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Chargeback Reason Codes 2021

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Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future.

American Express

American Express Chargeback Reason Codes

Fraud

Description

Missing Imprint

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a transaction without using the magnetic stripe or chip card data, and the cardholder claims he or she didn’t participate in the purchase. Note: This reason code should not be used for card-not-present transactions or charges that qualify for the keyed-no imprint program.

Prevention Steps

  1. Create an electronic or manual imprint for every card-present transaction.
  2. Use fallback options—like manually entering transaction data—as a last resort.
  3. If you do perform a key-entered transaction, make a manual imprint of the card.
  4. Only use EMV-compliant terminals.
  5. Always use the correct cardholder verification method—signature, PIN, etc.
  6. Make sure you differentiate between card-not-present and card-present transactions during clearing by noting internet, phone, or mail orders.

Learn More about American Express Chargeback Reason Code F10: Fraud

Description

Missing Signature

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The merchant neglected to give the cardholder a copy of the signed receipt; signature on the receipt is invisible or not prominent due to light ink, ribbed or colored paper, or fading; the original order receipt is mishandled or is scanned at a smaller size.

Prevention Steps

  1. Scan or make copies of the order receipt at actual size
  2. Maintain full ink/toner in machines
  3. Print and keep a copy of the order receipt
  4. Always provide cardholder with a copy of the receipt

Learn More about American Express Chargeback Reason Code F14: Fraud

Description

No Card Member Authorization

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims he or she has previously shopped with the merchant but didn’t participate in this particular purchase.

Prevention Steps

  1. Consider using fraud detection tools such as CID and Address Verification Service (AVS).
  2. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting an authorized transaction.
  3. Use a billing descriptor that is easily recognized by the cardholder.
  4. Always submit an authorization request, no matter the transaction amount.
  5. Create an electronic or manual imprint for every card-present transaction.
  6. Use fallback options—like manually entering transaction data—as a last resort.
  7. Only use EMV-compliant terminals.
  8. Always use the correct cardholder verification method—signature, PIN, etc.

Learn More about American Express Chargeback Reason Code F24: Fraud

Description

Card Not Present

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a mail order, telephone order, or internet order, and the cardholder claims he or she didn’t participate in the purchase.

Prevention Steps

  1. Consider using fraud detection tools such as card security code (CID) and Address Verification Service (AVS).
  2. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting an unauthorized transaction.
  3. Use a billing descriptor that is easily recognized by the cardholder. Always submit an authorization request, no matter the transaction amount.
  4. Make sure you differentiate between card-not-present and card-present transactions during clearing by noting internet, phone, or mail orders.

Learn More about American Express Chargeback Reason Code F29: Fraud

Description

EMV Counterfeit

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a transaction with a counterfeit card, and the cardholder claims he or she didn’t participate in the purchase. The counterfeit card wasn’t detected because either the POS wasn’t chip-and-PIN enabled or the transaction was manually keyed. Note: This reason code should not be used for contactless transactions or digital wallet payments.

Prevention Steps

  1. Only use EMV-compliant terminals.
  2. Always use the correct cardholder verification method—signature, PIN, etc.
  3. Make sure you differentiate between card-not-present and card-present transactions during clearing by noting internet, phone, or mail orders.

Learn More about American Express Chargeback Reason Code F30: Fraud

Description

EMV Lost/Stolen/Non-Received

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a transaction but the cardholder denies participating in it because the card was lost, stolen, or never received. The fraud wasn’t detected because either the POS was not chip-and-PIN enabled or the transaction was manually keyed. Note: This reason code should not be used for contactless transactions, digital wallet payments, or charges that qualify for the “No PIN” program.

Prevention Steps

  1. Only use EMV-compliant terminals.
  2. Always use the correct cardholder verification method—signature, PIN, etc.
  3. Make sure you differentiate between card-not-present and card-present transactions during clearing by noting internet, phone, or mail orders.

Learn More about American Express Chargeback Reason Code F31: Fraud

Authorization

Description

Charge Amount Exceeds Authorization Amount

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The amount of the authorization approval was less than the amount you charged the card.

Prevention Steps

  1. Don’t change the amount of a transaction once authorization has been requested and approved.
  2. If you add gratuities to transactions, don’t exceed the acceptable limit.

Learn More about American Express Chargeback Reason Code A01: Authorization

Description

No Valid Authorization

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

An authorization approval before processing the transaction was not received . The request was either declined or the card had expired.

Prevention Steps

  1. Always send an authorization request before processing a transaction.
  2. If you receive a “decline” authorization response, either terminate the transaction or submit a second authorization request. Never proceed without authorization.
  3. Check the card’s expiration date before processing the transaction. Ask for an alternate form of payment if the card is no longer valid.

Learn More about American Express Chargeback Reason Code A02: Authorization

Description

Authorization Approval Expired

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The authorization approval expired before you charged the card.

Prevention Steps

Make sure you send completed transactions to your payment processor within the timeframe specified in your merchant agreement. A good practice is to submit transactions on the day of the sale or as soon as possible.

Learn More about American Express Chargeback Reason Code A08: Authorization

Processing Errors

Description

Unassigned Card Number

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a transaction using an invalid or otherwise incorrect card number. Note: Resubmission of the transaction if you can provide the correct card number.

Prevention Steps

  1. Always request authorization before completing a transaction.
  2. If an authorization request is denied, stop the transaction and ask for an alternate form of payment.
  3. Always swipe or dip a card—only use fall-back options in emergency situations.

Learn More about American Express Chargeback Reason Code P01: Processing Errors

Description

Credit Processed as Charge

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a transaction, but the cardholder claims it should have been a refund.

Prevention Steps

  1. Take care not to accidentally process transactions that should be voided or cancelled
  2. Adhere to any promises for credits or refunds.
  3. Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.
  4. If you notice a duplicate transaction, issue a credit as soon as possible.
  5. Double check all transaction receipts before they are deposited.

Learn More about American Express Chargeback Reason Code P03: Processing Errors

Description

Charge Processed as Credit

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a refund, but the cardholder claims it should have been a transaction.

Prevention Steps

  1. Take care not to accidentally process transactions that should be voided or cancelled.
  2. Double check all transaction receipts before they are deposited.

Learn More about American Express Chargeback Reason Code P04: Processing Errors

Description

Incorrect Charge Amount

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The transaction amount you processed differs from the amount the cardholder agreed to pay.

Prevention Steps

  1. Unless authorized, never change the amount of a completed transaction without the cardholder’s consent.
  2. Use caution when entering handwritten transaction information. 3) Always swipe or dip a card—only use fall-back options in emergency situations.

Learn More about American Express Chargeback Reason Code P05: Processing Errors

Description

Late Submission

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The transaction was not submitted within the required time frame.

Prevention Steps

Make sure you send completed transactions to your payment processor within the timeframe specified in your merchant agreement. A good practice is to submit transactions on the day of the sale or as soon as possible.

Learn More about American Express Chargeback Reason Code P07: Processing Errors

Description

Duplicate Charge

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

A single transaction was submitted more than once.

Prevention Steps

  1. If you notice a duplicate transaction, issue a credit as soon as possible.
  2. Double check all transaction receipts before they are deposited.
  3. Only send batches one time.
  4. If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.

Learn More about American Express Chargeback Reason Code P08: Processing Errors

Description

Non-Matching Card Number

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The card number in the submission does not match the card number used for the original transaction.

Prevention Steps

  1. Use caution when entering handwritten transaction information.
  2. Always swipe or dip a card—only use fall-back options in emergency situations.

Learn More about American Express Chargeback Reason Code P22: Processing Errors

Description

Currency Discrepancy

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Processed a transaction but didn’t use the correct currency.

Prevention Steps

  1. Have systems in place to manage multiple currencies. Make sure staff are trained on procedures.
  2. Don’t automatically convert currencies for international shoppers. Allow customers to opt-in to a conversion service if they are interested, but don’t require its use.

Learn More about American Express Chargeback Reason Code P23: Processing Errors

Card Member Disputes

Description

Credit Not Processed

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims you were supposed to provide a refund, but a credit hasn’t been applied to the card yet.

Prevention Steps

  1. Make sure your refund or cancellation policy clearly explains what the cardholder is expected to do, and make the policy easy to find.
  2. Adhere to any promises for credits or refunds.
  3. Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.
  4. If you will be crediting the cardholder for a reduced amount, communicate the difference before processing the credit.

Learn More about American Express Chargeback Reason Code C02: Card Member Disputes

Description

Goods/Services Returned or Refused

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims to have returned merchandise, but you didn’t provide a refund. Or, the cardholder refused to accept the services offered or the delivery of goods, but you didn’t provide a credit.

Prevention Steps

  1. For card-present transactions, clearly disclose the return policy on the transaction receipt. If the policy is on the front of the receipt, it should be near the customer signature line. If it is printed on the back, the cardholder must sign the front and initial the back near the policy disclosure.
  2. For card-present transactions, print the words “no refunds” or “in-store credit only” on all copies of the transaction receipt if you do not allow returns or have a limited return policy.
  3. For online transactions, clearly disclose the return policy, either on the checkout page that contains the final purchase amount or on the checkout page near the submit button. Require customers to select a “click to accept” box or acknowledge the policy in some other way before completing the purchase.
  4. Don’t accept delivery of returned merchandise if it doesn’t comply with your policy.
  5. Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.
  6. If you will be crediting the cardholder for a reduced amount, communicate the difference before processing the credit.

Learn More about American Express Chargeback Reason Code C04: Card Member Disputes

Description

Goods/Services Canceled

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims that the goods or services ordered were cancelled, but you didn’t provide a refund.

Prevention Steps

  1. For card-present transactions, clearly disclose the cancellation policy on the transaction receipt. If the policy is on the front of the receipt, it should be near the customer signature line. If it is printed on the back, the cardholder must sign the front and initial the back near the policy disclosure.
  2. For online transactions, clearly disclose the cancellation policy, either on the checkout page that contains the final purchase amount or on the checkout page near the submit button. Require customers to select a “click to accept” box or acknowledge the policy in some other way before completing the purchase.
  3. Fulfill all qualified cancellations requests promptly so the credit will appear on the cardholder’s next statement.
  4. If you will be crediting the cardholder for a reduced amount, communicate the difference before processing the credit.

Learn More about American Express Chargeback Reason Code C05: Card Member Disputes

Description

Goods/Services Not Received or Only Partially Received

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims not to have received the goods or services. Or, the cardholder only partially received what was promised.

Prevention Steps

  1. Abide by the delivery date you promised.
  2. Have merchandise ready for pickup at the time you specified it would be available.
  3. Make sure you accurately describe the services that will be provided.
  4. Don’t charge the card until the merchandise has been shipped.
  5. Notify the customer as soon as possible if merchandise is out of stock or the delivery will be delayed.

Learn More about American Express Chargeback Reason Code C08: Card Member Disputes

Description

Paid by Other Means

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims to have paid with a different payment method.

Prevention Steps

  1. Double check all transaction receipts before they are deposited.
  2. If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.

Learn More about American Express Chargeback Reason Code C14: Card Member Disputes

Description

“No Show” or CARDeposit Canceled

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

Cardholder was billed for lodging services that were allegedly canceled.

Prevention Steps

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

Learn More about American Express Chargeback Reason Code C18: Card Member Disputes

Description

Canceled Recurring Billing

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims to have cancelled a recurring billing transaction but was still charged. Or, the cardholder tried to cancel the transaction but was unable to.

Prevention Steps

  1. Make sure qualified cancellation and non-renewal requests are fulfilled promptly.
  2. Send a notification after you’ve cancelled the recurring payment. If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled.
  3. Clearly and concisely communicate your cancellation policy and make it easy for customers to find the information.
  4. Remind customers of upcoming charges, especially if a significant amount of time passes between each recurring billing cycle.

Learn More about American Express Chargeback Reason Code C28: Card Member Disputes

Description

Goods/Services Not As Described

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims to have received goods or services that were different from what was offered at the time of the purchase.

Prevention Steps

  1. Make sure all service and merchandise descriptions are complete, accurate, and not misleading.
  2. Make sure your fulfillment department is familiar with your merchandise, has a complete understanding of what has been purchased, and knows what to ship.
  3. Provide exceptional customer service and promptly acknowledge customers when they make contact.
  4. If the cardholder contacts you to resolve the issue, promptly fulfill all valid requests for replacements or refunds.

Learn More about American Express Chargeback Reason Code C31: Card Member Disputes

Description

Goods/Services Damaged or Defective

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder claims to have received goods or services that were damaged or defective.

Prevention Steps

  1. Provide exceptional customer service and promptly acknowledge customers when they make contact.
  2. If the cardholder contacts you to resolve the issue, promptly fulfill all valid requests for replacements or refunds.
  3. Use the correct size boxes and sufficient packing material so items won’t break in transit.
  4. Resolve the issue yourself. Don’t refer the cardholder to the manufacturer instead.

Learn More about American Express Chargeback Reason Code C32: Card Member Disputes

Inquiry/Miscellaneous

Description

Vehicle Rental – Capital Damages

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

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

Prevention Steps

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

Learn More about American Express Chargeback Reason Code M10: Inquiry/Miscellaneous

Description

Vehicle Rental – Theft or Loss of Use

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The merchant bills the cardholder for AMX-covered costs

Prevention Steps

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

Learn More about American Express Chargeback Reason Code M49: Inquiry/Miscellaneous

Description

Chargeback Authorization

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

American Express sent an inquiry to learn more about the transaction, and you responded by authorizing American Express to proceed with a chargeback.

Prevention Steps

  1. Maintain complete and accurate records for each transaction you process.
  2. Make sure you can access this information quickly and easily.

Learn More about American Express Chargeback Reason Code M01: Inquiry/Miscellaneous

Description

Insufficient Reply

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

American Express sent an inquiry to learn more about the transaction, but you didn’t provide enough information.

Prevention Steps

  1. Maintain complete and accurate records for each transaction you process.
  2. Make sure you can access this information quickly and easily.

Learn More about American Express Chargeback Reason Code R03: Inquiry/Miscellaneous

Description

No Reply

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

American Express sent an inquiry to learn more about the transaction, but you didn’t reply within the specified time frame.

Prevention Steps

  1. Maintain complete and accurate records for each transaction you process.
  2. Make sure you can access this information quickly and easily.

Learn More about American Express Chargeback Reason Code R13: Inquiry/Miscellaneous

Description

Fraud Full Recourse Program

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder denies authorizing the charge and the merchant has been placed in the Fraud Full Recourse Program.

Prevention Steps

  1. Proof that you had not been placed in the Fraud Full Recourse Program at the time of the Chargeback, or
  2. Proof that a credit which directly offsets the disputed charge has already been processed.

Learn More about American Express Chargeback Reason Code FR2: Inquiry/Miscellaneous

Description

Immediate Chargeback Program

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

The cardholder has disputed the charge and the merchant has been placed in the Immediate Chargeback Program.

Prevention Steps

  1. Issue credits/refunds within 7 calendar days.
  2. Ensure your refund/cancellation policies clearly state time frames of when credits will be issued

Learn More about American Express Chargeback Reason Code FR4: Inquiry/Miscellaneous

Description

Partial Immediate Chargeback Program

Time Limit (Issuer/Cardholder)

not applicable

Time Limit (Acquirer/Merchant)

20 days

Typical Causes

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

Prevention Steps

  1. Issue credits/refunds within 7 calendar days.
  2. Ensure your refund/cancellation policies clearly state time frames of when credits will be issued

Learn More about American Express Chargeback Reason Code FR6: Inquiry/Miscellaneous

Not Classified

Expired

Services

Dispute Compliance

Point-of-Interaction Error

Cardholder Disputes

Consumer Disputes