Reason code

American Express reason code P04 applies when a transaction intended to be a charge is mistakenly processed as a credit. This typically results in the cardholder’s account being refunded instead of debited, which can lead to financial loss for the merchant if not corrected quickly.

This issue often arises from human error—such as selecting the wrong transaction type at the point of sale—or from system configuration problems in the merchant’s processing software. While the cardholder may not dispute the charge, Amex flags the discrepancy and issues a chargeback.

‍

If the transaction was meant to be a charge, clarify the mistake and confirm that the correct charge was later processed:

• Provide transaction records showing the credit was unintentional and followed by a valid charge
  
  
• Include POS system logs or staff notes that explain the processing error

‍

Prevent these errors with staff training and system safeguards:

• Clearly label charge vs. credit options in your POS system and verify selections before submitting
  
  
• Regularly audit transactions to catch processing mistakes before they result in chargebacks

‍