What Are the American Express Chargeback Time Limits for Merchants & Cardmembers?
As a merchant, it’s important to be aware of the American Express chargeback time limits. This way, you can be prepared in the event that a customer disputes a charge with their bank. The following is a breakdown of the chargeback timeline for American Express:
- Initial Dispute Period: A cardholder has 120 days from the date of the transaction to file a dispute with their bank.
- Investigation Period: Once a dispute is filed, American Express has up to 45 days to investigate and make a decision.
- Chargeback Period: If American Express decides in favor of the cardholder, the merchant has 10 days to respond. If the merchant does not respond, or if the response is not satisfactory, the funds will be refunded to the cardholder.
- Appeal Period: If the merchant disagrees with the chargeback decision, they can file an appeal. American Express has up to 30 days to review the appeal and make a decision.
Diffrent Types of American Express Chargebacks
There are four different types of American Express chargebacks, each with their own time limits:
- Fraudulent Transactions: A cardholder has 120 days from the date of the transaction to file a dispute.
- Authorized Users: A cardholder has 120 days from the date of the transaction to file a dispute.
- Item Not Received: A cardholder has 120 days from the date of the transaction to file a dispute.
- Quality Issues: A cardholder has 1 year from the date of the transaction to file a dispute.
It’s important to note that these time limits are for the cardholder to file a dispute with their bank. American Express may investigate disputes that are filed outside of these time limits, but they are not obligated to do so.
Why Are American Express Chargebacks Unique?
There are a few things that make American Express chargebacks unique:
- First, American Express has a “zero liability” policy for fraudulent charges. This means that cardholders are not responsible for any charges that they did not authorize.
- Second, American Express offers a “dispute mediation” service to help resolve disputes between merchants and cardholders. This service is available for disputes that are within the 120-day time limit.
- Finally, American Express has a “chargeback monitoring” program to help identify and prevent fraud. This program is designed to protect merchants from repeat chargebacks.
If you are a merchant who accepts American Express cards, it’s important to be aware of these chargeback time limits. By understanding the chargeback process, you can be prepared in the event that a customer disputes a charge.
How to Prevent American Express Chargebacks?
There are a few things that you can do to prevent American Express chargebacks:
- First, make sure that you have clear and concise policies in place regarding returns, refunds, and cancellations. Make sure that these policies are prominently displayed on your website and in your terms and conditions.
- Second, keep good records of all transactions, including the date, time, amount, and type of purchase. If a cardholder disputes a charge, you will need to provide American Express with this information.
- Third, make sure that your employees are trained on your policies and procedures. They should know how to handle transactions and how to deal with customer complaints.
- Fourth, consider using fraud prevention tools, such as AVS and CVV2 verification. These tools can help to prevent fraudsters from using stolen credit cards.
By following these tips, you can minimize the risk of American Express chargebacks. If a chargeback does occur, you will be prepared with the information and documentation that you need to defend yourself.