Reason Code P07 — Late Submission

How to Handle Amex Reason Code P07 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 — P07 — 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 P07?

American Express chargeback reason code P07 is “Late Submission .”

When you conduct a transaction involving a credit or debit card, that transaction needs to be submitted for processing. This is a process called “presentment,” and it’s how the money gets transferred from the customer’s account into your account.

However, banks and card networks have strict requirements for how transaction information can be submitted. You’re expected to submit every transaction in a timely manner. If you fail to do so, the authorization you received for the transaction will expire.

A reason code P07 chargeback means that the charge in question was not submitted within the time frame required by American Express.

What Caused This Dispute?

Amex Chargeback Reason Code P07 is primarily issued when the charge was not submitted in the required timeframe. To demonstrate, this scenario can arise if:

How to Respond to Amex Reason Code P07 Chargebacks

What should you do if you can prove that the presentment was completed within the required timeframe?

If you receive an American Express P07 chargeback, it's crucial to address the matter promptly. If you believe the chargeback was mistakenly issued, you should initiate a dispute response through a process called representment. This involves contesting the chargeback by presenting evidence to the card issuer, which in this case is American Express, to show that every aspect of the transaction was valid and complied with their policies.

It’s important to gather several key pieces of evidence for your case. Additionally, keep in mind that there is a strict deadline here. You have just 20 days to submit your response to American Express.

This period also includes the time taken by your acquirer to notify you of the dispute and the time spent reviewing and submitting your case. In practical situations, you may only have five days or even less to assemble and send in your response.

Acceptable Evidence for Amex Reason Code P07 Responses

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

For American Express reason code P07 chargebacks, you’ll need to provide proof that the charge was submitted within the required time frame. Some of the documents you can submit here include:

• Banking records, showing when the transaction was submitted
• Transaction receipts or invoices
• A copy of your terms and policies, outlining when transactions will be submitted
• Copies of any emails or phone transcripts outlining contact between you and the buyer

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 P07.

How to Prevent Amex Reason Code P07 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  |  Promptly Submit Transactions For Processing

Aim to process transactions immediately, preferably on the same day that you complete the sale or provide the service. Delaying this action can lead to confusion for your customers when they eventually notice the charge on their account statement.

#2  |  Submit All Required Information

Ensure that each transaction includes all essential information. This should encompass the transaction date, a straightforward description of the product or service provided, the total amount charged, and relevant customer details. Having this information readily available assists your customers in recalling and identifying their purchases with ease.

#3  |  Communicate Effectively

Always engage in transparent communication with your customers, particularly when there are delays or problems during the processing phase. Providing them with updates can help avoid misunderstandings and prevent unnecessary conflicts.

#4  |  Clarify Your Billing Descriptor

Ensure that your billing descriptors effectively reflect your business's name and provide a clear description of the transaction. This should include the "soft" billing descriptor that is displayed prior to the transaction being finalized. Doing so will aid customers in promptly recognizing their purchases.

#5  |  Review Failed Attempts

Monitor your transaction trends for any irregularities. Identifying and resolving problems at an early stage, such as determining the cause of frequent failed presentment attempts, can help prevent chargebacks resulting from late presentment.

#6  |  Review All Rule Changes Carefully

Stay updated on the most recent regulations from card networks related to presentment. Being aware of these guidelines can assist you in reducing potential disputes and enhance your ability to challenge chargebacks more successfully.

Take a Wider View

You can dispute invalid chargebacks from Amex reason code P07. 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.