» Processing Electronically
» Processing Manually
» Other Processing
» Submitting
» Chargebacks

Whether your business processes transactions in person, by mail, by phone, or online, below are six easy steps to processing all your American Express® transactions.

1. Verify that the person presenting the Card is the Cardmember.
   American Express Cards are not transferable. The Card can only be used by the person whose name is embossed on the front of the Card.
   
   
2. Check the Card's valid dates.
   Make sure the dates of the charge fall between the two dates embossed on the Card. If the Card is not valid, please call Authorizations at 1-800-268-9824 and speak to an authorizer for handling instructions.
   
   
3. Swipe the Card or take an Imprint of the Card.
   If you process your charges electronically, simply swipe the Card through the slot in your terminal. If you process on paper, take an imprint of the Card using a manual imprinter. Verify that the account number embossed on the front of the Card matches the number printed on the receipt or displayed on your terminal.
   
   
4. Obtain an Authorization Approval Code.
   By processing electronically, 100% of your charges are automatically routed for Authorization, helping you to reduce the risk of fraud. If you receive a "please call" message on your terminal, call Authorizations to obtain an approval code. Record the approval code on the record of charge.
   
   
5. Compare signatures.
   Verify that the signature on the Record of Charge or Credit matches the signature on the back of the Card. Make sure that it is the same name as that embossed on the front of the Card.
   
   
6. Return the Card and the Cardmember's copy of the Record of Charge or Credit to the Cardmember.

Processing American Express® Card transactions electronically is quicker for your business. Electronic processing can also help the accuracy of your transactions and reduce the chance of having forms completed incorrectly.

Simply swipe the Card through your terminal to request Authorization. If your existing terminal does not accept the American Express Card, your terminal provider can program them to do so, or call American Express at 1-800-268-9877. For more information on the latest terminals, click here.

To process Charges/Credit electronically, follow these easy steps:

• Before processing your first Charge or Credit, make sure your terminal is programmed to accept American Express Cards.
• Follow the detailed instructions in the handbook provided with your terminal.
• Your terminal must be able to generate forms containing all of the following information:
  
  • Authorization approval code number
  • Card account number and expiry date
  • Date of charge / credit
  • Amount of charge, which must be the total purchase price, including applicable taxes, tips, postage and shipping charges.
  • Acceptable description of the goods or services purchased or credited
  • Your establishment's name, address and American Express merchant number

Processing Credits Electronically

When a Cardmember returns merchandise or is owed a credit from your Establishment, never refund cash. Always issue a credit on the Card. A credit can only be issued to the same American Express Card account number that was actually used for the original purchase. Simply follow the instructions provided with your electronic terminal to generate a credit receipt and ensure the Cardmember then signs it. This receipt must also contain the following:

• Card account number
• Date credit was issued
• Amount of credit
• Establishment name, address and American Express Merchant Number

Note: If you receive a "please call" message on your terminal, call Authorizations at 1-800-268-9824 to obtain an approval code.

Troubleshooting Electronic Processing

Inoperable Terminal
If your American Express terminal is not working, make a manual imprint of the Card and obtain the Cardmember's signature. Obtain an Approval Code by telephoning the American Express Authorizations Line at 1-800-268-9824. When your terminal becomes operational, force capture the transaction using the Approval Code you were supplied over the phone (do not obtain a second Approval Code).

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To process transactions using paper forms, follow the directions below:

1. Check that the Card is not expired. Do not circle the date.
2. Imprint the Charge Record using your manual imprinter.
3. Fill in date of charge if your imprinter has not done so already.
4. Enter the total amount charged for merchandise or services.
5. Enter the tax amount.
6. Have the Cardmember fill in the tip amount, if applicable.
7. Enter the total.
8. Enter the Approval Code, if applicable.
9. Have the Cardmember sign the Charge Record and compare this signature with the one on the back of the Card.
10. Avoid making additional marks on the Record as this may delay payment.
11. Return the Card and Cardmember's copy of the Charge Record to the customer.

Processing Credits Manually

When a Cardmember returns merchandise or is due a credit from your Establishment, never refund cash. Always issue a credit to the Cardmember's account. A credit can only be issued to the same American Express Card account number that was actually used for the original purchase. Processing credits electronically produces less paperwork and reduces inaccuracies. However, if your Establishment processes manually, please follow the instructions below:

1. Imprint the Credit Record with the Cardmember's Card. If the Card is not available, carefully print the Cardmember's name and account number by hand.
2. Use a ballpoint pen to enter the date of the charge if available and the total amount of the credit. You may also wish to record a brief explanation of the credit.
3. Have the Cardmember sign the Credit Record if possible.
4. If the charge being refunded was made within seven days of the current date, call the Authorizations Line at 1-800-268-9824 and advise the representative that you wish to process a credit.
5. Return the Card and Cardmember copy of Credit Record to Cardmember. Keep your copy.
6. Submit Credit Records with a Credit Summary.

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Mail Order and Telephone Charges
To avoid the risk of fraud, precise procedures must be followed each time you accept a charge by mail order, telephone or the Internet. Remember to ask the Cardmember for:

• Name exactly as it appears on the Card
• Card account number
• Card valid dates
• Card billing address as well as the address where the merchandise is to be shipped (if different from the billing address)
• Home or business phone number
• Phone number where the Cardmember may be reached (if different from the home or business phone)

For each transaction, be sure to:

1. Complete a Charge Form including all required information.
2. Write "Telephone Order" or "Mail Order" as appropriate on the signature line of the Charge Form.
3. Call American Express Authorizations at 1-800-268-9824 for an Approval Code and request "Address Verification" to verify the billing address.

Estimated Charges ("Pre-Authorizations")
Some establishments may compute and submit charges before the final actual amount is known. In these cases, follow all normal processing procedures for the estimated amount.

When the final amount is determined, if the difference between that amount and the initial estimate is less than 15%, the charge may be submitted without obtaining an additional Approval Code. If the difference is greater than 15%, call the Authorizations Line at 1-800-268-9824 for an Approval Code. Check with your Card Acceptance Agreement for further details.

Delayed Charges
Some industries compute final charges after the customer has left. In these cases, the additional charges may be submitted by following the process below.

Electronic Submissions
Process a separate charge for the delayed amount following normal electronic processing procedures. Be sure an accurate description of the charge is recorded on the receipt.

Manual Submissions

1. Do not alter the original charge amount. Instead, fill in the additional charges in the designated Delayed Charge box on both the Service Establishment and American Express copies of the Charge Form.
2. Write in the type of charge (the more detail you give the less likely there will be a disputed charge).
3. Enter the revised total and submit as usual (do not cross out the original total).
4. If possible, send an itemization of the delayed charges directly to the Cardmember to reduce chances of a dispute.

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By submitting your American Express® transactions electronically, your business can benefit by:

• Less risk of chargebacks or fraud as each transaction is automatically routed for an Approval Code
• Greater submission accuracy and efficiency
• The opportunity to get paid faster

When submitting charges electronically, follow the instructions that came with your terminal. Retain your copies of the charges for two full years both for your own use and as support for all charges.

Do not mail in your Charge Slips if you have submitted them through a Point-Of-Sale (POS) terminal.

Important Reminder: Batching Out
Press the "Batch Out" key on your terminal at least once each day to transmit the American Express transactions you have processed. On busy days, you may need to batch out more than once per day. Consult your terminal handbook received in your Welcome Kit for more details regarding batching out.

For more information on submitting electronically, contact the POS Help Desk at 1-800-268-9877.

Important Note
If you have a terminal provided by another financial institution, it can be used to both process and submit your American Express charges. Simply contact the Point-of-Sale department of that institution to be quickly set up for American Express acceptance.

Submitting Manually
Please follow these procedures when submitting American Express transactions on paper.

1. Quickly review each Charge Form to make sure it includes all required information and that the Card account number, expiry date and Establishment Number are all legible.
2. Separate the Charge Forms from any Credit Records. Charges and credits cannot be submitted in the same envelope.
3. Remove the "Service Establishment" copies from the "American Express" copies. Retain the "Service Establishment" copies for your records.
4. Add up all of the American Express charges you have accumulated. Include no more than 100 Charge Records per Charge Summary. With a ballpoint pen, enter the number of Charge Forms you are submitting on the Charge Summary.
5. Total the dollar amount of all Charge Forms to be submitted. Double-check the addition and then enter this amount in the "Total of all charges" space on the Charge Summary. (Do not deduct discount fees from the total amount.)
6. Insert the yellow plastic Summary Card into your imprinter and use it to imprint your Charge Summary form. Check for legibility of your Establishment Number. The yellow plastic Summary Card is to be used for imprinting Summaries only. It is not a Charge Card and must not be accepted or used as a Charge Card.
7. Enter the mailing date.
8. Have an authorized representative of your Establishment sign the Charge Summary.

Submitting Credits Manually
To manually submit credits to American Express follow the same procedures as for manually submitting charges except use a Summary of Credit Record.

• Credit Summaries should be submitted at least weekly or more often if volume warrants
• Credits and charges cannot be submitted in the same envelope

Important Note
Canadian Currency: Please note that all American Express payments in Canada are made in Canadian currency. For this reason, all submissions must be in Canadian dollars.

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Chargeback Policies

A "chargeback" is broadly defined as a financial deduction from a merchant's account. Company policies and agreements between American Express and each Establishment are used to resolve disputes and to identify non-compliance chargebacks.

1. American Express recognizes the Merchant and the Cardmember as customers of equal value to American Express.
2. Our dispute and chargeback handling will be consistent with the provisions of our Card Acceptance Agreements.

Types of Chargebacks

Chargebacks can originate from a variety of sources:

Submission Chargeback – A submission chargeback results from charges that could not be processed upon submission. For example, an invalid account number or a non-American Express account.

Non-Compliance Chargeback – A non-compliance chargeback is issued when a charge does not meet the terms of the Card Acceptance Agreement and the Cardmember disputed the charge, or it proves to be otherwise uncollectible.

The Steps You Can Take to Reduce Chargebacks

American Express recognizes that chargebacks create work for your business. It takes time to respond to inquiries and having your account debited impacts your balance sheet.

We would like to suggest the following steps you can take to help avoid chargebacks:

1. Always get an Authorization Approval Code.
   Every transaction you accept requires an Authorization Approval Code prior to submission. (Note: If you have an operational POS terminal, all transactions must be processed through the terminal.)
2. Respond to Inquiry Letters on Time.
   An Inquiry Letter displays a date by which you must reply. If you wish to contest a Cardmember claim, you must send American Express support material that resolves the dispute by that date.
3. Follow Card Acceptance Procedures Accurately.
   Procedures to welcome American Express Cards are outlined in your Card Acceptance Agreement. Always get the Cardmember's name as it appears on the Card, the account number and expiration date and, for mail order or telephone transactions, verify the billing address with American Express.
4. Pay Special Attention when Taking Phone and Mail Order Charges.
   Accepting charges by telephone and mail order can involve a greater risk of fraud. Even if you only accept such charges occasionally, precise procedures should be followed and a greater degree of caution should be exercised.
5. Enroll in Online Merchant Services
   This is a convenient, complimentary and secure Internet business tool that can save you time and money by allowing you to eliminate paper reports, reconcile statements, receive instant notification of chargebacks and manage customer disputes efficiently. You can respond to customer disputes online - virtually eliminating "no-reply" chargebacks. See the handbook you received in your Welcome Kit for more details about this service. With Online Merchant Services (OMS), you have an even easier way to manage your American Express Merchant account. Click here to enroll.

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