disputes - american express
TRANSCRIPT
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