American Express Credit Card Frauds: Next Steps
A strange charge on an Amex card has a set path. Here is what the cardholder does first, how Amex works the case, and what a merchant receives.
A charge shows up on an American Express card. The cardholder never made it. That is the start of an American Express credit card fraud case. This page walks through what Amex's own guides say happens next, on both sides of the sale. The cardholder has a short list of steps. The merchant has a longer one, with codes attached. Both paths are covered here, in Amex's own words.
What counts as credit card fraud on an Amex card
A fraud case starts with a charge the Card Member did not make and did not allow. That is different from a bad order, where the buyer did make the purchase but something went wrong with it. A cracked lamp that arrived is a dispute about quality. American Express's guide says Card Members can dispute a charge for lots of reasons, and fraud is one of them. The steps below apply when the reason is fraud.
What a Card Member should do first when a charge looks fraudulent
Amex puts one step before the dispute itself. American Express asks you to contact the merchant before you open a dispute.
That may feel backwards when the charge looks like fraud. But contacting the shop can settle some cases. A charge with an odd shop name on the statement may turn out to be a real purchase under a parent company's name. A duplicate charge may be a billing error the shop can fix on the spot. Contacting the shop can end the case before it starts.
If the merchant cannot or will not help, the dispute is next. Amex's help center says you can dispute a charge by selecting the transaction and clicking "Dispute this Charge". American Express lets you dispute a charge online by picking it from your list of transactions. No phone call is required to get the case moving.
How American Express works a fraud dispute, step by step
Once the case is open, Amex runs it in a fixed order. American Express's guide says it works directly with the Card Member and tries to resolve the case before reaching out to the merchant.
So the merchant hears nothing at first. Amex talks to the Card Member, checks what it already has, and only brings the shop in if that is not enough. A disputed charge is first worked on with the Card Member before the merchant is contacted.
If that first pass does not settle it, the case moves. If more information is needed, the merchant receives either an Inquiry or a Chargeback. Which one arrives depends on what the Card Member has given Amex so far.
What merchants receive: the Inquiry vs. the Chargeback
These two are not the same thing, and the difference matters to a shop owner.
A merchant gets an Inquiry when a Card Member disputes a charge that cannot be resolved with the documents on file. An Inquiry is a request for more information. The money has not moved yet. It is Amex asking the shop to show its side of the sale.
A Chargeback is the stronger step. If the Card Member gives enough information, the merchant's account may be debited upfront. The money comes out of the shop's account while the case runs.
The two paths share one rule. American Express's guide says the merchant's account will be debited if the merchant does not reply in time or with the requested documentation. Silence costs the shop either way.
For a fuller walk through the merchant side of this process, see the page on the amex chargeback.
Fraud-related codes: Inquiry Code 193 and F31 EMV lost, stolen or non-received
Amex labels each case with a code.
Inquiry Code 193 is for Fraud disputes. When a shop sees that number on an Inquiry, it knows the Card Member is claiming the charge was fraudulent.
On the Chargeback side, the American Express guide says chargeback code F31 is named EMV lost, stolen or non-received. The name points to a card that was lost, stolen or never received.
A code tells the shop what the Card Member is claiming. It does not settle the case. That is what the reply is for.
How merchants can respond to a fraud dispute
The best way for a merchant to respond to a dispute is online through its Merchant Account. That is where the shop sends its documents and tracks the case.
What goes in the reply matters as much as getting it in on time. A merchant's supporting documents should include a copy of the charge record or credit record. A good reply explains the documents, addresses the specific dispute reason and describes the steps taken to resolve it.
The outcome follows from the reply. If a merchant's reply settles the dispute on time, there is no Chargeback. After a Chargeback, the merchant can send supporting documents that might reverse it. A Chargeback is undone if the merchant's reply addresses the dispute successfully and on time. If the merchant does not reply in time or with the requested documents, the Chargeback stands.
For a cardholder reading along, the same ground is covered from the buyer's seat on the page about the amex charge dispute.
Fraud prevention steps American Express recommends
Amex does not leave shops to guess at prevention. Its guide names a few habits that cut down fraud disputes before they start.
American Express's guide says to check for ID during all face-to-face transactions to help prevent fraud. A fake card held by the wrong person has a harder time when the shop looks at who is holding it.
American Express's guide says to keep a record of consent and proof of delivery for orders that have shipped. Those records are the shop's proof if a fraud claim lands later. Consent shows the Card Member agreed to the charge. Delivery proof shows the goods went where they were supposed to go.
American Express's guide says merchants can help prevent disputes by making sure Card Members can recognize their charges. A statement line the buyer cannot place turns into a dispute fast. A clear shop name on the bill stops that before it starts.
Where to find more help
American Express's guide says more dispute resources can be found on its Disputes Education Center webpage. That is Amex's own hub for this material.
For more, see the pages on the american express chargeback and american express how long to dispute a charge.
A fraud charge on an Amex card sets off a fixed path. The Card Member contacts the shop, then disputes the charge online. Amex works the case with the Card Member first. The merchant gets an Inquiry or a Chargeback, with a code that says what is being claimed. A good reply, in on time, can end the case. The habits Amex recommends can help prevent these cases.