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What Is The American Express Chargeback Reason Code C18 – “No Show” or CARDeposit Cancelled
American Express chargeback reason code C18 – “No Show” or CARDeposit Cancelled is used when a cardholder disputes a charge because they were billed for a reservation they canceled or didn't show up for, even though they believe they followed the cancellation policy. This often happens with hotel bookings or car rentals. If you're a merchant dealing with this chargeback, you'll need to review your records, gather proof of the reservation details, your cancellation policy, and any communication with the customer, and submit this evidence to American Express. The resolution process typically takes about 40 to 60 days, ensuring a fair review of the situation.
Common Causes Of American Express' C18 – “No Show” or CARDeposit Cancelled
No Show: The cardholder did not show up for a reservation and was charged a no-show fee, but they claim they canceled the reservation within the allowed timeframe.
Cancellation Policy Misunderstanding: The cardholder may not have understood the merchant’s cancellation policy or believes they followed it correctly but were still charged.
Deposit Canceled: The cardholder canceled a deposit for a reservation or service but did not receive a refund.
Example Scenario of C18 – “No Show” or CARDeposit Cancelled
Imagine you run a hotel, and a guest makes a reservation but does not show up. According to your policy, a no-show fee is charged. Later, the guest disputes the charge, claiming they canceled the reservation within the allowed timeframe. American Express initiates a chargeback under reason code C18 – “No Show” or CARDeposit Cancelled.
To handle this, you would review your reservation and cancellation records, gather any confirmation of the cancellation (or lack thereof), and submit this evidence to American Express. If the guest canceled within the allowed timeframe, you would process the refund and provide proof of this action.
Resolution Time Frame for American Express Chargeback Reason Code C18 – “No Show” or CARDeposit Cancelled
The resolution time frame for American Express chargeback code C18 – “No Show” or CARDeposit Cancelled typically follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction because they were charged for a “no show” or a canceled deposit, 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 reservation confirmations, cancellation records, the merchant’s cancellation policy, and any communication with the cardholder.
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 cardholder did not cancel within the allowed timeframe or that the no-show charge was justified according to the policy, the chargeback may be reversed. If the evidence supports the cardholder’s claim that they canceled appropriately, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code C18 – “No Show” or CARDeposit Cancelled
To minimize these disputes, consider these proactive measures:
Clear Cancellation Policies: Ensure your cancellation and no-show policies are clear, easily accessible, and communicated to customers at the time of booking.
Prompt Communication: Confirm cancellations and refunds promptly with customers and provide them with written confirmation.
Accurate Records: Maintain accurate records of all reservations, cancellations, and communications with customers to quickly verify and resolve any disputes.
How to Fix Chargeback Reason Code C18 – “No Show” or CARDeposit Cancelled
If you receive a chargeback under code C18, here’s what you should do:
Review the Transaction: Verify your records to confirm the details of the reservation, the cancellation policy, and whether the cardholder canceled within the allowed timeframe.
Gather Documentation: Collect all relevant documents that support your case. This might include the reservation confirmation, cancellation records, your cancellation policy, and any communication with the cardholder.
Submit Evidence: Provide this evidence to American Express promptly. Clearly explain the situation and provide documentation showing that the cardholder did not cancel within the allowed timeframe or that the no-show charge was justified according to your policy.
Resolve the Issue: If you find that the charge was applied in error or that the cardholder did cancel within the allowed timeframe, process the refund immediately and provide proof of this action to American Express and the customer.
