Consumer Disputes
C05 Goods/Services Cancelled
Details
American Express (Amex) reason code C05 applies when a cardholder disputes a charge because they canceled an order for goods or services, but the merchant did not process a refund. This reason code indicates that the customer expects a refund but claims it was not received after canceling their purchase.
Merchants can either issue a refund or credit, or respond to the dispute by providing proof that the cancellation request was not processed or that no refund was owed under the agreed terms.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
There are several ways to respond if a dispute is filed under this reason code:
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If the customer’s cancellation request was valid, and the refund was not processed, issue the refund promptly to avoid further complications.
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If the customer is in violation of your cancellation policy, provide the following evidence.
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A copy of the cancellation policy to which the customer agreed.
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Documentation of the customer’s cancellation request and any communication around the issue.
How to prevent?
To prevent disputes under C05, merchants should:
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Ensure all cancellation requests are processed in a timely manner, and refunds are issued accordingly.
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Maintain clear, visible cancellation and refund policies that are communicated to customers prior to purchase.
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Ensure you have detailed records of cancellation requests and customer communications to avoid confusion.
By addressing cancellations promptly and ensuring transparency, you can minimize the risk of disputes.