Reason code

American Express reason code FR2 is part of the Fraud Full Recourse Program, which allows the issuer to hold the merchant financially responsible for certain fraud-related transactions—especially when risk controls or best practices were not followed. This applies to merchants identified by Amex as high-risk or operating under specific program terms.

Unlike traditional fraud disputes, FR2 chargebacks do not require the cardholder to file a claim. Instead, Amex can initiate the dispute directly based on internal fraud monitoring and policy triggers. The burden then falls on the merchant to prove the transaction was legitimate and authorized.

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If the transaction was valid and not fraudulent, submit strong evidence of cardholder authorization:

• Include AVS/CVV match results, IP addresses, or signed receipts

• Provide any fraud screening results and confirmation of delivery to the cardholder

If you’re under the Full Recourse Program, take extra precautions with every transaction:

• Use robust fraud detection tools and follow all Amex security guidelines

• Maintain detailed records of customer interactions, authorizations, and deliveries