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For any e-commerce store owner, the experience of both generating sales and managing transactions can be complex. One particular issue you may come across is American Express Reason Code C08. 

Understanding the root cause of this issue, as well as accurately fixing it to retain customers requires keeping up with regulations and requirements specific to each payment card type. In order to make sure that your store is compliant and running smoothly post-transaction, we’ve created this guide to American Express Reason Code C08—complete with all the information you need along with actionable steps for rectifying the situation. 

Keep reading for a deep dive into what exactly an American Express Reason Code is; how to avoid it; how to dispute them when issued; and best practices on how merchants should respond in order to manage customer experiences appropriately!

What is Reason Code C08?

American Express Reason Code C08, also known as "Cancelled Recurring," is a chargeback that occurs when a cardholder disputes a charge for a recurring subscription or membership that was canceled, but the merchant continues to bill the cardholder. This chargeback can be initiated by the cardholder for up to 120 days after the transaction date.

The circumstances under which Reason Code C08 may be applied are specific and straightforward. If a cardholder cancels a subscription or membership with a merchant and subsequently receives a charge from that merchant for the canceled service, the cardholder has the right to dispute that charge through a Reason Code C08 chargeback.

For example, if a cardholder signs up for a monthly gym membership and cancels that membership after the first month, but the gym continues to charge the cardholder each month, the cardholder can dispute those subsequent charges through a Reason Code C08 chargeback.

It's important to note that Reason Code C08 chargebacks are not intended to punish merchants who inadvertently charge cardholders for canceled services. Rather, they are designed to protect cardholders from unauthorized charges and ensure merchants are held accountable for their billing practices.

How to Avoid Reason Code C08 Chargebacks?

Effectively avoiding American Express Reason Code C08 chargebacks is essential for merchants looking to maintain a healthy financial landscape and minimize the risk of disputes. To begin with, it is crucial for merchants to ensure accuracy and comprehensiveness in their transaction information. 

This entails providing a detailed and complete description of goods or services, accurate billing details, and transaction dates. Additionally, merchants should develop a clear and transparent return policy that is easily accessible to customers, both online and in-store. 

Prompt and proactive communication is key – engaging with customers to resolve any potential misunderstandings can prevent disputes and consequent chargebacks. Employing tools such as American Express's Fraud Protection Suite can provide valuable support in identifying high-risk transactions and preventing fraud. 

By implementing these practical tips, merchants can significantly reduce their vulnerability to Reason Code C08 chargebacks and foster a more secure transaction environment for all parties involved.

How to Dispute Reason Code C08 Chargebacks?

If a merchant receives a Reason Code C08 chargeback, they have the opportunity to dispute it by providing evidence that the cardholder was properly notified of the cancellation and that the recurring billing was stopped. To effectively dispute a Reason Code C08 chargeback, merchants should follow these steps:

  1. Review the Chargeback Details: When a Reason Code C08 chargeback is received, the merchant should carefully review the chargeback details to understand the reason for the dispute and what evidence will be required to support the merchant's case.
  2. Gather Evidence: The merchant should gather all documentation related to the canceled subscription or membership, including any cancellation notices sent to the cardholder, transaction records, and customer service logs. The evidence should clearly show that the cardholder was notified of the cancellation and that the recurring billing was stopped.
  3. Respond Promptly: Merchants have a limited amount of time to respond to chargebacks, so it's important to act quickly. The merchant should respond to the chargeback with all relevant documentation and a clear explanation of why the chargeback should be reversed.
  4. Follow Up: After submitting the dispute, the merchant should follow up with American Express to ensure that the dispute is being reviewed and that any necessary action is being taken.

To avoid Reason Code C08 chargebacks in the future, merchants should take steps to ensure that they are accurately tracking cancellations and that all billing is stopped promptly. Merchants should also ensure that their cancellation policies are clearly communicated to customers and that any necessary customer service resources are available to address cancellation issues.

Final Thoughts on American Express Reason Code C08

In conclusion, American Express Reason Code C08 affects merchants and customers alike. Understanding what it is and how to avoid and dispute the chargeback can help merchants stay on top of their chargeback management process. 

With the right solutions in place, merchants can prevent reason code c08 chargebacks from occurring in the first place. By employing strategies such as monitoring customer complaints and issuing prompt refunds, merchants can make sure that they’re taking every measure necessary to curb potential disputes. 

Also, having a reliable dispute resolution procedure in place is crucial for tackling disputes if they should arise. Chargeflow offers automated solutions designed to fight disputes and maximize your win rates in overturning them. So don't miss out - start leveraging Chargeflow incredibly effective auto-pilot solutions today and take control of your chargeback issued through various Reason Codes!


Why did I receive an American Express Reason Code?

American Express Reason Codes are used to indicate the reason for a dispute or chargeback. If a cardholder disputes a charge on their American Express card, the reason for the dispute will be identified by a Reason Code.

How do I interpret an American Express Reason Code?

Each American Express Reason Code is accompanied by a description that explains the reason for the dispute or chargeback. Merchants can use these descriptions to understand why a charge has been disputed and what documentation may be required to dispute the Reason Code.

How do American Express Reason Codes differ from Visa and Mastercard Reason Codes?

American Express Reason Codes are unique to American Express and are different from Visa and Mastercard Reason Codes. While the codes may cover similar issues, the requirements for disputing them may differ between the card networks.

American Express Reason Codes are unique to American Express and are different from Visa and Mastercard Reason Codes. While the codes may cover similar issues, the requirements for disputing them may differ between the card networks.

The most common American Express Reason Codes include: 4855 (Non-Receipt of Merchandise or Services), 4863 (Cardholder Does Not Recognize Transaction), and 4853 (Defective Merchandise or Services).

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