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What Is The American Express Chargeback Reason Code P23 – Currency Discrepancy
American Express chargeback reason code P23 – Currency Discrepancy is used when a cardholder disputes a charge because the amount billed is different from what they expected due to an issue with currency conversion. This can happen if the merchant billed in a different currency than agreed, or if there was an error in converting the amount. If you're a merchant dealing with this chargeback, you need to review your records, gather proof of the agreed currency and any conversion details, and submit this evidence 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' P23 – Currency Discrepancy
Incorrect Currency Conversion: The transaction amount may have been converted incorrectly from one currency to another, resulting in the cardholder being billed more or less than expected.
Wrong Billing Currency: The merchant might have billed the cardholder in a different currency than what was agreed upon at the time of the transaction.
Exchange Rate Issues: Fluctuations in exchange rates or incorrect application of exchange rates can lead to discrepancies in the billed amount.
Example Scenario of P23 – Currency Discrepancy
Imagine you run an online store that accepts international orders. A customer from Europe places an order, and the agreed currency for billing is euros. However, due to a system error, the customer is billed in US dollars, leading to a higher charge due to exchange rate differences. The customer notices this discrepancy and disputes the charge under reason code P23 – Currency Discrepancy.
To handle this, you would review your transaction records, gather evidence showing the agreed billing currency and the incorrect charge, and confirm the error. You would then issue a refund for the discrepancy or re-bill the transaction in the correct currency, gather proof of this action, and submit this evidence to American Express to resolve the dispute.
Resolution Time Frame for American Express Chargeback Reason Code P23 – Currency Discrepancy
The resolution time frame for American Express chargeback code P23 – Currency Discrepancy typically follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction due to a currency discrepancy, 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 transaction logs, sales receipts, invoices, 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 correct currency was used and the conversion was accurate, the chargeback may be reversed. If the evidence supports the cardholder’s claim of a currency discrepancy, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code P23 – Currency Discrepancy
To minimize these disputes, consider these proactive measures:
Accurate Currency Conversion: Ensure all currency conversions are accurate and based on up-to-date exchange rates.
Clear Communication: Communicate clearly with customers about the currency in which they will be billed and confirm this at the time of the transaction.
System Checks: Regularly check and maintain your payment processing systems to ensure they handle currency conversions and billing accurately.
How to Fix Chargeback Reason Code P23 – Currency Discrepancy
If you receive a chargeback under code P23, here’s what you should do:
Review Transaction Details: Verify the details of the disputed transaction, including the agreed-upon currency and the currency in which the cardholder was billed.
Gather Documentation: Collect all relevant documents that support your case. This might include transaction logs, sales receipts, invoices showing the agreed currency, and any communication with the cardholder.
Submit Evidence: Provide this evidence to American Express promptly. Clearly explain the situation and provide documentation showing the correct currency conversion or the agreed billing currency.
Resolve the Issue: If there was an error in billing or currency conversion, communicate with the cardholder to resolve the issue. This might include offering a refund for the discrepancy or re-billing the transaction in the correct currency.
