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What Is The American Express Chargeback Reason Code C32 – Goods / Services Damaged or Defective
American Express chargeback reason code C32 – Goods / Services Damaged or Defective is used when a cardholder disputes a charge because the goods they received were damaged or defective, or the services provided were subpar. This could mean an item arrived broken, didn't work as expected, or a service wasn't completed properly. If you're a merchant dealing with this chargeback, you'll need to review your records, gather evidence like delivery receipts and customer communications, and submit this to American Express. The resolution process usually takes about 40 to 60 days, ensuring a fair review of the situation.
Common Causes Of American Express' C32 – Goods / Services Damaged or Defective
Damaged Goods: The item arrived broken, scratched, or in otherwise unacceptable condition.
Defective Products: The product does not work as intended, has significant flaws, or malfunctions shortly after use.
Substandard Services: The services provided were incomplete, poorly executed, or not up to the promised standard.
Example Scenario of C32 – Goods / Services Damaged or Defective
Imagine you run an online electronics store, and a customer buys a new laptop. When it arrives, the screen is cracked, and the customer disputes the charge under reason code C32 – Goods / Services Damaged or Defective.
To handle this, you would review your transaction records, gather evidence showing the condition of the laptop when it was shipped, and any communication with the customer. If the laptop was indeed damaged during shipping, you would offer a replacement or refund and provide proof of this action to American Express.
Resolution Time Frame for American Express Chargeback Reason Code C32 – Goods / Services Damaged or Defective
The resolution time frame for American Express chargeback code C32 – Goods / Services Damaged or Defective typically follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction due to receiving damaged or defective goods or substandard services, 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 delivery receipts, product specifications, service agreements, 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 goods or services were delivered as described or that the damage or defect was addressed satisfactorily, the chargeback may be reversed. If the evidence supports the cardholder’s claim that the goods or services were damaged or defective, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code C32 – Goods / Services Damaged or Defective
To minimize these disputes, consider these proactive measures:
Quality Control: Implement quality control measures to ensure that goods and services meet the expected standards before delivery.
Secure Packaging: Use secure and appropriate packaging to protect goods from damage during shipping.
Clear Communication: Communicate clearly with customers about what they can expect and address any concerns promptly.
Return and Refund Policies: Have clear return and refund policies in place and ensure customers are aware of them.
How to Fix Chargeback Reason Code C32 – Goods / Services Damaged or Defective
If you receive a chargeback under code C32, here’s what you should do:
Review the Transaction: Verify your records to confirm the details of the transaction, including what was delivered and any customer complaints regarding the damage or defect.
Gather Documentation: Collect all relevant documents that support your case. This might include delivery receipts, product specifications, service agreements, 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 goods or services were delivered as described, or that the damage or defect was addressed satisfactorily.
Resolve the Issue: If the goods were indeed damaged or defective, communicate with the cardholder to resolve the issue. This might include offering a replacement, a refund, or additional services to rectify the problem.
