeframe.

n/a

20 days

The transaction wasn't processed in a timely fashion and the account has since been closed; transaction was posted after 181 days of the original transaction date.

• Deposit order receipt with your acquirer as soon as possible, preferably on the day of the sale
• Complete payment batches as soon as possible
• Process transactions within 180 days of the original purchase
• Be aware that paper receipts typically take longer to process

A single transaction processed two or more times.

n/a

20 days

The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant's system; the transaction was processed but the cardholder paid for the same merchandise or service by other means.

• Review transaction receipts before depositing
• Submit a batch only one time
• Void and credit any duplicate transactions
• Train staff on the proper procedures for handling credits

The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder.

n/a

20 days

The processed the transaction to an incorrect account number; The merchant did not authorize the transaction and it was processed to an account number not on the issuer's master file.

• As far as possible, swipe card or read chip for transactions
• Double-check numbers before processing
• Confirm account numbers with customers for card-not-present transactions
• Train staff on the proper procedures for processing transactions

The merchant made one or more errors related to the transaction currency.

n/a

20 days

The transaction currency differs from the currency transmitted through Visa; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.

• Inform cardholders of the use of currency conversion and applicable fees
• Always give the cardholder the option to make the purchase using local currency
• Train your sales staff on proper procedures for transaction using a different currency