Reason code

American Express reason code 127 is issued when a cardholder doesn’t recognize a charge on their statement and believes it may be fraudulent or unauthorized. This doesn’t necessarily mean the transaction was invalid—it could simply be that the merchant name was unclear or the cardholder forgot about the purchase.

These disputes are often the result of confusing billing descriptors, shared accounts, or recurring charges the cardholder didn’t recall. If the merchant can provide documentation linking the customer to the transaction, the chargeback may be reversed.

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If the charge was valid, provide evidence that clearly connects the cardholder to the transaction:

• Submit receipts, IP logs, or account login activity confirming the purchase
  
  
• Include customer communication or transaction history showing familiarity with the merchant

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Help customers recognize your charges and reduce confusion:

• Use a clear, recognizable billing descriptor that matches your business name
  
  
• Send confirmation emails and receipts immediately after purchase

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