Reason code

American Express reason code 147 is used when a cardholder disputes a charge because they believe it should have been paid by their insurance company instead of being billed to their Amex card. These situations often involve medical or service-related transactions where the customer expected third-party coverage.

In many cases, the cardholder may not have realized their card was charged or believed the provider would bill insurance directly. If the charge was authorized and the service rendered, the merchant can typically challenge the dispute by showing that billing was handled according to agreement.

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If the cardholder knowingly authorized the charge, submit documentation to support that the billing was correct:

• Provide a signed agreement or acknowledgment confirming the customer agreed to pay out-of-pocket

• Include invoices or receipts showing the charge was processed in accordance with the billing terms

Be clear about payment responsibilities when insurance is involved:

• Communicate to customers in writing when charges will be billed to their card instead of insurance
  
  
• Obtain signed authorization forms confirming they agree to be charged directly if necessary

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