A Cardmember may dispute a transaction. We are here to make the process easy for you and also to minimise the number of chargebacks

How to reduce chargebacks

Here are four tips you can take to help lower the number of enquiries you receive and reduce the number of chargebacks:   

1. Always get an authorisation approval code      
a. Without it, it is very difficult to support your position if a Cardmember claims a transaction is fraudulent.   
2. Respond to enquiry letters on time      
a. If you wish to contest a Cardmember claim, you must send us supporting material that resolves the dispute by the date displayed on the enquiry letter.   
3. Follow Card acceptance procedures accurately      
a. Always get the Cardmembers name as it appears on the Card, the Card number, and expiry date. If the Cardmember is not present, verify the billing address with American Express.   
4. Pay special attention when taking orders by telephone, mail order or the internet      
a. If you accept such charges, the precise procedures outlined in the Merchant Agreement should be followed and a greater degree of caution should be exercised.

Types of Chargebacks

A chargeback is broadly defined as a financial deduction from your account.

A submission chargeback

Results from charges that could not be processed upon submission (e.g. an invalid account number or a non-American Express account)

Non-compliance chargeback

Issued when a charge does not meet the terms of your Card Acceptance Agreement and the Cardmember disputes the charge or it proves to be otherwise uncollectable.
  • Cardmember account number does not match any Cardmember file on our database.
  • Card was not imprinted or swiped at the time of sale.
  • Transaction was submitted 30 days or more after authorisation was received.
  • Duplicate processing.
  • The transaction did not have a valid authorisation approval code.
  • The record of the charge did not contain a signature.
  • Full magnetic stripe data was not provided.
  • Transaction was keyed into the terminal with no imprint.
  • Cardmember signature is an obvious misspelling of the name embossed on the Card.

Immediate chargeback

This chargeback may result from a Cardmember enquiry to us. In this case, we do not send an enquiry to you because we have sufficient information available in-house or from the Cardmember to resolve the dispute.

No-reply chargeback

This chargeback may also result from a Cardmember enquiry to us. In this case, we send an enquiry to you, but you do not reply within the required 21-day timeframe.

Insufficient reply chargeback

A non-compliance chargeback is issued when a Cardmember enquires about a charge and your reply to the enquiry does not adequately support your claim that the charge is valid.

Authorised chargeback

This chargeback occurs when a Merchant authorises American Express to chargeback the transaction identified in the enquiry.

Customer service chargeback

When a Cardmember enquires about a charge, American Express first attempts to research the claim using in-house documentation or the information provided by the Cardmember. If the Cardmembers claim is substantiated during this stage, an immediate chargeback is issued. No further clarification is required and no enquiry is sent to you. You can appeal an immediate chargeback if you prove the validity of the charge. Chargeback reversals are dependent upon several variables, including legal restraints.

If we send you an enquiry to help resolve the claim and you do not respond within the 21-day timeframe, or your response does not support your claim to the charge, then the chargeback will be implemented. We will accept requests to reverse chargebacks if these chargebacks are issued incorrectly.


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