American Express Chargebacks & Disputes – Merchant Guide

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When talking about chargebacks most of the discussion tends to revolve around the policies of Visa and Mastercard. Between the two of them, these card networks are responsible for most of the credit and debit tease transactions in the United States, and consequently most of the chargebacks adenine well. Their policies are besides broadly alike. When Visa makes major changes to their chargeback rules, Mastercard much follows befit in order to avoid causing confusion and alienating merchants .
Because so much of the stress is on Visa and Mastercard, however, merchants can sometimes find themselves going in blind when they receive a chargeback from another card network such as American Express. This can sometimes cause merchants to make major missteps when responding to a chargeback, since the way American Express handles disputes can differ from Visa and Mastercard in a number of ways. What do merchants need to know about American Express chargebacks, how to fight them, and how to prevent them from happening in the first base station ?
Because they carry higher substitute fees, not every merchant accepts American Express cards. Those that do are sometimes well reward, however, since American Express cardholders tend to make much larger purchases on average than those using Visa or Mastercard .
New call-to-action American Express has frequently targeted a more affluent segment of the population, offering a diverseness of perks for cardholders in exchange for charging higher fees than most credit cards.

Merchants who cater to a exchangeable customer foundation often accept American Express as a count of course, since many of their customers will carry those cards .
If you do accept American Express cards—or if you ’ ra considering it—it ’ s significant to learn how their challenge process works. The rules and processes can be different from those of the two largest card networks, and the best chargeback management scheme takes into account even the small quirks of how different card networks regale chargebacks .

How Are American Express Chargebacks Different?

There is one big, fundamental difference in the way American Express chargebacks work compared to other networks : American Express international relations and security network ’ thyroxine merely the menu network, it ’ sulfur besides the issuing bank .

While American Express recently started allowing sealed banks to issue American Express cards, much of the fourth dimension it acts as its own issuer. For better or worse, this frequently allows for a shorter, more streamline chargeback process .
American Express cardholders broadly have 120 days from the transaction date to dispute a tear, but this deadline can be extended for certain challenge categories, such as “ goods not received. ”

American Express limits cardholders to no more than two challenge filings per charge, so customers ca n’t abuse the chargeback system by filing the lapp challenge repeatedly .

The moment allowed dispute is intended to give a second gamble to customers who file a good-faith dispute without fully understanding what evidence is required to win. Since American Express chargebacks allow each party to submit testify entirely once, a cardholder who wants to submit extra testify must file a new dispute. This system does occasionally create extra shape for merchants who have to respond to the lapp quarrel doubly, however .
When a cardholder contacts American Express to dispute a charge on their account, one of two things will happen. Most of the time, when a cardholder has sufficient reason or testify that the blame was unauthorized, American Express will give them an immediate, upfront chargeback. If it ’ mho less clean that the cardholder has a valid call, American Express will send an question to the merchant .

How Do American Express Inquiries Work?

  • Accept the chargeback
  • Submit evidence proving that the charge is valid
  • Submit proof that they refunded the cardholder
  • Send no response

Merchants have 20 days to respond to an American Express dispute inquiry. They can take one of several actions : If the merchant accepts the chargeback or fails to respond with sufficient supporting evidence within 20 days, the chargeback will be granted, end of report. If they do provide tell, and if the issuer finds that tell sufficient to resolve the write out, a chargeback will not be filed .
The question process allows merchants a fair sum of prison term to review and respond to disputes. unfortunately, merchants may find that in practice, the inquiry process international relations and security network ’ thymine used all that much. It ’ s more coarse for cardholders to receive immediate chargebacks, and merchants who are considered “ gamey hazard ” or have been placed in chargeback monitor programs may be denied the inquiry gradation wholly .
On the other hand, American Express has made efforts in recent years to reduce the number of customer complaints that result in chargebacks .

As both poster network and issuing bank, American Express typically has access to more detail transaction information, and can provide that information to customers who call to dispute a charge they do n’t recognize .

This process is similar to programs offered by Visa and Mastercard and can prevent many unrecognized charge disputes from becoming chargebacks.

According to American Express, datum from 2019 showed a 63 % reduction in non-fraud disputes that were sent to merchants, as compared with 2016. The changes implemented over this meter period include the two dispute restrict per charge, the 120-day limit on filing a chargeback, the ability to provide cardholders with more data about unrecognized transactions, and reduce signature requirements .

Can Merchants Fight AMEX Chargebacks?

Merchants can and should fight American Express chargebacks, but it isn ’ thyroxine quite the same as the chargeback representment procedures they might be familiar with from dealing with Visa and Mastercard .

American Express doesn ’ t have a codify pre-arbitration or arbitration procedure. In early words, you get one shot to stop an American Express chargeback, thus make it count .
Download the eGuide, 4 Reasons to Hire a Chargeback Management Company In practice, an immediate chargeback international relations and security network ’ t all that different from an inquiry. The merchant still has 20 days to respond, and can get the chargeback reversed by providing sufficient documentary tell that the charge was valid and the cardholder doesn ’ deoxythymidine monophosphate have a legitimate claim .
American Express has its own set of chargeback reason codes, and they refer to situations that correspond to Visa and Mastercard rationality codes you may already be acquainted with. Merchants should review these codes, track which ones they receive, and respond to inquiries and chargebacks with the allow encouraging tell relevant to each code .
Remember, if you have already issued a refund or accredit over a transaction in quarrel, proof that you did so may be all the testify you need to provide .

Can You Prevent American Express Chargebacks?

Merchants can prevent American Express chargebacks in largely the same ways they prevent early chargebacks. Key methods include effective fraud prevention tools, great customer service, and exhaustive analysis of chargeback data to discover nameless issues .

American Express provides some cosmopolitan advice for merchants about how to avoid chargebacks, which should already be known to most merchants who ’ ve struggled with chargebacks in the past :

  • Inform customers about your return and refund policy
  • Make sure the business name that appears on card statements is recognizable
  • Follow all recommended security and authorization procedures (American Express provides various security tools, such as SafeKey, that can afford merchants some protection from true fraud chargebacks)
  • Keep thorough transaction records for at least 12 months.

American Express chargebacks may be handled differently than Visa or Mastercard chargebacks, but they happen for the same reasons. Prevention advice that works for one kind of chargeback will work for others .

The best way for merchants to develop a in truth effective chargeback prevention strategy is to analyze their chargeback data and identify the etymon causes that are responsible for the majority of their chargebacks .

This will show them what they need to address most urgently, whether it ’ randomness market copy that ’ s misleading customers, a refund policy that ’ s excessively restrictive, problems with your shipping methods, or whatever it might be. When you know what ’ s causing your chargebacks, you can address those problems directly, strengthening your business in the march .
Expanding the tilt of requital options you ’ ll take can help you acquire new customers and grow your business, but every new payment option opens up a fresh front in your battle against chargebacks. While many of the best preventive practices are cosmopolitan, you have to have specific cognition of the rules, time limits, and other critical elements of the quarrel work for every payment method acting you accept. differently, when chargebacks start coming in, you might not be in a estimable position to respond efficaciously .
Keeping track of all of these different rule-sets can be ambitious, so preceptor ’ t forget that you never have to face chargebacks alone. Companies like Chargeback Gurus can bring their expert cognition to bear on all types of chargebacks, helping you take whatever steps are necessary to protect your tax income and keep your chargeback rate down .

FAQ

How Long Do AMEX Disputes Take?

Most american Express disputes are resolved within a month, although there are occasions when a particularly complex character could take longer.

Why Do Merchants Hate American Express?

many merchants refuse to accept American Express cards because American Express charges higher transaction fees than other major menu brands like Visa and Mastercard. Since the merchant absorbs the cost of transaction fees, they make less profit from American Express purchases .

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Get the guide, Chargebacks 101: Understanding Chargebacks & Their Root Causes

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