Disputes

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What we’ll cover today

The American Express Disputes Process

Dispute policy updates

What to do when you're presented with Inquiries & Chargebacks

How you can prevent disputes

How to manage disputes online

How to manage fraud

Process

What is a Dispute?

When a Card Member questions some aspect of an item on their billing statement, he or she can dispute the charge for a variety of reasons:

The Dispute Process: Inquiry

What is an Inquiry?

An Inquiry is a notification you receive asking for more information on a Transaction. We ask for your help, if we cannot resolve the Card Member’s disputes using the information we have on file.

The Dispute Process: Chargeback

Upfront Chargeback

*

Chargeback StatusThe Chargeback stands if

your reply is insufficient, you do not reply on time or you

accept the chargeback

What is a Chargeback?

A Chargeback is the debit of funds from your Merchant Account for the disputed amount. We will send you a Chargeback notification for your review.

The Dispute Process: Outcomes

Upfront Chargeback

Chargeback StatusThe Chargeback stands if

your reply is insufficient, you do not reply on time or you

accept the chargeback

Chargebacks & Inquiries

How to Respond to a Dispute

Timing is key. You have 20 days to respond to an Inquiry and must respond with all the appropriate documents to avoid a Chargeback.

• Address the specific dispute reason• Clearly explain all of the submitted

documents and address updates made to the original purchase or agreement

• Include a copy of the charge record/credit record and other supporting documentation

• Address the specific Card Member dispute claim in your response

• Clearly explain all of the submitted documents and add any changes/edits made to the original purchase /agreement

• Update American Express with steps that have been taken to resolve the dispute

How to Avoid Chargebacks After an Inquiry

You can avoid some of the common Chargebacks by responding to all inquiries and ensuring all requested documentation is included.

Types of Disputes

WHAT DOES IT MEAN?

Card Member claims to not recognise or remember the charge.

WHAT DOES IT MEAN?

Card Member claims that the goods or services ordered were cancelled.

WHAT DOES IT MEAN?

The Card Member denies participating in a mail order, telephone order, or internet charge, and claims it is fraud.

WHAT SHOULD YOU DO TO APPEAL THE CHARGEBACK?

Respond to the Inquiry, or request for information, with as much context about the charge as possible.

WHAT SHOULD YOU DO TO APPEAL THE CHARGEBACK?

To appeal this Chargeback respond with as much detail as possible. First, make sure to address the status of the cancellation. If you have no record of the Card Member cancelling the charge, please advise us.

WHAT SHOULD YOU DO TO APPEAL THE CHARGEBACK?

To appeal this Chargeback respond with as much detail as possible.

For more information about what you will need to provide for each type of dispute – please see the appendix of this doc.

Disputes

Clear Billing Statement Details

Use your customer facing Business Name on the card member billing statement.

Merchant Business Name appears as ABC Hospitality on Card Member Statement for charge taken at Sea view restaurant

APRIL 24 ABC HOSPITALITY 211.27

APRIL 24 SEA VIEW RESTAURANT 211.27

At the Time of Purchase

Your Practices & Policies

Online

Manage Disputes Online for a Quick Resolution

Start Managing your Disputes Online

Log in or register for an Online Merchant Account at:Australia – americanexpress.com.au/Merchant Singapore – americanexpress.com.sg/Merchant

Fraud

Fraud Tools

As an American Express Merchant, you have access to our fraud mitigation tools free of charge

CHIPIN/CHIPSIGNtransactions must be encouraged

DAMAGED/EXPIRED CARD Closely look out for Exp Date of Card and any damage to plastic

CIDThe 4 Digit Batch Code printed on front of card is the CID for American Express issued Cards

SAFEKEYThis fraud tool authenticates the Card Member during an online purchase

ENHANCED AUTHORISATION Additional data elements enhance the fraud risk assessment

VERIFY - IT Verifies Name and Address of American Express proprietary Card Member

American Express SafeKey is a Critical Tool

American Express SafeKey is a 3D Secure authentication tool that helps reduce online fraud through two-factor authentication. You can sign up at: Australia - americanexpress.com.au/merchantsafekeySingapore - americanexpress.com.sg/safekey

Optimise operational efficiency by reducing

the costs of fraud

Drive incremental revenue by giving

customers and prospects the confidence

to spend

Implement with ease within your existing

infrastructure

Policy Updates

New/Revised Policies, Fewer Chargebacks

In the past three years, we’ve made changes to enhance the disputes experience. We’ve heard your feedback and enhanced dispute policies and processes as we are committed in helping to reduce disputes and Chargebacks.

▪ Revised SafeKey Fraud Liability Policy

▪ Estimated Authorisation for Taxi and Limousines

▪ Estimated Authorisation for Online Retail and Grocery

▪ Second Presentment rights for Cancelled Recur Billing Chargebacks

▪ Raised contactless thresholds

▪ Recurring Billing – Introductory Offer/Free Trial*

*Effective April 2021

Expanding Estimated Authorisation to other Industries

In response to Merchant request, we have expanded industries permitted to obtain an estimated Authorisation to Merchants in Taxi and Limousine and Online Retail and Grocery.

Card Not Present Retail and Grocery:

• Merchant can include variations in weight and shipping charges under the original authorisation approval amount

• The amount you submit on the final Card Not Present retail or grocery order will be valid for up to 15% above the authorisation amount

• The Card Member must provide consent to bill the full total amount

• Authorisations and charges must be submitted under the Card Not Present point of service codes

• Customers can add driver tips into a single charge for the ride

• Faster, simpler checkouts for your customers

• Taxis and Limousine services may validate Card approval upfront when the ride is requested

• If the final charges, including tips and tolls, are not more than 20% above the initial authorisation amount, no re-authorisation is needed

Taxi and Limousine

Recurring Billing – Introductory Offer/Free Trial

We are making updates to the Recurring Billing policy to help you manage your disputes better.

What do Merchants need to do:

• Simple and Easy Cancelation process : Disclose all terms of the Introductory Offer/Free Trial to the Card Member, including a simple and easy cancelation process that allows Card Members to cancel before submitting the first Recurring Billing Charge.

• Obtain Consent: Obtain the Card Member’s consent to accept the terms and conditions

• Enrollment confirmation :Send Card Member a confirmation notification in writing (email, text or letter) upon enrollment

• Reminder notification : Send a reminder notification in writing (email, text or letter) before submitting the first Recurring Billing Charge, that gives the Card Member a good amount of time to cancel their subscription if needed

Beginning on April 16th, 2021, we have updated our Recurring Billing policy to include requirements around Introductory Offers and Free Trials.

This means, the new requirements will provide guidance to Merchants who do recur billing around Introductory Offers and Free Trials.

Incorporating best practices and fraud tools can help prevent disputes

Australia Singapore

View more resources at americanexpress.com.au/disputes americanexpress.com.sg/disputes

Log in or register for an Online Merchant Account at

americanexpress.com.au/Merchant americanexpress.com.sg/Merchant

For more information, contact your client manager/American Express

representative, or call:

1300 363 614 (Mon - Fri, 8am-6pm AEST/AEDT)

1800 235 6755(Mon - Fri, 9am-6pm SG Time)

View International Merchant Regulations at: americanexpress.com/InternationalRegs

Appendix – Types of Disputes

PROVIDE:

A charge record that includes:• Card number• Card Member name• Merchant location• Transaction date or the date goods or

services were shipped or provided• Transaction amount• Authorisation approval• Description of goods or services

Proof of delivery with the full delivery address (if the charge relates to items that were shipped)

PROVIDE:

• A copy of your cancellation policy,• An explanation of your procedures for

disclosing it to the Card Member, and• Details explaining how the Card Member did

not follow the cancellation policy or• A copy of the charge record indicating the

terms and conditions of• the purchase, and• Details explaining how the Card Member did

not follow the policy or• Proof that a credit which directly offsets the

disputed charge has already been processed

Additionally, if you have a recurring billing agreement with a Card Member that cancelled, you must cancel all future billings

PROVIDE:

• Proof that the Card Member participated in the charge (e.g. billing authorisation, usage details, contract) or

• Provide all Card Member details and receipts: - e.g. for airlines provide boarding pass - e.g. for retailers provide order delivery details or

• Proof that you validated the address via authoriation and shipped goods to the address we have on file or

• Proof that a credit which directly offsets the disputed charge has already been processed