Reason code

American Express (Amex) reason code 170 is used when a cardholder cancels a hotel or car rental reservation in accordance with the cancellation policy, but the deposit or prepayment is not refunded. This can happen if the merchant fails to process the cancellation or apply the refund in time.

Merchants should clearly communicate cancellation deadlines and refund terms. Promptly process refunds for eligible cancellations, and maintain records of the cancellation request and policy shown to the cardholder at the time of booking.

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If you believe you are in the right: 

• Provide proof that the reservation was non-refundable or not canceled within the allowed window
• Include the cancellation policy agreed to by the cardholder and any communication logs

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The best way to prevent this is through staff training and creating accessible communication channels with your customers by: 

• Display cancellation policies clearly at booking, especially if you are an online booking site
• Processing eligible cancellations and refunds promptly