Reason code

American Express (Amex) reason code C04 is applied when a cardholder disputes a charge after returning merchandise or refusing services but has not received a refund or credit. This situation occurs when a customer returns goods or declines services, expects a refund, but the merchant has not processed the credit.

To effectively respond to a dispute filed under reason code C04:

• If the customer returned merchandise:
  
  • Provide evidence that the returned goods were not received, such as return shipping tracking information. It’s a good idea to provide a shipping label for your customers, so you have this proof.
    
    
  • If the return did not comply with your return policy, present a copy of the policy, proof that the customer was informed of it, and an explanation of how the policy was not followed.
    
• If the customer refused services or delivery:
  
  • Submit proof that the goods or services were accepted by the customer, such as a signed delivery slip for delivered goods or evidence of service usage.
    

Timely submission of clear and comprehensive evidence is crucial to resolving the dispute favorably.

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To minimize the occurrence of disputes under reason code C04:

• Clarify Return and Refund Policies:
  
  • Ensure that your return and refund policies are transparent, easily accessible, and communicated to customers at the time of purchase.
    
• Maintain Accurate Records:
  
  • Keep detailed records of all transactions, communications, and returned merchandise to provide evidence if disputes arise.
    
• Enhance Customer Service:
  
  • Offer responsive and helpful customer support to address issues before they escalate to chargebacks.
    

Implementing these measures can significantly reduce the likelihood of disputes related to returned or refused goods and services.

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