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What Is The American Express Chargeback Reason Code C05 – Goods / Services Cancelled
American Express chargeback reason code C05 – Goods / Services Cancelled is used when a cardholder disputes a transaction because they canceled an order or service but didn’t get a refund. This can happen if they canceled a product order before it shipped or canceled a service like a subscription but never saw the credit on their account. If you're a merchant dealing with this chargeback, you need to check your records, gather proof of the cancellation and any refunds issued, and submit this evidence to American Express. The resolution process usually takes about 40 to 60 days, ensuring everything is reviewed thoroughly and fairly.
Common Causes Of American Express' C05 – Goods / Services Cancelled
Order Cancellations: The cardholder canceled an order for goods before they were shipped, but the refund was not processed.
Service Cancellations: The cardholder canceled a service, such as a subscription or reservation, but did not receive the promised refund or credit.
Non-Refundable Policies: The cardholder may have been unaware of non-refundable policies, leading to a dispute when they do not receive a refund after cancellation.
Example Scenario of C05 – Goods / Services Cancelled
Imagine you run a travel agency, and a customer cancels a hotel booking but does not receive the promised refund. The customer contacts American Express and disputes the charge under reason code C05 – Goods / Services Cancelled.
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 C05 – Goods / Services Cancelled
The resolution time frame for American Express chargeback code C05 – Goods / Services Cancelled typically follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction because they canceled goods or 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 cancellation confirmations, 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 cancellation 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 C05 – Goods / Services Cancelled
To minimize these disputes, consider these proactive measures:
Clear Cancellation Policies: Ensure your cancellation and refund policies are clear, communicated to customers, and followed correctly by your staff.
Prompt Refunds: Process cancellations and refunds promptly to avoid delays that might lead to disputes.
Accurate Records: Maintain accurate records of all cancellations, refunds, and communications with customers to quickly verify and resolve any disputes.
How to Fix Chargeback Reason Code C05 – Goods / Services Cancelled
If you receive a chargeback under code C05, here’s what you should do:
Review the Transaction: Verify your records to confirm whether the goods or services were canceled and if a refund was promised. Check for cancellation logs, communication with the cardholder, and any related documentation.
Gather Documentation: Collect all relevant documents that prove the cancellation was handled according to your policies. This might include cancellation confirmations, 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 cancellation 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.
