Consumer Disputes
24 Goods Damaged/Defective
Details
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.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
If the product was shipped in working condition or the customer failed to report the issue properly, provide proof:
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Include packing photos, pre-shipment inspection records, or quality control checklists
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Submit your return policy and evidence showing the customer did not return the item or request support
How to prevent?
Minimize these disputes with strong packaging, inspection practices, and a simple return process:
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Photograph products before shipping and use protective packaging materials
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Make your return process easy to understand and include clear contact instructions