C04 – Goods/Services Returned or Refused

By September 27, 2019American Express, Reason Code

Chargeback Reason Code


Why did I get a chargeback with American Express reason code C04?

The cardholder claims to have returned merchandise, but you didn’t provide a refund. Or, the cardholder refused to accept the services offered or the delivery of goods, but you didn’t provide a credit.

What do I need to fight a chargeback with American Express reason code C04?

Your chargeback response must include at least one of the following items:

  • If you haven’t received the returned merchandise, provide proof that refutes the cardholder’s claim.
  • If the merchandise was returned in a way that doesn’t comply with your policies, provide a copy of the return policy, outline how you made the cardholder aware of the policy before the purchase, and explain how the rules weren’t followed.
  • If the cardholder claims to have refused delivery, provide proof that the goods or services were accepted.
  • If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.

How can I avoid a chargeback with American Express reason code C04 in the future?

  • For card-present transactions, clearly disclose the return policy on the transaction receipt. If the policy is on the front of the receipt, it should be near the customer signature line. If it is printed on the back, the cardholder must sign the front and initial the back near the policy disclosure.
  • For card-present transactions, print the words “no refunds” or “in-store credit only” on all copies of the transaction receipt if you do not allow returns or have a limited return policy.
  • For online transactions, clearly disclose the return policy, either on the checkout page that contains the final purchase amount or on the checkout page near the submit button. Require customers to select a “click to accept” box or acknowledge the policy in some other way before completing the purchase.
  • Don’t accept delivery of returned merchandise if it doesn’t comply with your policy.
  • Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.
  • If you will be crediting the cardholder for a reduced amount, communicate the difference before processing the credit.

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