American Express Chargeback Time Limits and Guidelines in 2025

American Express chargebacks have time limits, as do other financial service providers. Whether you are a merchant facing potential chargebacks or a cardholder who has been the victim of criminal fraud, you must be aware of these American Express chargeback time limits and how the process works.

American Express did not set a time restriction on how long cardholders could contest a transaction. Nonetheless, the business has imposed a 120-day window on chargeback submissions in recent years. Merchants must reply within 20 days for the majority of stages. But the narrative is not over yet.

This article will cover American Express’s chargeback policy, as well as preventative methods, and how their chargeback time constraints affect cardholders and merchants.

What Makes American Express Chargebacks Unique?

In terms of transaction volume and total card numbers in use, American Express is now ranked fourth in the world’s general-purpose card network. However, in contrast to Mastercard and Visa, Amex has never been reliant on traditional banking.

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One significant difference between American Express chargebacks and other networks is that American Express is both the card network and the issuing bank. In other words, cardholders who file an American Express chargeback are also customers of the issuing bank. This can simplify and speed up the whole process for cardholders but may limit a merchant’s ability to contest erroneous chargebacks.

American Express gives cardholders 120 days from the transaction date to dispute a charge. This time range may be extended in specific circumstances, such as when the products have not arrived.

Second-chance disputes are intended for users who file good-faith disputes without fully understanding what proof is required to win. However, since American Express chargebacks only enable each side to provide evidence once, a cardholder who wishes to submit more proof must file a new dispute. This process occasionally creates unnecessary work for merchants who must address the same disagreement again.

Furthermore, when a cardholder calls Amex to dispute a transaction on their account, one of two things happens. Either Amex will issue an immediate, upfront chargeback once the cardholder provides sufficient evidence that the charge was unauthorized, or if it is unclear whether or not the cardholder has a valid claim, Amex will contact the merchant.

What are the Different Parts of Chargebacks?

The American Express chargeback process is structured into three primary phases:

• Part One: Initiation and Notification

When an Amex cardholder raises a dispute about a transaction, American Express initiates an investigation and notifies the merchant by sending a chargeback notification. This notification provides the details of the disputed transaction and the reason for the chargeback. Merchants are given a specific timeframe, usually of 20 days, to respond to the chargeback notification.

During this phase, merchants must gather and present evidence to effectively contest the chargeback. This initial step is crucial for merchants to protect their interests. Cardholders may cite reasons for disputing a transaction, such as unauthorized charges, non-receipt of goods or services, or billing errors.

• Part Two: Resolution

When a cardholder files a chargeback claim with American Express, the company thoroughly reviews all of the evidence and documentation submitted by both the cardholder and the merchant. The main objective of this review is to determine whether the disputed transaction should be reversed or maintained.

During this process, American Express may need to request additional information or clarifications from either party to make a well-informed decision. If the chargeback is resolved in the merchant’s favor, the amount previously refunded to the cardholder will be debited from their account. On the other hand, if the chargeback is upheld, the cardholder will retain the refund.

• Part Three: Appeal Phase (Limited Availability)

It’s worth noting that American Express takes a unique approach to chargeback disputes. Unlike other card networks, it doesn’t have a formal arbitration process in place, which means its rulings are generally considered final.

Although merchants can provide additional information or documents during the representation process, their chances for further appeals are limited. Therefore, merchants need to present a strong case with all the necessary evidence during their initial response, as additional opportunities for appeals or arbitration might be restricted.

American Express Time Limits for Merchant Chargeback Disputes

American Express investigates charges that a cardholder disputes and renders a preliminary determination. The transaction value is immediately removed from the merchant’s account, and if sufficient evidence exists to support the claim, a chargeback is submitted.

When the merchant has doubts regarding the assertion, things alter. If they need more information, they can ask questions or make requests for it. Within twenty days of receiving the inquiry, the merchant must either accept the disagreement or provide evidence that the claim is false. The dispute turns into a chargeback if the merchant does not reply within the allotted period or if American Express finds the proof to be insufficient.

A company may contest a customer’s claim if they believe it was granted improperly or is illegitimate. But there are stringent deadlines for the process:

• After the inquiry is sent, you have 20 days from the date of issue to respond.
• You have 20 days from the date of the chargeback to contest it if the inquiry response leads to one being issued.
• You have 20 days to contest the chargeback if it resulted directly from a consumer disagreement.

How to Respond to American Express Chargebacks as a Merchant?

Merchants may prevent American Express chargebacks in much the same way they can prevent other charges. Some key ways to accomplish this are excellent customer service, suitable fraud prevention technologies, and a comprehensive study of chargeback data to uncover unforeseen concerns.

American Express offers some general recommendations for merchants on how to avoid chargebacks, which most merchants who have dealt with chargebacks in the past should already be aware of:

• Customers should be made aware of your return and refund policy.
• Check that the company name that appears on credit card statements is identifiable.
• Follow all recommended security and authorization processes.
• Keep detailed transaction data for at least a year.

When preparing to respond to a chargeback, merchants must be proactive and organized to contest the chargeback before the response deadline approaches effectively. Here’s what they need to do:

• Understand Time Limits: Merchants must be aware of the specific time limits set for responding to a chargeback. Generally, merchants have about 20 to 30 days from the time a chargeback is filed, although this can vary depending on the card network and factors like the transaction type or the specific conditions of the dispute.
• Prepare Documentation Promptly: Merchants must promptly obtain all pertinent paperwork, such as receipts, delivery confirmations, correspondence with the client, and any further information that validates the transaction’s validity. Merchants will be better equipped to reply efficiently if these materials are organized in advance.
• Draft a Response: Make sure your planned response to a chargeback has comprehensive information as well as a synopsis of the transaction. You should provide evidence in your response to support your position that the chargeback should be denied. It is also essential to reference any relevant policies, terms, conditions, or agreements that apply, as well as any relevant correspondence you may have had with the cardholder. Finally, clearly request that the chargeback be reversed and carefully explain the result you want.
• Monitor Notifications: Implementing systems to immediately receive and process chargeback notifications is essential. Any delay in recognizing a chargeback can significantly reduce the time available to collect evidence and respond.
• Utilize Acquirer Resources: Working closely with your acquiring bank is important to understand any additional requirements they might have. Acquirers often have shorter internal deadlines for their processes before the dispute officially reaches networks like Visa or MasterCard, which impacts the actual time available to respond.
• Act Quickly: Ideally, respond within the first week of receiving the chargeback notice. This approach not only maximizes the time for potential back-and-forth communication but also demonstrates your proactive engagement in the dispute process to the card networks and issuers.
• Seek Professional Help if Needed: Given the complexity and stakes involved, consider enlisting chargeback management services or legal counsel. These professionals can offer expertise in navigating the dispute process, adhering to protocols, and improving your chances of a favorable resolution.

Strategies to Prevent American Express Chargebacks as a Merchant

To minimize American Express chargebacks, merchants can adopt strategies emphasizing transaction verification, customer communication, and effective dispute management. Here are essential actions to implement:

• Transaction Verification: Implement security measures such as the Address Verification System (AVS) and Card Security Code (CSC, also known as CVV or CID). AVS helps by comparing the billing address provided by the cardholder with the one registered at the bank, identifying discrepancies and reducing fraud. Using the CSC confirms the customer physically possesses the card, which is crucial for online sales.
• Clear Communication: Clearly communicate all transaction terms to your customers. Include detailed descriptions of products, return policies, and charges at the point of sale. For services, clarify what is included in any additional fees and outline the cancellation policy. Transparent communication can avert misunderstandings that might lead to disputes.
• Proactive Customer Service: Actively manage customer inquiries and complaints to prevent disputes from escalating to chargebacks. Prompt and effective customer service not only aids in dispute resolution but also fosters trust and loyalty.
• Documentation and Record-Keeping: Keep detailed records of transactions, such as receipts, invoices, and customer communications. For transactions not conducted in person, maintain evidence like delivery confirmation and contract agreements. These documents are vital for supporting your case in a dispute.
• Understand American Express Protocols: Since American Express functions both as a card network and a bank, learn about its unique dispute resolution procedures. Familiarizing yourself with their specific processes, including time frames and conditions for responding to disputes, can significantly enhance your management of these situations. Typically, you have 20 days to respond to an inquiry from American Express with adequate proof of transaction legitimacy.
• Active Chargeback Management: Monitor your chargebacks closely and respond swiftly when they occur. If a chargeback is filed, compile all pertinent documentation and submit it within the designated time frame to challenge the chargeback. Understanding American Express’s specific chargeback reason codes and preparing targeted evidence can improve your likelihood of reversing a chargeback.

American Express Time Limits for Cardholder Chargebacks

As previously mentioned, the American Express dispute period for cardholders is now 120 days after the initial transaction date. This rule went into force a few years ago. Prior to that, cardholders had the option to file a chargeback regardless of the day of the transaction.

The general 120-day window for submitting a dispute does not apply to some specific cause codes. These reason codes are CO8 (goods or services Not Received or Only Partly Received), C05 (goods or services abandoned), and C04 (goods or services Returned or declined). Under certain circumstances, the deadline for submitting a dispute may be extended; this is covered in more detail below.

Redisputes, or a second dispute filed in reaction to a chargeback reversal, are notable for being excluded from the 120-day window. This 120-day limit was very recently implemented. Prior to this, Amex determined the deadline for cardholders to initiate a chargeback, regardless of when the transaction actually happened.

This still gives customers a substantial window of time to file a complaint. To maintain equilibrium, cardholders are generally restricted to raising two disputes for each transaction. This restriction ensures that retailers do not have to answer the same argument more than once.

American Express Dispute Procedure as a Cardholder

The dispute procedure for American Express is crafted to protect the interests of both cardholders and merchants. Under the regulations of the Fair Credit Billing Act (FCBA), cardholders are entitled to contest charges they deem inaccurate or fraudulent. When a dispute is raised, American Express usually supports the cardholder unless the merchant presents substantial proof otherwise.

• Identify the Issue:

If you’re an Amex cardholder and you spot a transaction that appears incorrect or unauthorized, the initial step is to contact the merchant directly to attempt to resolve the issue.

• Contact American Express

If you cannot resolve the matter with the merchant, proceed to initiate a chargeback by contacting American Express. This can be done via the Amex website or by an app on your phone, where you will report the disputed transaction.

• Starting a Dispute

Cardholders need to log into their American Express account to begin a dispute and select the charge they wish to contest. This process does not typically require direct communication with the merchant. Cardholders must report any disputes within 120 days of the transaction to qualify for consideration.

• Investigation by Amex

After submitting your dispute, American Express will investigate your claim. This may involve contacting the merchant to hear their perspective and possibly requesting additional information.

• Merchant’s Response

Once a dispute is filed, American Express alerts the merchant, who has 20 days to respond. This response should include evidence or documentation to challenge the dispute. If the merchant does not reply within this period, or if the provided evidence is inadequate, the chargeback is executed in favor of the cardholder, leading to the removal of the disputed funds from the merchant’s account.

• Documentation and Record Maintenance

Customers need to keep precise and comprehensive records of transactions, as these documents are critical in dispute resolutions. Effective record-keeping includes retaining receipts, noting transaction dates, amounts, and detailed descriptions of goods or services.

• Resolution and Insights

Whether a dispute is resolved in favor of the cardholder or the merchant, it serves as a valuable learning experience for businesses. By understanding the causes of disputes, merchants can adopt improved practices to avert similar issues in the future, such as enhancing customer service or modifying payment procedures.

Additionally, there are special considerations in the Amex chargeback process. Amex restricts cardholders to no more than two dispute filings per charge to prevent system abuse. Also, each party involved in the chargeback can only submit evidence once, making it crucial to gather and present all pertinent information from the start.

These procedures and regulations protect both the cardholder and the merchant, ensuring that disputes are resolved fairly and efficiently. All parties need to understand and adhere to the specific conditions and rules applicable to each case, including adherence to deadlines and proper documentation submission.

Conclusion

American Express chargeback time limits and procedures are crucial for merchants and cardholders alike. Adherence to these guidelines is essential, as well as a 120-day window for cardholders to dispute transactions and a 20-day response period for merchants. American Express’s dual role as a card network and issuing bank adds complexity to the process, emphasizing the importance of timely and thorough documentation.

Both parties must engage proactively to ensure a fair and efficient resolution of disputes, maintaining transparency and integrity in financial transactions. By understanding and adhering to these regulations, merchants and cardholders can navigate chargebacks confidently, mitigating risks and fostering trust in the payment ecosystem.

Frequently Asked Questions