Understanding American Express Chargebacks with PbN Payments

If you're accepting payments through PbN Payments, it's important to know how the American Express chargeback process works. Here’s a simplified guide to help you navigate this process.

The American Express Chargeback Process

The chargeback process with American Express typically follows these steps:

1. Request for Information (RFI)
2. Information Supplied
3. Notification of Chargeback
4. 1st Chargeback
5. Information Supplied
6. Chargeback Reversed
7. 2nd Chargeback

Step 1: Request for Information (RFI)

The process usually starts with an American Express Request for Information (RFI). This is when they ask you for more details about a transaction because the cardholder has disputed it. You have 14 days to provide the necessary documents that explain or justify the transaction.

At this stage, no funds are deducted from your account. However, it’s crucial to respond promptly. Failing to respond can lead to a chargeback that you won't be able to contest later.

Sometimes, American Express might skip this step if there are significant concerns, like a high number of fraud cases, and move directly to the chargeback stage.

Step 2: Information Supplied

Once you provide your defense documents, they are reviewed. After you submit this information, it cannot be changed. This stage involves forwarding your documents to American Express for evaluation.

Step 3: Notification of Chargeback

If American Express decides to proceed, they will send you a Notification of Chargeback (NoC). This indicates that a chargeback has been initiated. Although your account hasn’t been debited yet, this notification signals that funds will soon be withdrawn unless you successfully defend the chargeback.

At this point, you can either accept the chargeback, which means the dispute is lost, or you can defend it by submitting the necessary documents within 14 days.

Step 4: 1st Chargeback

If the chargeback goes through, your account will be debited for the disputed amount. If the defense timeframe has not yet expired, you still have a chance to defend the chargeback during this stage.

Step 5: Information Supplied

Your defense documents are reviewed again. The funds will be returned to your account if American Express accepts your defense. However, if your defense is rejected, the dispute ends, and the chargeback stands.

Step 6: Chargeback Reversed

If your defense is successful, American Express will reverse the chargeback and credit the disputed amount back to your account. This is usually the final step, but in some cases, the cardholder might present new evidence that could reopen the dispute.

Step 7: 2nd Chargeback

In rare instances, American Express may reopen a dispute that was previously settled in your favor. If this happens, a second chargeback occurs, and your account is debited again. This is the final stage of the chargeback process.