Reason code

American Express reason code C32 is used when a cardholder claims the goods they received were damaged or defective, or the services provided were not delivered in working or acceptable condition. This typically applies to physical products that arrive broken, malfunctioning, or incomplete, as well as services that fall short of promised standards.

These disputes are often preventable with quality control and clear return procedures. Merchants who can prove the item was shipped in good condition—or that the cardholder failed to return it or report damage properly—can often dispute the chargeback successfully.

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If the goods were not defective or the issue was resolved, submit documentation to support your case:

• Provide shipping records, inspection photos, or service logs showing the item or service met expectations

• Include return/refund policy terms and evidence that the customer failed to follow proper procedures

Prevent disputes by ensuring product quality and offering a clear, easy-to-follow return process:

• Inspect goods before shipping and document condition with photos or checklists
  
  
• Make your return and warranty policies visible and easy for customers to act on

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