American Express reason code 24 is used when a cardholder claims that the goods they received were damaged upon arrival or were defective in some way. This may include issues such as broken parts, items that don’t function as intended, or products not meeting quality expectations.
These disputes are common in eCommerce and retail scenarios where the product condition can be affected during shipping or due to a manufacturing flaw. If the merchant can show the item was in good condition when shipped—or that the customer did not follow return procedures—they may be able to reverse the chargeback.
If the product was shipped in working condition or the customer failed to report the issue properly, provide proof:
Minimize these disputes with strong packaging, inspection practices, and a simple return process: