Reason Code P01 — Unassigned Card Number

How to Handle Amex Reason Code P01 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 — P01 — 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 P01?

American Express chargeback reason code P01 is “Unassigned Card Number.” This reason code is used to explain that you submitted a charge. But, when you submitted the transaction for processing, the card number you included did not correspond with a valid account on file with American Express.

This can happen if you manually input card information, but made a typo. Or, it could be that the card used to make the transaction was no longer valid. In either case, the card number you submitted can’t be used to connect the purchase to a valid account.

What Caused This Dispute?

Like we discussed above, Amex Chargeback Reason Code P01 is primarily issued if you submit a transaction without a valid card number. This may happen if:

How to Respond to Amex Reason Code P01 Chargebacks

So, let’s say that you can prove the transaction in question was not submitted with an incorrect card number. What happens then?

Naturally, if you receive an Amex P01 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 P01 Responses

You can re-represent these charges under the condition that you have compelling evidence. For American Express reason code P01 chargebacks, examples of compelling evidence can include:

• A copy of the physical imprint of the card, confirming the card number submitted.
• A copy of the authorization approval you received, showing that you got authorization approval from Amex for the card number in question.
• A copy of the charge record from the terminal that electronically read the card number

Alternately, 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 P01.

How to Prevent Amex Reason Code P01 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  |  Use Cardrefresher

Cardrefresher is a service offered by Amex. It keeps the American Express Cards you have on file updated on a daily basis. This way you know you’ll have the correct information on file when you need it./htm

#2  |  Get an Imprint

If you have to manually key-in a transaction, make sure to get an imprint of the card whenever possible. This is crucial for recordkeeping, and can also be an important piece of evidence in case of a dispute.

#3  |  Double Check Your Info

Confirm that the card numbers match the corresponding card before you submit any transaction for processing.

#4  |  Get Approval

Make sure that you have approval before submitting any transactions for processing. Again, keep good records to prove that you got that approval in case a dispute comes up later.

#5  |  Dip the Chip

When processing card-present transactions, ask customers to dip or tap their EMV-enabled card whenever possible. This will make it more likely that you get accurate card information.

Take a Wider View

You can dispute invalid chargebacks from Amex reason code P01. 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.