Consumer Disputes
C18 No Show or Card Deposit Cancelled
Details
American Express (Amex) reason code C18 applies when a cardholder disputes a charge for a service (e.g., hotel booking, car rental) that was canceled, but the merchant claims the customer didn’t show up, or a deposit was forfeited. This code is used when a customer disputes a charge after failing to honor a reservation or cancel on time, or when they believe a deposit wasn’t refunded correctly.
Merchants can either provide evidence of the no-show or canceled reservation or demonstrate that the customer violated the terms regarding deposits and cancellations.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
To effectively respond to a C18 chargeback, merchants should:
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If the customer failed to show up or canceled outside the allowed window, provide the following evidence:
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A copy of the terms and conditions showing the cancellation policy.
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Proof that the customer was aware of the no-show policy (e.g., booking confirmation, emails, or messages).
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If the deposit was non-refundable or part of the terms, provide evidence of the customer’s acknowledgment of those terms.
How to prevent?
To prevent disputes under C18, merchants should:
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Clearly communicate no-show and cancellation policies during the booking process and on confirmation receipts.
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Ensure the customer acknowledges the cancellation and deposit terms at the time of booking or payment.
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Keep records of all communication, bookings, and cancellations to avoid potential misunderstandings.
By managing expectations around no-shows and cancellations upfront, you can reduce the risk of disputes.