Reason Code C18 — “No Show” or CARDeposit Canceled

How to Handle Amex Reason Code C18 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 — C18 — 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 C18?

American Express chargeback reason code C18 is “‘No Show’ or CARDeposit Canceled.” This reason code is in the contact of a lodging reservation or a credit for a CARDeposit charge.

It’s common practice to assess a “no-show” charge for guests who make a hotel reservation, but then do not show up. However, it the cardholder canceled their booking in accordance with your policies, this would not be an option.

Reason code C18 may be used to explain that the cardholder claims to have canceled a reservation, but did not receive a credit to which they are entitled. Or, Amex may use this reason code to signify that the cardholder was entitled to a credit for a CARDeposit charge, which the cardholder did not receive.

What Caused This Dispute?

Amex Chargeback Reason Code C18 is primarily issued when a lodging reservation was canceled by the booking cardholder, but they money for the booking was not refunded. To demonstrate, this scenario can arise if:

• You did not complete the cancelation of a reservation in a timely manner.
• A cardholder was promised a refund for a canceled reservation, but no credit was issued or received.
• A credit was issued, but the cardholder was billed before a credit posted to their account.
• The cardholder couldn’t understand your cancelation policies, such as cancelation deadlines.
• The cardholder attempted a cancelation request as directed, but was not successful.
• A cancelation was processed, but was delayed, resulting in the card in question being charged.

How to Respond to Amex Reason Code C18 Chargebacks

Upon receiving an Amex C18 chargeback, your instinct will naturally be to address the issue immediately. So, what's should you do if you feel you can demonstrate that the cardholder is in the wrong?

If you're convinced the chargeback was incorrectly applied, initiating a dispute response is the way forward. This is done through a process called representment.

Representment is your opportunity to contest a chargeback. It involves presenting evidence to the card issuer (American Express, in this case) proving all transaction stages were valid and in line with the provider's protocols. This may entail multiple crucial pieces of evidence.

Keep in mind, there is a rigid time frame to abide by. You have just 20 days to lodge your response with American Express. Note that this duration also encompasses the period taken for your acquirer to send you a dispute alert, as well as the time taken by the acquirer for reviewing and submitting your case. In realistic terms, you may likely have less than five days to compile and submit your response.

Acceptable Evidence for Amex Reason Code C18 Responses

You can re-represent these charges under the condition that you have compelling evidence.

For American Express reason code C18 chargebacks, you’ll need to provide either documentation that shows the “no-show” charge or CARDeposit charge was valid, or proof that you have already provided a credit that offsets the disputed charge.

Proof of your cancellation policy may just be the most convincing evidence in this situation. Your task is to clarify to Amex that you have a comprehensive system in place for policy disclosure to card users, and that you adhered to these policies. Further, you should also provide evidence that the purchaser failed to comply with these policies, such as the date of the cancelation request (if such a request exists).

In addition to this, a copy of the transaction record, such as the receipt or invoice, could also be helpful. The intent behind this action is to provide additional support to the argument that the card holder did not adhere to agreed-upon policies during checkout.

The success of representment depends on the thoroughness and relevance of the evidence provided. Maintaining detailed records of transactions and communications with customers is vital to effectively counteract all chargebacks, including those under reason code C18.

How to Prevent Amex Reason Code C18 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. Generally speaking, you’ll want to:

Take a Wider View

You can dispute invalid chargebacks from Amex reason code [CODE]. 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.