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What Is The American Express Chargeback Reason Code C04 – Goods / Services Returned or Refused
American Express chargeback reason code C04 – Goods / Services Returned or Refused is used when a cardholder disputes a charge because they returned the goods or refused the services but didn't get a refund. This can happen if a customer sends back a product or cancels a service and the refund doesn't show up on their account. If you're a merchant dealing with this chargeback, you need to check your records, gather proof of the return or cancellation, and show that you processed the refund or credit as promised. The whole resolution process usually takes about 40 to 60 days, ensuring everything is reviewed fairly.
Common Causes Of American Express' C04 – Goods / Services Returned or Refused
Goods Returned: The cardholder returned the purchased goods to the merchant, but did not receive the promised refund or credit.
Services Refused: The cardholder did not receive the services they paid for and requested a refund or credit, but it was not processed.
Merchant Policies: The merchant’s return or refund policies were not followed correctly, leading to the cardholder disputing the transaction.
Example Scenario of C04 – Goods / Services Returned or Refused
Imagine you run an online electronics store, and a customer returns a defective item and requests a refund. Due to an oversight, the refund is not issued. The customer contacts American Express and disputes the charge under reason code C04 – Goods / Services Returned or Refused.
To handle this, you would review your transaction records, find that the refund was not processed, issue the refund immediately, gather the proof of the refund transaction, and submit this evidence to American Express to resolve the dispute.
Resolution Time Frame for American Express Chargeback Reason Code C04 – Goods / Services Returned or Refused
The resolution time frame for American Express chargeback code C04 – Goods / Services Returned or Refused typically follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction because they returned goods or refused services but did not receive a refund, American Express initiates the chargeback process. This usually happens shortly after the cardholder reports the issue.
Merchant Response Time: Once the chargeback is issued, the merchant is notified and given an opportunity to respond. American Express generally allows merchants up to 20 days to gather and submit evidence to support their case. This evidence might include return receipts, credit memos, transaction records, and any communication with the customer.
Review and Decision: After the merchant submits their evidence, American Express reviews the information provided. This review period typically takes around 20-30 days. During this time, American Express assesses the validity of the merchant’s evidence and determines whether the chargeback should be reversed or upheld.
Final Resolution: The entire process, from the initial dispute to the final decision, can take anywhere from 40 to 60 days. If the merchant’s evidence shows that the return or refusal was handled properly and the refund was issued, the chargeback may be reversed. If the evidence supports the cardholder’s claim that the refund was not processed, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code C04 – Goods / Services Returned or Refused
To minimize these disputes, consider these proactive measures:
Clear Return Policies: Ensure your return and refund policies are clear, communicated to customers, and followed correctly by your staff.
Prompt Refunds: Process returns and refunds promptly to avoid delays that might lead to disputes.
Accurate Records: Maintain accurate records of all returns, refunds, and communications with customers to quickly verify and resolve any disputes.
How to Fix Chargeback Reason Code C04 – Goods / Services Returned or Refused
If you receive a chargeback under code C04, here’s what you should do:
Review the Transaction: Verify your records to confirm whether the goods were returned or the services were refused. Check for return logs, communication with the cardholder, and any related documentation.
Gather Documentation: Collect all relevant documents that prove the return or refusal was handled according to your policies. This might include return receipts, credit memos, transaction records, and communication with the customer.
Submit Evidence: Provide this evidence to American Express promptly. Clearly explain the situation and provide documentation showing that the return or refusal was handled properly, or if there was an error, explain how it is being resolved.
Issue the Credit: If you find that the refund or credit was not processed or was processed incorrectly, issue the correct credit immediately and provide proof of this action to American Express and the customer.
