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What Is The American Express Chargeback Reason Code C28 – Cancelled Recurring Billing
American Express chargeback reason code C28 – Cancelled Recurring Billing is used when a cardholder disputes a charge because they had canceled a recurring service, like a subscription or membership, but still got billed. If you're a merchant dealing with this chargeback, you need to check your records to see if the cancellation request was received and processed correctly. Gather all relevant documents, such as cancellation confirmations and billing records, and submit them to American Express. The whole process usually takes about 40 to 60 days to resolve, ensuring everything is reviewed thoroughly and fairly.
Common Causes Of American Express' C28 – Cancelled Recurring Billing
Subscription Services: The cardholder may have canceled a subscription to a service, such as a streaming service or a magazine, but still sees charges on their card.
Memberships: The cardholder may have canceled a membership, such as a gym membership, but continued to be billed.
Other Recurring Payments: Any other recurring payment, like utility bills or software subscriptions, that the cardholder had canceled but was still charged for.
Example Scenario of C28 – Cancelled Recurring Billing
Imagine you run a monthly subscription box service, and a customer cancels their subscription. However, due to a system error, they are still billed for the next month’s box. The customer notices the charge and disputes it under reason code C28 – Cancelled Recurring Billing.
To handle this, you would review your records, find the customer’s cancellation request, and confirm the billing error. You would then issue a refund for the incorrect charge, gather proof of the refund, and submit this evidence to American Express to resolve the dispute.
Resolution Time Frame for American Express Chargeback Reason Code C28 – Cancelled Recurring Billing
The resolution time frame for American Express chargeback code C28 – Cancelled Recurring Billing generally follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a recurring charge because they canceled the service, 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 requests, communication logs, billing records, and any proof that the service or subscription was indeed canceled.
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 or that the cardholder did not follow the proper cancellation procedures, the chargeback may be reversed. If the evidence supports the cardholder’s claim that the cancellation was not processed and they were billed in error, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code C28 – Cancelled Recurring Billing
To minimize these disputes, consider these proactive measures:
Clear Cancellation Procedures: Ensure that your cancellation procedures are clear and easily accessible to customers. Provide confirmation of cancellations in writing.
Prompt Processing: Process cancellation requests promptly to avoid accidental charges after cancellation.
Accurate Records: Maintain accurate records of all cancellation requests and confirmations to quickly verify and resolve any disputes.
How to Fix Chargeback Reason Code C28 – Cancelled Recurring Billing
If you receive a chargeback under code C28, here’s what you should do:
Review the Transaction: Verify your records to confirm whether the cardholder requested the cancellation and whether it was processed correctly. Check for cancellation requests, communication logs, and billing records.
Gather Documentation: Collect all relevant documents that support your case. This might include the cardholder’s cancellation request, your acknowledgment of the cancellation, and any proof that the service or subscription was indeed canceled.
Submit Evidence: Provide this evidence to American Express promptly. Clearly explain the situation and provide documentation showing that the cancellation was handled properly or that the cardholder did not follow the proper cancellation procedures.
Refund if Necessary: If you find that the cancellation request was not processed correctly and the cardholder was charged in error, issue a refund immediately and provide proof of this action to American Express and the customer.
