Reason Code M10 — Vehicle Rental – Capital Damages

How to Handle Amex Reason Code M10 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 — M10 — 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 M10?

American Express chargeback reason code M10 is “Vehicle Rental - Capital Damages.” This reason code is used to explain that the cardholder made a reservation for a vehicle rental. One of the following issues then arose:

• Capital Damage: The cardholder was billed for damage that allegedly occurred while the vehicle was in the cardholder’s possession.
• Theft: The vehicle was stolen while in the cardholder’s possession.
• Loss of Use: The vehicle was incapacitated and inoperable.

The cardholder was then charged billed in response to one of the conditions outlined above. However, the cardholder argues that the issue was not their fault, and that they should not be charged as a result.

What Caused This Dispute?

Amex Chargeback Reason Code M10 is primarily issued when a vehicle rental goes wrong. To demonstrate, this scenario can arise if:

How to Respond to Amex Reason Code M10 Chargebacks

So, what happens if you can prove that the cardholder was rightly charged for damage, theft, or loss of use of the vehicle in question?

Naturally, if you receive an Amex M10 chargeback, you’ll want to resolve the issue right away. If you feel that the chargeback was filed in error, you should file a dispute response. This is done through a process called representment.

Representment is the process through which you’ll challenge a chargeback. You provide evidence to the card issuer (in this case, American Express) that all aspects of the transaction were legitimate and in accordance with the card issuer's policies. This can involve several key pieces of evidence.

Also, remember that there’s a strict time limit to consider. 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 provide you with a dispute notification, as well as time spent by the acquirer reviewing and submitting your case. In practical terms, you’ll often have five days or less in which to prepare and submit your response.

Acceptable Evidence for Amex Reason Code M10 Responses

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

For American Express reason code M10 chargebacks, you’ll need to provide proof that the cardholder agreed to — and signed an acknowledgement of — responsibility for capital damages. You must also show that the charge in question did not exceed 110% of the amount agreed upon. Examples of acceptable documents include:

• Documentation outlining customer liability for damage or theft, signed by the cardholder.
• A copy of the terms and conditions that were presented to the customer at the time of booking.
• Documentation showing that the cardholder took possession of the vehicle according to the reservation.
• Photographic evidence of the alleged capital damage that precipitated the charge.

Alternatively, you might have already issued a credit to the buyer as a way of trying to avoid the dispute. In this case, you’ll need to offer proof that you already provided a credit to offset the amount charged.

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 M10.

How to Prevent Amex Reason Code M10 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:

#1 |  Get it in Writing

Obtain formal acknowledgment from the cardholder of responsibility for damage or theft of a vehicle before submitting any charges.

#2 |  Take Pictures

Take pictures of the vehicle before the customer takes possession of it, documenting any preexisting damage or cosmetic defects.

#3 |  Get Consent

Obtain formal, signed consent from the cardholder, showing that they agree to be charged for an amount equivalent to the cost of any loss, damage, or theft they cause.

Take a Wider View

You can dispute invalid chargebacks from Amex reason code M10. 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.