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Have you ever faced a dispute while using your American Express card? If yes, then you might be aware of the chargeback process. Chargebacks can be challenging, but American Express has made it easier by providing chargeback reason codes. Do you want to know more about these codes? Keep reading this article to get an in-depth understanding of the American Express Chargeback Reason Codes for 2023.

In short, this article will guide you through the American Express Chargeback Reason Codes for the year 2023. We will explain what each reason code means and how to handle them if you come across any disputes. With this guide, you can understand the process better and save your time and money from going through the chargeback process.

1. Fraud - Card Present - 10

Fraud is a serious issue for any business that accepts credit card payments, and American Express has established various chargeback reason codes to help protect their cardholders against fraudulent transactions. One such code is "Fraud - Card Present - 10."

This reason code is used when a cardholder disputes a charge for a transaction that occurred with their physical credit card present. This may occur if the cardholder believes that their card was used fraudulently, either by an unauthorized person or by the merchant themselves.

Merchants should take this reason code very seriously, as it indicates a potentially serious breach of security. It is important to take all necessary measures to prevent fraud, such as verifying the cardholder's identity and confirming the transaction amount before completing the sale. Additionally, merchants should make sure that their point-of-sale systems are secure and that they are following all relevant security protocols.

If a merchant receives a chargeback with this reason code, they should promptly respond with all relevant documentation and evidence to support the legitimacy of the transaction. This may include receipts, signed transaction records, and any other relevant information that can help establish the validity of the charge.

2. Fraud - Card Not Present - 20

Fraud - Card Not Present - 20 is an American Express Chargeback Reason Code that refers to cases where a fraudulent transaction occurs when the cardholder's physical card is not present. This typically occurs in online or over-the-phone transactions, where the card number is manually entered or saved on file.

Merchants may receive a chargeback with this reason code if American Express determines that the transaction was not authorized by the legitimate cardholder. The chargeback may also occur if the merchant did not take sufficient steps to verify the cardholder's identity or prevent fraudulent transactions.

To avoid chargebacks related to Fraud - Card Not Present - 20, merchants should implement fraud prevention measures such as address verification, CVV verification, and identity verification for high-risk transactions. They should also keep detailed records of customer communications, order information, and transaction details to provide evidence in case of a chargeback dispute.

3. Card Not Present - 30

Card Not Present - 30 is an American Express Chargeback Reason Code that merchants may encounter when a customer disputes a transaction made without the physical presence of their credit card. This usually occurs in e-commerce transactions or in situations where the customer provides their card information over the phone or via mail order.

The customer may initiate this chargeback reason code if they claim that they did not authorize or participate in the transaction, or if they did not receive the goods or services as described. In such cases, American Express may require the merchant to provide documentation to support the validity of the transaction, such as a signed order form or evidence of the goods being shipped to the customer.

It's important for merchants to take measures to reduce the risk of chargebacks associated with Card Not Present - 30. This includes verifying the customer's identity and billing information, and obtaining the necessary authorizations and approvals before processing the transaction. Merchants should also ensure that they have a clear refund and return policy in place, and promptly respond to any customer inquiries or concerns.

4. Not as Described or Defective Merchandise - 53

Not as Described or Defective Merchandise - 53 is a common American Express Chargeback Reason Code that merchants and e-commerce sellers should be aware of. This reason code is typically used when a customer receives a product that is not as described or defective in some way.

To avoid this type of chargeback, it's important for merchants and e-commerce sellers to provide accurate and detailed descriptions of their products on their websites. This includes providing clear images and specifications, as well as any relevant information about the product's condition, features, and functionality.

If a customer does receive a product that is not as described or defective, merchants should be prepared to offer a resolution that meets the customer's needs. This might include offering a refund or replacement or working with the customer to find another solution.

5. Cancelled Recurring Billing - 71

Cancelled Recurring Billing - 71 is an American Express Chargeback Reason Code that merchants and e-commerce sellers should be aware of. This code is used when a cardholder cancels a recurring transaction but is subsequently billed again by the merchant.

If a customer cancels a recurring transaction, the merchant must stop charging the customer's card. If the merchant continues to bill the customer, the customer may file a chargeback with American Express under Reason Code 71.

To avoid chargebacks under Reason Code 71, merchants should ensure that they have processes in place to stop recurring transactions when a customer cancels. Merchants should also ensure that they have clear cancellation policies and procedures and that they communicate these to customers.

If a chargeback is filed under Reason Code 71, merchants have the opportunity to dispute the chargeback by providing evidence that they stopped charging the customer's card after the cancellation request was received. It's important for merchants to respond promptly and thoroughly to chargebacks to increase their chances of success in the dispute process.

6. Credit Not Processed - 85

"Credit Not Processed - 85" is an American Express Chargeback Reason Code that occurs when a card member claims that they returned an item for credit, but the credit was not processed by the merchant.Ā 

In other words, the cardmember claims that they are entitled to a credit for returned merchandise, but the merchant did not provide the credit as promised. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued.

Ā If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback.

7. Duplicate Processing - 81

American Express Chargeback Reason Code 81, Duplicate Processing, is used when a merchant processes the same transaction twice, resulting in the cardholder being charged twice for the same purchase.Ā 

This can occur due to technical errors, system glitches, or human error. When a cardholder notices a duplicate charge on their statement, they may initiate a chargeback to request a refund for the duplicate charge.Ā 

As a merchant or e-commerce seller, it's important to ensure that your payment processing systems are functioning properly and that your staff is trained to avoid duplicate processing errors to minimize the risk of chargebacks due to this reason code.

8. Late Presentment - 83

Late Presentment (Chargeback Reason Code 83) is a type of chargeback issued by American Express when a merchant fails to submit a transaction for processing within a specific timeframe.Ā 

This could be due to a variety of reasons, such as technical issues, human error, or delays in shipping or receiving goods. Late Presentment chargebacks can be costly for merchants, as they may result in the loss of revenue and damage to their reputation.Ā 

To avoid Late Presentment chargebacks, it is essential for merchants to ensure that all transactions are submitted for processing in a timely manner and to maintain proper documentation to support their transactions.

9. Non-Receipt of Merchandise - 90

American Express Chargeback Reason Code 90 is "Non-Receipt of Merchandise." This chargeback reason code is used when a cardholder claims that they did not receive the merchandise that they purchased. This could be due to a variety of reasons, such as the merchandise being lost in transit, stolen, or not shipped by the merchant.Ā 

If you receive a chargeback with reason code 90, it's important to gather all relevant documentation to prove that the merchandise was shipped and received by the cardholder. This could include proof of delivery, shipping records, and communication with the cardholder. If you are unable to provide sufficient evidence, you may be liable for the chargeback amount.

As a merchant or e-commerce seller, it's important to ensure that you have a reliable shipping and tracking system in place to prevent chargebacks related to non-receipt of merchandise. Providing excellent customer service and promptly addressing any concerns or issues with shipping can also help prevent chargebacks and maintain customer satisfaction.

10. Services Not Rendered - 93

"Services Not Rendered - 93" is an American Express Chargeback Reason Code that merchants should be aware of. This code is used when a cardholder claims that they did not receive the services they paid for. This can occur if the merchant fails to deliver the promised services or if the services were delivered but were not as described.Ā 

To avoid this chargeback reason code, merchants should ensure that they accurately describe the services they are offering and deliver them as promised. If a dispute arises, merchants should be prepared to provide documentation and evidence to prove that the services were delivered as described. It's important to address these chargeback disputes promptly to avoid potential financial losses and damage to your reputation as a merchant.

11. Unauthorized Card Use - 82

Unauthorized Card Use - 82 is an American Express Chargeback Reason Code that merchants and e-commerce sellers should be aware of. This reason code is typically used when a cardholder claims that they did not authorize a transaction on their American Express card.

If you receive an Unauthorized Card Use - 82 chargebacks, it's important to review the transaction details and verify that the cardholder did not authorize the transaction. If you have evidence that the transaction was indeed authorized by the cardholder, you can dispute the chargeback with American Express.

To avoid Unauthorized Card Use chargebacks, it's important to have strong fraud prevention measures in place, such as verifying the cardholder's identity and ensuring that the billing and shipping addresses match. If you do receive an Unauthorized Card Use chargeback, be sure to respond promptly and with all necessary evidence to support your case.

12. Incorrect Transaction Amount or Account Number - 13

Chargeback reason code 13, "Incorrect Transaction Amount or Account Number," occurs when the transaction amount or account number presented by the merchant does not match the actual amount or account number authorized by the cardholder. This can happen due to a variety of reasons, such as a processing error or a typo.

If you receive a chargeback with reason code 13, it's important to review the transaction details and ensure that the correct amount and account number were used. If there was an error, you may be able to resolve the issue with the cardholder directly or through the payment processor.

As with all chargeback reason codes, it's important to take steps to prevent future occurrences of this type of chargeback by verifying transaction details before submitting them for authorization.

13. Credit Not Processed ā€“ Not as Described or Defective Merchandise - 75

"Credit Not Processed ā€“ Not as Described or Defective Merchandise - 75" is an American Express chargeback reason code that indicates the cardholder did not receive the product or service that was promised, or that the received product or service was defective.Ā 

If a merchant fails to provide a refund or credit to the cardholder's account after they have returned the merchandise or cancelled the service, the cardholder may file a chargeback under this reason code.Ā 

Merchants should ensure that they accurately describe their products or services and handle any customer complaints or issues promptly to avoid chargebacks under this reason code.

14. No Authorization - 43

"No Authorization - 43" is an American Express chargeback reason code that indicates the cardholder did not authorize the transaction. This could occur if the card was lost or stolen, or if the transaction was made without the cardholder's consent or knowledge.Ā 

Merchants and e-commerce sellers should ensure that they obtain proper authorization for all transactions to avoid chargebacks under this reason code.Ā 

In cases where the cardholder claims they did not authorize the transaction, the merchant may be required to provide documentation demonstrating that authorization was obtained.

15. Invalid Card Number - 14

"Invalid Card Number - 14" is an American Express Chargeback Reason Code that indicates that the card number provided by the merchant is incorrect or invalid.Ā 

This chargeback reason code may occur if the merchant accidentally or intentionally enters an incorrect card number or if the card number has been entered incorrectly during the transaction process. It is important for merchants to double-check the card number before processing a transaction to avoid chargebacks due to an invalid card number.Ā 

If you receive an "Invalid Card Number - 14" chargeback, you should ensure that the card number is correct and attempt to resolve the issue with the card issuer or cardholder if possible.

16. Invalid Merchant Category Code (MCC) - 17

"Invalid Merchant Category Code (MCC) - 17" is an American Express chargeback reason code that occurs when a merchant's transaction is not classified under the correct Merchant Category Code (MCC).Ā 

MCC codes are used to categorize businesses based on the products or services they offer. When a transaction is not properly classified, it can lead to confusion and potentially fraudulent activity.Ā 

If you receive a chargeback with this reason code, it's important to review your MCC classification and ensure that it accurately reflects your business. By doing so, you can help prevent future chargebacks and maintain a positive relationship with American Express.

17. Declined Authorization - 05

"Invalid Merchant Category Code (MCC) - 17" is an American Express chargeback reason code that occurs when a merchant's transaction is not classified under the correct Merchant Category Code (MCC).Ā 

MCC codes are used to categorize businesses based on the products or services they offer. When a transaction is not properly classified, it can lead to confusion and potentially fraudulent activity.Ā 

If you receive a chargeback with this reason code, it's important to review your MCC classification and ensure that it accurately reflects your business. By doing so, you can help prevent future chargebacks and maintain a positive relationship with American Express.

18. Credit Not Processed ā€“ Other Reasons - 86

Chargeback Reason Code 86, "Credit Not Processed ā€“ Other Reasons," is used when a cardholder did not receive a credit for a transaction that was refunded or canceled, but the reason for the credit not being processed is not related to any of the other specific chargeback reason codes.

This reason code may occur due to technical errors or system malfunctions on the merchant's end, or due to delays or issues with the payment processor or bank. In such cases, the cardholder may file a chargeback to recover the funds.

To avoid chargebacks related to Reason Code 86, merchants should ensure that refunds and cancellations are processed accurately and promptly. They should also maintain open communication with their payment processor or bank to address any technical issues or delays in processing credits.

FAQs:

Average Dispute Amount
Average Dispute Amount
$
30
# Disputes Per Month
# Disputes Per Month
#
50
TimeĀ Spent Per Dispute
TimeĀ Spent Per Dispute
M
20
calculation
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ā€$500,000 and save
ā€1,000 hours every month with Chargeflow!
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