Reason code

The A01 Reason Code is typically used when the amount being charged on an American Express card exceeds the approved authorization amount. 

This could happen for several reasons. 

There could be a clerical error in which the merchant accidentally entered a charge amount that was higher than what was authorized. Another common scenario is that there was a pre-authorization (for a hotel room or a rental car) where the final transaction amount wound up being higher than the pre-approved amount due to additional charges or fees.

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If you get a dispute under this reason code, gather the following evidence: 

• Proof of Authorization: Provide the original authorization request and approval. An example of this is the Merchant Copy of a credit card receipt. If the dispute is due to a pre-authorized amount, provide the proof of pre-authorization as well as proof that the customer agreed to the final amount. This is usually the signed invoice at check-out that shows the additional charges.

• Explanation of additional charges: You can also provide proof that the cardholder agreed to the potential additional charges at the time they pre-authorized a transaction. 

• Communication Logs: If the customer agreed to additional charges through a phone conversation or an online chat with a customer service agent, transcripts of those conversations should be included as proof. 

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There are a few ways that you can prevent an A01 dispute.

The first is by ensuring you have proper proof of authorization for all charges. This includes charges such as tips or taxes. It’s also helpful to provide pre-authorization for amounts that exceed the estimated final charge. This is an especially helpful practice for businesses in the hospitality industry. 

Proactive measures that protect your customer relationships are also important. These measures include clearly communicating additional charges to your customers and obtaining explicit consent in the form of email confirmation or signatures.

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