Chargeback Reason Code
Why did I get a chargeback with American Express reason code F31?
You processed a transaction but the cardholder denies participating in it because the card was lost, stolen, or never received. The fraud wasn’t detected because either the POS was not chip-and-PIN enabled or the transaction was manually keyed.
Note: This reason code should not be used for contactless transactions, digital wallet payments, or charges that qualify for the “No PIN” program.
What do I need to fight a chargeback with American Express reason code F31?
Your chargeback response must include at least one of the following items:
- If the purchase was a card-not-present transaction, provide proof the dispute is invalid.
- If your POS processed the chip card correctly, provide proof that the transaction was validated with a PIN.
- 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 F31 in the future?
- Only use EMV-compliant terminals.
- Always use the correct cardholder verification method—signature, PIN, etc.
- Make sure you differentiate between card-not-present and card-present transactions during clearing by noting, internet, phone, or mail orders.