When accepting payments through PbN Payments, understanding how American Express handles disputes and chargebacks is essential. Here’s a simple breakdown to guide you:
The American Express Dispute Process
Request for Information (RFI)
American Express starts by requesting more details about a disputed transaction.
You have 14 days to respond with supporting documents.
At this point, no funds are taken from your account, but failure to respond can lead to an uncontested chargeback.
Defense Requirements:
Supply your defense documents in one of the following file formats:JPG (maximum file size 10 MB)
TIFF (maximum file size 10 MB)
PDF (maximum file size 2 MB)
Dispute Defenses:
To strengthen your case, provide as much supporting information as possible, such as:A copy of the invoice.
Evidence of product/service delivery.
Proof of customer communication (e.g., email or chat transcripts).
Documentation showing the customer received the product/service and did not dispute it at the time of delivery.
A copy of your refund or return policy, if relevant.
Any evidence disproving the customer’s claim, such as proof the transaction was authorized.
Review of Submitted Information
Once you provide the documents, they are reviewed by American Express.
After submission, you can't make any changes to your response.
Notification of Chargeback (NoC)
If American Express proceeds, you’ll receive a NoC.
Your account isn’t debited yet, but it’s a sign that funds might be withdrawn unless your defense succeeds.
Chargeback Initiation
If the dispute isn’t resolved, your account is debited for the disputed amount.
You can still defend the chargeback during this stage, as long as the 14-day window hasn’t expired.
Final Review of Defense Documents
If American Express accepts your defense, the funds are returned.
If rejected, the chargeback stands, and the dispute is closed.
Chargeback Reversal
If successful, the chargeback is reversed, and the funds are credited back to your account.
Rarely, new evidence from the cardholder might reopen the case.
Second Chargeback (if applicable)
In exceptional cases, a resolved dispute may reopen, leading to a second chargeback.
This is the final stage of the process.
Key Tips for Success
Always respond promptly to RFIs to preserve your ability to contest disputes.
Keep clear records of transactions to provide strong defense documentation.
Monitor chargeback notifications to act within the required timeframes.
Understanding this process can help you handle disputes effectively and minimize potential financial losses.