American Express Reason Codes
Everything You Need to Know About American Express Reason Codes
Reason codes make it easy for you to check the status of your disputes or chargebacks.
If your business has been subject to a chargeback, you may login to the “Resolve Disputes” area in your American Express merchant account. You will see a complete table of your disputes and chargebacks. Each of your disputes and chargebacks will have a reason code attached to it.
What is a chargeback reason code?
American Express isn’t the only card network that uses reason codes.
Each major card network uses its own set of codes which can make it confusing for you to decipher. In fact, there are around 151 codes across all four major credit card companies!
The American Express chargeback reason code is a 2 to 4 digit code consisting of numbers and letters. In most cases, these codes fall into one of these five categories:
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#1 Fraud or No Authorization
This can happen for two reasons: either the customer doesn’t remember this transaction taking place, or the customer’s credit card may have been compromised.
#2 Cancel Recurring Billing
In these cases, the customer may have cancelled a subscription but was still charged. Or they may not have been aware that their purchase includes recurring billing.
#3 Products or Services
The customer may make claims that a product or service did not match the description or that the product arrived damaged.
#4 Liability Shift
These apply to non-chip card chargebacks, or fraudulent transactions.
This miscellaneous category is used for any other dispute that doesn’t fit in to any of the main categories.
While chargebacks happen to businesses of all kinds, you are going to want to keep your chargebacks to a minimum to reduce any fees, time and penalties.
How can you prevent chargebacks from occurring?
Chargeback Prevention Tips from American Express:
- Process credit immediately and let cardmembers know when they will receive a refund
- Share the return or exchange policy before completing the checkout process
- Ask for the Card Identification Number
- Use the Automated Address Verification Service
- Keep dissatisfied customers in the loop about the steps you are taking to resolve the dispute
- Obtain the customer’s signature for items picked up in store, work orders, etc
- Bill customers after products are shipped or service provided
Need Help with a Chargeback Dispute?
If your business has been subject to an American Express chargeback dispute, or if you have received an enquiry – you need to act fast.
Get in touch with us right away so we can help you successfully navigate an American Express transaction dispute with ease and confidence.
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