Ben Herut
Director of Risk
Table of contents

Picture this: It’s a busy day in your online store. Orders are flooding in, and everything seems to be going smoothly until a customer reaches the checkout page. They’ve entered their card details, but there’s a hitch—the Card Identification Number (CID) doesn’t match the records. Frustrated, they try again, and again, and then... they abandon the cart. You’ve lost a sale and potentially a repeat customer. But, as of April 2024, a significant change by American Express (AMEX) has made these scenarios a thing of the past. This policy shift has transformed the way merchants handle Card-Not-Present (CNP) transactions, offering a smoother experience for both merchants and customers. Let’s dive into what this means for you and how you can get ready.

Policy Change Overview

As of April 2024, AMEX no longer issues fraud chargebacks for authorized CNP transactions when the CID doesn’t match the records. This change is more than a simple policy tweak; it’s a game-changer for how merchants handle online transactions. For the nitty-gritty details, refer to the AMEX factsheet.

Source: AMEX

Background: The Previous CNP Transaction Process

Imagine the journey of a CNP transaction. Your customer is miles away, perhaps sipping coffee in a cozy café, while their order zooms through cyberspace to your server. The CID, a four-digit security code on the front of the card, acts as a gatekeeper, ensuring the person making the purchase is indeed the cardholder. Previously, if the CID didn’t match, merchants like you had to ask customers to re-enter it. This extra step often led to frustration, abandoned carts, and lost sales. Worse yet, if the transaction went through and turned out to be fraudulent, the merchant bore the brunt of the chargeback.

Details of the New Policy

Now, under the new policy, when you receive a CNP authorization response, it will still tell you if the transaction is approved and whether the CID matches. The twist? You can now proceed with approved transactions even if the CID doesn’t match, without fearing a fraud chargeback. The responsibility for these chargebacks has shifted from you (dear merchant) to AMEX, freeing you from a significant burden.

Benefits of the Policy Change

  1. Fraud Chargeback Protection

Imagine not having to constantly look over your shoulder for fraud chargebacks. With this new protection, you can confidently submit transactions with CID mismatches, knowing you’re shielded from the financial and administrative headaches of chargeback disputes.

  1. Increased Sales Potential

Remember the sales you’ve lost due to those dreaded CID re-entry prompts? With this policy, those abandoned carts could transform into completed sales, boosting your profitability. Your customers will appreciate the seamless experience and may be more likely to return.

  1. Improved Customer Experience

Think of a checkout process so smooth, that your customers glide through it effortlessly. No frustrating re-entries, no abandoned carts—just happy customers who are more likely to come back and shop with you again and again.

Post-Policy Implementation: Steps for Merchants

Updating Payment Technology:

It’s time to give your point-of-sale systems a little makeover. Update them to accept CID mismatches and remove those annoying re-entry prompts. This simple change can significantly enhance your customer’s journey.

Ensuring Compliance:

Reach out to your point-of-sale providers or payment processors. They’ll guide you through the necessary steps to align with the new policy. The sooner you adapt, the sooner you can start reaping the benefits.

Previous vs. Current and Future Liability

Previous Liability (Before April 2024)

Remember the days when a CID mismatch meant you were on the hook for fraud chargebacks? The financial risk and administrative load were yours to bear.

Current and Future Liability (Post-April 2024)

Fast forward to April 2024 and beyond, where AMEX shoulders the responsibility for these chargebacks. This shift allows you to focus on what you do best—growing your business—without the constant worry of chargebacks from authorized transactions.

How Chargeflow Can Help

Enter Chargeflow, your ally in navigating these changes. Chargeflow’s tools and services are designed to help you adapt seamlessly:

  1. Automated Dispute Management: Minimize the risk and hassle of chargeback disputes. Chargeflow’s automated system reduces the manual effort required, ensuring disputes are handled swiftly and efficiently, saving you time and resources.
  2. Advanced Fraud Detection and Prevention: Stay ahead of fraudsters with cutting-edge mechanisms. Our advanced fraud detection tools help identify suspicious activities early, protecting your business from unauthorized transactions and reducing the risk of chargebacks.
  3. Real-Time Analytics and Reporting: Keep a finger on the pulse of your transactions and fraud trends. Chargeflow offers comprehensive analytics and reporting tools that provide real-time insights into your transaction data, allowing you to monitor fraud trends, track chargeback patterns, and make informed decisions to safeguard your revenue.
  4. Seamless Integration: Easily integrate Chargeflow with your already existing payment systems, for a smooth transition from your traditional approach without interruption of your performance. Such integration allows your to enhance your processes while focusing on your core business activities. 
  5. Improved Win Rates: Benefit from Chargeflow's proficiency and advanced algorithms to optimize your chargeback response strategies. Our system exponentially improves your win rate in disputes – which in turn secures your income and shrinks your financial losses.

With Chargeflow's powerful suite of features you can easily manage the new AMEX policy change and protect your business without disrupting your current operations.


The new AMEX policy change has brought significant benefits to merchants. It promises fraud chargeback protection, increased sales potential, and an improved customer experience. To make the most of this opportunity:

  1. Update your systems to be compliant with the new policy: Be sure your payment technology can handle CID mismatches and remove disciplines for a re-entry prompt.
  2. Utilize Chargeflow’s tools to navigate these changes smoothly: Chargeflow’s automated dispute management, advanced fraud detection, real-time analytics, and seamless integration help you adapt efficiently.

Chargeflow is committed to your success, providing the tools you need to manage the new AMEX policy change and protect your business. Embrace these changes and watch your business thrive!


Average Dispute Amount
Average Dispute Amount
# Disputes Per Month
# Disputes Per Month
Time Spent Per Dispute
Time Spent Per Dispute
You could recover
$500,000 and save
1,000 hours every month with Chargeflow!
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