American Express chargeback reason codes are a collection of identifiers used to classify different chargeback situations, reflecting the disputes raised by cardholders against sellers. These codes are vital for organizing disputes and determining the necessary next steps.

Each chargeback is assigned a unique 3-digit alphanumeric code by Amex, pinpointing the reason for the dispute. Each major card network, like Amex as well as Visa and Mastercard, have their own specific sets of these codes. For merchants, these codes are crucial, as they help identify common problems that result in chargebacks and highlight unfounded claims that need the merchant’s attention.

Purpose of Amex Chargeback Reason Codes

The main role of Amex chargeback reason codes is to create a consistent language and framework for identifying, discussing, and resolving disputes between cardholders and merchants. These codes serve as an important guide for understanding the key drivers behind each chargeback.

Given that chargebacks can result in substantial expenses for both merchants and card issuers, utilizing a cohesive set of reason codes streamlines the management and resolution of these challenges. This standardization enables quicker identification of the issues at hand and allows merchants to take proactive steps to prevent future chargebacks.

List of Amex Chargeback Reason Codes: By Category

The list of Amex chargeback reason codes can be divided into a few different subgroups. We’ve outlined these below:

Authorization

• A01 — Charge amount exceeds authorization amount

• A02 — No valid authorization

• A08 — Authorization approval expired

Cardmember Dispute

• C02 — Credit not processed

• C04 — Goods / services returned or refused

• C05 — Goods / services canceled

• C08 — Goods / Services Not Received or Only Partially Received

• C14 — Paid by Other Means

• C18 — “No Show” or CARDeposit Canceled

• C28 — Canceled Recurring Billing

• C31 — Goods / Services Not as Described

• C32 — Goods / Services Damaged or Defective

• M10 — Vehicle Rental – Capital Damages

• M49 — Vehicle Rental – Theft or Loss of Use

Fraud

• FR2 — Fraud Full Recourse Program

• FR4 — Immediate Chargeback Program

• FR6 — Partial Immediate Chargeback Program

• F10 — Missing Imprint

• F14 — Multiple ROC’s

• F24 — No Cardmember Authorization

• F29 — Card Not Present

• F30 — EMV Counterfeit

• F31 — EMV List / Stolen / Non-received

Inquiry / Miscellaneous

• R03 — Insufficient Reply

• R13 — No Reply

• M01 — Chargeback Authorization

Processing Errors

• P01 — Unassigned Card Number

• P03 — Credit Processed as Charge

• P04 — Charge Processed as Credit

• P05 — Incorrect Charge Amount

• P07 — Late Submission

• P08 — Duplicate Charge

• P22 — Non-Matching Card Number

• P23 — Currency Discrepancy

The Reason Code Is Not Always Correct

Chargeback reason codes serve to alleviate ambiguity and streamline the decision-making process. By implementing these codes, all stakeholders can easily grasp the reasons behind a chargeback.

Issuing banks are not obligated to explain their decisions, while acquiring banks and merchants benefit from a clearer understanding of the documentation required for representment. This seems logical, but the complication arises from the fact that not all chargebacks are justified.

These codes are valuable in identifying processing errors, merchant-related fraud, and other legitimate reasons for disputes. However, research indicates a rising trend of chargebacks being filed for reasons that do not correspond with the assigned codes. Genuine complaints, such as buyer’s remorse, fraud by family members, or issues with non-returnable items, do not have suitable chargeback codes. Consequently, customers may attempt to bypass this limitation by incorrectly claiming that the transaction was fraudulent, a practice known as “friendly fraud.”

While friendly fraud can sometimes result from mistakes or misunderstandings, many merchants regard it as an attempt to acquire items or services without payment. This behavior is akin to shoplifting.

Plus, even if a merchant’s actions are unrelated to the specific cause of the chargeback, they can only contest the chargeback based on the assigned code. Once reason codes are allocated by issuing banks, changing them retroactively is rare, even when new evidence emerges. While there can be occasions where disputing and overturning these decisions is successful, achieving a reversal of a chargeback remains a secondary goal.

Bottom line: merchants continue to invest time and resources into contesting chargebacks and face associated fees, regardless of the outcome.