Merchant Operating
Guide
United States Region
April 2024
For changes in this edition please see the Summary of Changes Table
This guide is intended for use by Merchants that have entered into
a legally binding Agreement with a Merchant Services Provider
based in the United States Region to accept the American
Express® Card.
This document was published electronically on April 12, 2024 and will become effective immediately upon
publication unless otherwise specified herein.
Copyright © 2013-2024 American Express. All rights reserved. This document contains published
confidential and proprietary information of American Express. No disclosure or use of any portion may be
made or reproduced in any form or by any electronic or mechanical means, including without limitation
information storage and retrieval systems, without the express prior written consent of American Express.
The provisions of this document are subject to change from time to time by American Express.
Summary of Changes
Change Bars
Important updates are listed in the Summary of Changes Table and also indicated in the Merchant Operating Guide with
a change bar. Change bars are vertical lines in the left margin that identify revised, added, or removed text. All changes
in the Merchant Operating Guide are indicated with a change bar as shown here:
Summary of Changes Table
Important updates are listed in the following table and are also indicated in the Merchant Operating Guide with a
change bar.
Chapter Section/Subsection Description of Change
Chapter 1, "Introduction" Subsection 1.4.2, "Unscheduled
Changes"
Updated release information and website.
Chapter 4, "Transaction
Processing"
Subsection 4.2.2, "Unattended
Terminals"
Modified references from Customer Activated Terminals
to Unattended Terminals and added requirements.
Subsection 4.2.3.2, "Contact Chip Card
Charges"
Removed requirement for Chip Card fraud liability and
CATs.
Subsection 4.2.3.4, "Merchant-
Presented Quick Response (MPQR)"
Added Merchant-Presented Quick Response procedures.
Subsection 4.4.1, "Advance Payment" Clarified verbiage and use.
Subsection 4.4.2, "Aggregated –
Internet"
Clarified verbiage and use.
Subsection 4.4.3, "Delayed Delivery" Clarified verbiage and use.
Subsection 4.4.6, "Recurring Billing" Updated reference from 4.4.11 "Split Shipment" to 4.4.6
"Merchant-Initiated Transactions" and updated Recurring
Billing requirements.
Glossary of Terms Added/modified definitions.
Table of Contents
Summary of Changes Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 About American Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 About the Merchant Operating Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.3 Organization of the Merchant Operating Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.4 Changes in the Merchant Operating Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2 Doing Business with American Express . . . . . . . . . . . . . . . . . . . . . . . . . . .4
2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2 Benefits of Accepting the American Express Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 Merchant Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.4 Compliance with the Technical Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.5 Establishment Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.6 Verification and Disclosure of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.7 Permitted Uses of Merchant Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.8 Cardmember Offers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3 Card Acceptance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
3.1 Card Acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.2 Treatment of the American Express Brand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.3 Prohibited Uses of the Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.4 Prohibited Merchants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.5 Treatment of American Express Cardmember Information . . . . . . . . . . . . . . . . . . . . . . . 11
4 Transaction Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.1 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.2 In-Person Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3 Card Not Present Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.4 Other Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
4.5 Charge and Credit Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
4.6 Use of Third Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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5 Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
5.1 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
5.2 The Purpose of Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
5.3 Authorization Time Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
5.4 Estimated Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
5.5 Partial Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
5.6 Floor Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
5.7 Authorization Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
5.8 Possible Authorization Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
5.9 Obtaining an Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
5.10 Card Identification (CID) Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
5.11 Authorization Reversal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
5.12 Pre-Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
6 Submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
6.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
6.3 Purpose of Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
6.4 Submission Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
6.5 Submission Requirements – Electronic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
6.6 Submission Requirements – Paper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
6.7 How to Submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
7 Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
7.1 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
7.2 Settlement Amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
7.3 Payment Errors or Omissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
7.4 Collecting from Cardmembers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
8 Protecting Cardmember Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
8.1 Data Security Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
8.2 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
8.3 Targeted Analysis Program (TAP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
8.4 Standards for Protection of Encryption Keys, Cardholder Data, and Sensitive
Authentication Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
8.5 Data Incident Management Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
8.6 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
8.7 Periodic Validation of Merchant Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
8.8 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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8.9 Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
9 Fraud Prevention. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
9.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
9.3 Strategies for Deterring Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
9.4 Card Acceptance Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
9.5 Card Security Features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
9.6 Recognizing Suspicious Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
9.7 Prepaid Card Security Features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
9.8 Recognizing Suspicious Activity for Prepaid Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
9.9 Travelers Cheque and Gift Cheque Security Features . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
9.10 Fraud Mitigation Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64
10 Risk Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
10.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
10.2 Prohibited Merchants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
10.3 Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
11 Chargebacks and Inquiries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78
11.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
11.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
11.3 Disputed Charge Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
11.4 Chargeback Reasons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
11.5 Compelling Evidence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
11.6 Inquiry Reasons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92
11.7 How We Chargeback. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
11.8 Tips for Avoiding Chargebacks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
12 Specific Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
12.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
12.2 Auto Dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
12.3 Business-to-Business (B2B)/ Wholesale Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
12.4 Charitable Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
12.5 E-Commerce Businesses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
12.6 Government/Utilities/Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
12.7 Installment Payment Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
12.8 Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
12.9 Internet/Online Pharmacies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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12.10 Oil/Petroleum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
12.11 Online/Mail Order Tobacco Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
12.12 Rental Establishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
12.13 Travel Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
12.14 Transit Contactless Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
13 Dispute Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
13.1 Arbitration Agreement (as to Claims involving American Express). . . . . . . . . . . . . . . . 112
Glossary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
List of Tables
Table 4-1: Actions for In-Person Charges .................................................................................................... 20
Table 4-2: Acceptance Procedures ...............................................................................................................27
Table 5-1: Estimated Charge Amount .......................................................................................................... 35
Table 5-2: Authorization Response .............................................................................................................. 38
Table 8-1: Merchant Validation Documentation ......................................................................................... 53
Table 8-2: Service Provider ........................................................................................................................... 54
Table 9-1: Card Not Present Fraud Tools .................................................................................................... 65
Table 9-2: Card Present Fraud Tools ........................................................................................................... 66
Table 10-1: Prohibited Business Types ........................................................................................................ 68
Table 10-2: High Risk Merchants ...................................................................................................................75
Table 10-3: Risk Management Definitions ................................................................................................... 76
Table 11-1: Chargeback Reasons ....................................................................................................................81
Table 11-2: Compelling Evidence for Goods/Services Not Received or Only Partially Received .......... 90
Table 11-3: Compelling Evidence for Card Not Present Fraud .................................................................. 90
Table 11-4: Inquiry Reasons .......................................................................................................................... 92
Table 12-1: MCC Codes and Descriptions .................................................................................................. 100
Table 12-2: CARDeposit Program Procedures .......................................................................................... 105
Table 12-3: Contactless Transit Authorization and Submission Requirements ................................... 108
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
2
Merchant Operating Guide - U.S.
Introduction :: About American Express
1.1 About American Express
American Express was established more than 160 years ago and has undergone remarkable
changes over the years. One characteristic has remained constant, however: our commitment
to the core values of our founders. American Express is guided by a value system that is
steadfastly focused on doing business in more than 130 countries around the globe with trust
and integrity, delivering quality products and services to our valued customers.
The American Express Network operates worldwide, including in Territories where Applicable
Law, or other considerations, may require that certain of our Affiliates or licensees act as
Acquirers.
The Network also supports millions of Merchants globally and processes a vast number of
Transactions daily, forging relationships between Cardmembers and Merchants. We help build
the businesses of millions of Merchants, from neighborhood shops to multinational
corporations.
1.2 About the Merchant Operating Guide
We are pleased to provide the American Express Merchant Operating Guide. It offers best
practices, helpful tips, and available tools to assist your businesses. You can be more
successful if you have access to and understand Card acceptance policies and procedures.
To serve all Merchants consistently, we require them to operate under the Merchant Operating
Guide.
This Merchant Operating Guide sets forth the policies and procedures governing your
acceptance of the American Express
®
Card. It is a part of, and is hereby incorporated by
reference into, the Merchant Agreement with your Merchant Services Provider ("the
Agreement"). You agree to be bound by and accept all provisions in the Merchant Operating
Guide (as changed from time to time) as if fully set out in the Agreement and as a condition of
your agreement to accept the Card.
You should consult with your Merchant Services Provider for further information about any
policy or procedure contained in the Merchant Operating Guide.
1.2.1 Intended Audience for this Guide
This Merchant Operating Guide is intended for use by Merchants that have entered into a legally
binding Agreement with a Merchant Services Provider based in the United States Region to
accept the American Express
®
Card. While not an exhaustive list, qualifying Merchants:
• are physically located and maintain a bank account at a financial institution in the United
States Region;
• have an estimated annual American Express Charge volume that meets the program
requirements as communicated to you by your Merchant Services Provider; and,
• transact in U.S. currency (USD) only and receive payment from its Merchant Services
Provider into a local bank account.
1.3 Organization of the Merchant Operating Guide
The American Express Merchant Operating Guide is designed to meet the needs of busy
Merchants. The content is organized into:
• global policies that apply to your Establishment, and
• country-specific policies that apply to your Establishments located in the specific country
listed.
Information boxes like this one
are displayed throughout the
Merchant Operating Guide to
highlight important information
such as definitions, fraud alerts,
helpful tips, and further
information.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
3
Merchant Operating Guide - U.S.
Introduction :: Changes in the Merchant Operating Guide
In the event of any conflict between the global policies and country-specific policies, the
requirements of the country-specific policies take precedence. In the event of any conflict
between the Agreement and Applicable Law, the requirements of law govern.
The Merchant Operating Guide follows the flow of the Transaction process—from Card
acceptance, to Authorization, to Submission, to Settlement, to Disputed Charges, to
Chargebacks. To make it easier for you to locate the information you need quickly, the
Merchant Operating Guide was designed with the following functionality:
• Important information is identified throughout the Merchant Operating Guide using the
information boxes to the left of the main text.
• Point-and-click links to and from chapters are identified by blue underlined text
when
viewing the Merchant Operating Guide online.
• A table of contents and comprehensive glossary are provided in the Merchant Operating
Guide.
• Capitalized terms used in the Merchant Operating Guide have the meanings ascribed to
them in the Glossary of Terms. In addition, certain specialized terms also appear and are
defined in the chapter or section in which they are used.
• All amounts referenced herein are stated in U.S. Dollars.
1.4 Changes in the Merchant Operating Guide
American Express reserves the right to make changes to the Merchant Operating Guide in
scheduled changes and at any time in unscheduled changes as set forth in Subsection 1.4.1,
"Scheduled Changes" and Subsection 1.4.2, "Unscheduled Changes" below. You agree to
accept all such changes (and further to abide by the changed provisions of the Merchant
Operating Guide) except where Applicable Law takes precedence. You may obtain the latest
version of the Merchant Operating Guide by visiting www.americanexpress.com/
merchantopguide, or by contacting your Merchant Services Provider.
1.4.1 Scheduled Changes
The Merchant Operating Guide is published twice each year, in April and October. We may
change the provisions of the Merchant Operating Guide in scheduled changes as follows:
• a release of scheduled changes, to be published every April, with changes that shall take
effect in the following October or on such other date as we set forth in the Merchant
Operating Guide, and
• a release of scheduled changes, to be published every October, with changes that take
effect in the following April or on such other date as we set forth in the Merchant Operating
Guide.
Where a scheduled change is to take effect during the period between two editions of the
Merchant Operating Guide, we will also include the change in the edition of the Merchant
Operating Guide covering the period during which the change shall take effect, noting the
effective date of the change.
1.4.2 Unscheduled Changes
American Express may also change the provisions of the Merchant Operating Guide in separate
unscheduled releases at any time, which shall take effect ten (10) days after the release is
posted to www.americanexpress.com/
merchantopguide unless another effective date is
specified in the notice.
You should read the global
policies together with any
country-specific policies that
follow. The two sections are
organized
one after the other,
making it easier to read and find
the information you need.
2
Doing Business with American
Express 2
2.1 Introduction
2.2 Benefits of Accepting the American Express Card
2.3 Merchant Information
2.4 Compliance with the Technical Specifications
2.5 Establishment Closing
2.6 Verification and Disclosure of Information
2.7 Permitted Uses of Merchant Information
2.8 Cardmember Offers
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
5
Merchant Operating Guide - U.S.
Doing Business with American Express :: Introduction
2.1 Introduction
At American Express, we feel privileged to do business with Merchants like you and want to
help make the process of accepting Cards as simple as possible. The Merchant Operating Guide
explains the policies and procedures related to accepting American Express Cards. It also
highlights some of the services and tools that can help your business. This chapter outlines
some general concepts that relate to doing business with American Express.
2.2 Benefits of Accepting the American Express Card
The decision you have made to accept the American Express Card demonstrates a
commitment to the millions of Cardmembers who carry the Card. Accepting the Card allows
you to:
• offer your customers the convenience of paying with American Express Cards, and
• improve retention by allowing customers with recurring Charges to pay automatically.
2.3 Merchant Information
You agree that, upon providing contact information to your Merchant Services Provider,
American Express may send you commercial marketing messages, including information on
products, services, and resources available to your business. These messages may be sent to
the mailing address, phone numbers, email addresses, or fax numbers you provide. If you
provide a wireless phone number, you agree that American Express may contact you at that
number and the communication American Express sends may include autodialed short
message service (SMS or "text") messages or automated or prerecorded calls. If you provide a
fax number, you agree that American Express may send you fax communications. American
Express may otherwise use and share your information for business purposes and as
permitted by Applicable Law. American Express uses reasonable administrative, technical, and
physical security measures to protect Merchant information consistent with the sensitivity of
the information.
You may opt out of receiving American Express commercial marketing communications about
products and services by contacting your Merchant Services Provider directly via inbound
telephone, email, website, or any other means identified by your Merchant Services Provider, or
by exercising any opt-out option that American Express may describe or offer in emails, SMS
messages, faxes, or other communications. If you have opted-out, you may continue to receive
important transactional or relationship communications from American Express. In addition,
you may continue to receive marketing communications from American Express while
American Express updates its records to reflect your opt-out choice.
2.4 Compliance with the Technical Specifications
A vast number of Transactions traverse, and are processed by, the American Express Network.
Merchants, processors, Terminal Providers, and others must conform to the American Express
Technical Specifications in order to connect to and transact on the Network.
Each Authorization request and Transaction, including data contained therein, must comply
with the American Express Technical Specifications, any other (or different) requirements of
our local operating centers and Applicable Law. We reserve the right to modify the American
Express Technical Specifications or requirements of our local operating centers.
You must ensure that you and any third parties you enlist to facilitate Transaction processing
comply with the American Express Technical Specifications (valid and accurate data must be
Incorrect information may result
in servicing issues. For example,
if your business name changes
and American Express is not
notified, your customers may
not recognize the Charge on
their statements. This could
result in Disputed Charges.
Please contact your Merchant
Services Provider if your
business information changes.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
6
Merchant Operating Guide - U.S.
Doing Business with American Express :: Establishment Closing
provided for all data elements in accordance with the American Express Technical
Specifications).
Contact your Merchant Services Provider for further information about complying with these
specifications.
2.4.1 Merchant Category Codes
You must use the Merchant Category Code (MCC) that most closely represents your business
and industry classification. You must use the most accurate MCCs in all Authorizations and
Submissions. If you have multiple, clearly distinct businesses that may qualify for more than
one MCC, then those businesses should be segmented across the appropriate MCCs and
Merchant Numbers. If you have multiple businesses, but a distinction between them is not
clear or cannot reasonably be determined, then you should use the MCC which most closely
represents your primary business.
If the MCC used in the Submission does not match the MCC of the corresponding
Authorization, you agree to remediate the mismatch as soon as possible, at your own expense
and in accordance with any instructions you may receive from us or your Merchant Services
Provider. Failure to comply with MCC data requirements may result in the assessment of non-
compliance fees. Please work with your Merchant Services Provider if you have questions
related to your MCC assignment.
We reserve the right to require corrections to the MCC assignments if we determine, in our sole
discretion, an incorrect MCC was assigned.
2.4.2 Compliance with Payment Product Terms and Conditions
We offer various payment processing solutions and products. If you choose to utilize one or
more such products, you and your Merchant Services Provider must comply with the
corresponding terms and conditions, which we may update from time to time, and which are
available at www.americanexpress.com/merchantspecs
. In the event of any conflict between
the terms and conditions of the payment processing product and the Merchant Operating
Guide, the terms and conditions of the payment processing product will prevail. All products
and services may not be available to all Merchants.
2.5 Establishment Closing
If you close any of your Establishments, you must follow these guidelines:
• Notify your Merchant Services Provider and follow their guidelines for notification of
Establishment closing.
• Your policies must be conveyed to the Cardmember prior to completion of the Charge and
printed on the copy of a receipt or Charge Record the Cardmember signs.
• If you are not providing refunds or exchanges, post notices indicating that all sales are final
(e.g., at the front doors, by the cash registers, on the Charge Record and on your websites
and catalogs).
• Your return and cancellation policies must be clearly disclosed at the time of sale.
• For Advance Payment Charges or Delayed Delivery Charges, you must either deliver the
goods or services for which you have already charged the Cardmember or issue Credit for
any portion of the Charge for which you have not delivered the goods or services.
If you are unsure of the MCC
assigned to you, please contact
your Merchant Services
Provider. We also recommend
that you review your
Authorization and Submission
data periodically to ensure it
accurately represents your
industry classification. If it is not
accurate, please contact your
Merchant Services Provider.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
7
Merchant Operating Guide - U.S.
Doing Business with American Express :: Verification and Disclosure of Information
2.6 Verification and Disclosure of Information
You acknowledge that when you provide information to your Merchant Services Provider that
such information may be disclosed and shared with your Merchant Services Provider's agents,
subcontractors, Affiliates, and other parties, including American Express, industry
organizations, and reporting agencies, for any purpose permitted by Applicable Law. American
Express collects and retains such information, shares such information with Affiliates and its
other business lines, and may use such information to improve services, prevent fraud, and for
other business purposes, including conducting analytics and making information available to
certain third-parties, including for tax reconciliation or expense management services and their
users.
You further acknowledge that, by entering into the Agreement with your Merchant Services
Provider, you provide permission to obtain or disclose information in connection with the
Agreement, consent to American Express' disclosure of such information for the foregoing
purposes, and hereby release and waive any right or Claim arising out of or related to such
disclosure, including defamation Claims, even if the information that is disclosed is incorrect or
incomplete. You acknowledge that your business name and the name of your principals may be
reported to the MATCH™ (Member Alert to Control High Risk Merchants) listing maintained by
MasterCard. You hereby specifically consent to the reporting, and waive and hold American
Express and your Merchant Services Provider harmless from all Claims and liabilities you may
have as a result of such reporting.
2.7 Permitted Uses of Merchant Information
For the purpose of communicating your acceptance of the Card, American Express may use
your name, address (including website addresses or URLs), customer service telephone
numbers, and/or industry classification in any media at any time. The information is based on
that what you have provided to your Merchant Services Provider or that is otherwise publicly
available. In addition, the information you provide to your Merchant Services Provider may be
transferred to American Express or its Affiliates throughout the world, for example, to process
transactions and provide you with American Express products or services. Regardless of where
American Express processes your information, American Express still protects it in the manner
described in its online privacy statement and according to all Applicable Laws. For more
information on American Express' Online Privacy Statement, please visit https://
www.americanexpress.com/us/company/privacy-center/online-privacy-disclosures/.
2.8 Cardmember Offers
American Express wants to help encourage Cardmembers to seek out and shop at small
merchants that accept the American Express Card. From time to time, American Express may
include small merchants in Cardmember offers. There is no additional cost to your business to
be included in these offers.
For more information, visit www.americanexpress.com/us/small-business/shop-small
and
click on the Cardmember Offers tab. There you can view offer terms and conditions, determine
if your business is an eligible small merchant that is included in any offers, and access any
available signage to promote Cardmember offers, that you are included in, to your customers.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
9
Merchant Operating Guide - U.S.
Card Acceptance :: Card Acceptance
3.1 Card Acceptance
You must accept the Card as payment for goods and services sold
(other than those goods and services prohibited under
Section 3.3, "
Prohibited Uses of the Card"), or (if applicable) for
charitable contributions made, at all of your Establishments,
except as expressly permitted by Applicable Law. You are jointly
and severally liable for the obligations of your Establishments
under the Agreement.
By accepting the Card at your Establishment, you are providing
your customers with convenience and flexibility in the choice of
payment methods offered.
3.2 Treatment of the American Express Brand
For the past 160 years, American Express has built a brand that is synonymous with trust,
integrity, security, quality, and customer service. American Express works diligently to uphold
its reputation, and restrict Merchants from engaging in activities that would harm American
Express' business or brand.
Except as expressly permitted by Applicable Law, you must not:
• indicate or imply that you prefer, directly or indirectly, any Other Payment Products over
the Card,
• try to dissuade Cardmembers from using the Card,
• criticize or mischaracterize the Card or any of American Express' services or programs,
• try to persuade or prompt Cardmembers to use any Other Payment Products or any other
method of payment (e.g., payment by check),
• impose any restrictions, conditions, disadvantages, or fees when the Card is accepted that
are not imposed equally on all Other Payment Products, except for electronic funds
transfer, cash or check,
• suggest or require Cardmembers to waive their right to dispute any Transaction,
• engage in activities that harm American Express' business or the American Express Brand
(or both),
• promote any Other Payment Products (except your own private label card that you issue
for use solely at your Establishments) more actively than you promote the Card, or
• convert the currency of the original sale Transaction to another currency when requesting
Authorization or submitting Transactions (or both).
You may offer discounts or in-kind incentives from your regular prices for payments in cash,
ACH funds transfer, check, debit card, or credit/charge card, provided that (to the extent
required by Applicable Law): (i) you clearly and conspicuously disclose the terms of the
discount or in-kind incentive to your customers, (ii) the discount or in-kind incentive is offered
to all of your prospective customers, and (iii) the discount or in-kind incentive does not
differentiate on the basis of the Issuer or, except as expressly permitted by applicable state
statute, payment card network (e.g., Visa, MasterCard, Discover, American Express). The
offering of discounts or in-kind incentives in compliance with the terms of this paragraph will
not constitute a violation of the provisions set forth above in this Section 3.2, "
Treatment of the
American Express Brand".
3.2.1 Treatment of the American Express Marks
Whenever payment methods are communicated to customers, or when customers ask what
payments are accepted, you must indicate your acceptance of the Card and display American
You may issue policies related to
customer identification, and
define minimum Charge
amounts, subject to Applicable
Law and your Agreement with
your Merchant Services
Provider.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
10
Merchant Operating Guide - U.S.
Card Acceptance :: Prohibited Uses of the Card
Express' Marks (including any Card application forms provided to you) as prominently and in
the same manner as any Other Payment Products.
American Express' corporate logo, the “American Express
®
Blue Box” logo, is the strongest
visual symbol of American Express' image. The “Blue Box” represents and reinforces the high
quality service and values of American Express. The appropriate version of the “Blue Box” logo
must be displayed on all point-of-purchase materials and signs. The following guidelines apply
to your use of the “Blue Box” logo in communications:
• Maintain at least 1/3 “X” (where “X” is equal to the height of the Blue Box Logo) between
the Logo and any accompanying element
• The “Blue Box” logo minimum size is 3/8” and 1/2” is the preferred size.
• The “Blue Box” logo must always be shown in the pre-approved "American Express blue"
or, in one- or two-color communications, black.
You must not use American Express' Marks in any way that injures or diminishes the goodwill
associated with the American Express Mark, nor in any way (without American Express’ prior
written consent) indicate that American Express endorses your goods or services. You shall
only use American Express' Marks as permitted by the Agreement and shall cease using
American Express' Marks upon termination of the Agreement.
For additional guidelines on the use of American Express' Marks, contact your Merchant
Services Provider.
3.3 Prohibited Uses of the Card
You must not accept the Card for any of the following:
• any Transactions in the Prohibited Business Types set forth in Section 10.2, "
Prohibited
Merchants",
• amounts that do not represent bona fide sales of goods or services (or, if applicable,
amounts that do not represent bona fide charitable contributions made) at your
Establishments; for example, purchases at your Establishments by owners (or their family
members) or employees contrived for cash flow purposes, or payments that you have
accepted in order to advance cash to Cardmembers in connection with the Transaction,
• amounts that do not represent bona fide, direct sales by your Establishment to
Cardmembers made in the ordinary course of your business,
• Charges that the Cardmember has not specifically approved,
• costs or fees over the normal price of the goods or services (plus applicable taxes) that the
Cardmember has not specifically approved,
• damages, losses, penalties, or fines of any kind, except as provided in Section 4.4.9,
"Property Damage to Accommodations and Other Rentals" and Subsection 12.13.2.3,
"Capital Damages",
• unlawful/illegal activities, fraudulent business transactions or when providing the goods or
services is unlawful/illegal (e.g., unlawful/illegal online internet sales of prescription
medications or controlled substances; sales of any goods that infringe the rights of a
Rights-holder under laws applicable to American Express, you, or the Cardmember),
• overdue amounts or amounts covering returned, previously dishonored or stop-payment
checks (e.g., where the Card is used as a payment of last resort),
• amounts that represent repayment of a cash advance including, but not limited to, payday
loans, pawn loans, or payday advances,
• sales made by third parties, sales for goods and/or services provided by third parties, or
Entities conducting business in industries other than yours, or
• other items of which American Express or your Merchant Services Provider notifies you.
You must not use the Card to verify your customer's age.
An example of selling something
that infringes the rights of a
Rights-holder, is the sale of
counterfeit goods.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
11
Merchant Operating Guide - U.S.
Card Acceptance :: Prohibited Merchants
For more information on prohibited industries, and on how American Express monitors such
uses of the Card, see Chapter 10, "
Risk Evaluation".
3.4 Prohibited Merchants
Some Merchants, and/or some of their Establishments, are not eligible (or may become
ineligible) to accept the Card. Such Merchants or Establishments will be denied the privilege to
accept the Card if it is determined that they meet one or more of the criteria for a prohibited
Merchant, including the criteria set forth in Chapter 10, "
Risk Evaluation". For additional
information regarding Prohibited Merchants, contact your Merchant Services Provider directly.
3.5 Treatment of American Express Cardmember Information
Any and all Cardmember Information is confidential and the sole property of the Issuer,
American Express or its Affiliates.
Except as otherwise specified, you must not disclose Cardmember Information, nor use nor
store it, other than to facilitate Transactions at your Establishments in accordance with the
Agreement.
For more information about protecting Cardmember Information, see Chapter 8, "
Protecting
Cardmember Information".
Remember, if the Agreement
terminates, Cardmember
Information can only be retained
according to the Payment Card
Industry Data Security Standard
(PCI DSS), which is available at
www.pcisecuritystandards.org
.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
13
Merchant Operating Guide - U.S.
Transaction Processing :: Transaction Process
4.1 Transaction Process
The first step in understanding the Card acceptance process is to understand the American
Express Transaction process.
The following graphic illustrates the high level phases that occur throughout the Transaction
process. We will refer to this Transaction process at various points throughout the Merchant
Operating Guide.
* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.
All valid Transactions begin with a Cardmember's decision to make a purchase. Whether the
physical Card is used to facilitate a Card Present Charge, or the Cardmember provides their
Cardmember Information over the phone, via mail order, or the internet, the Transaction must
not be completed without the Card and/or information provided by the Cardmember.
To accept the Card for Charges at your Establishments, you must:
• clearly and conspicuously, disclose all material terms of sale before obtaining an
Authorization, and
• clearly and conspicuously inform Cardmembers at all points of interaction (e.g., sales
conducted in person, over the internet, mobile or via mail or telephone order) about what
Entity is making the sales offer, so that the Cardmember can clearly distinguish you from
any other party involved in the interaction (e.g., a vendor of goods or provider of services
you may engage, or another Merchant seeking to conduct business with the
Cardmember).
The Transaction Data you collect to facilitate the Charge must be, or have been, provided
directly to you by the Cardmember.
You must not accept or have accepted Transaction Data from, nor shall you provide or have
provided Transaction Data to, any third parties other than your Covered Parties. If you fail to
comply with this requirement, you may be assessed non-compliance fees and/ or have your
Card acceptance privileges at your Establishments suspended or disentitled.
DATA SECURITY
FRAUD DETECTION
TRANSACTION PROCESS
*
Cardmember
utilizes Card
for payment
Merchant
obtains
Authorization
Merchant
submits
Charge for
Settlement
Merchant
Services
Provider
settles with
Merchant
Cardmember
receives
billing
statement
A dispute
case is
opened
Merchants are not required to
have the Cardmember re-enter
the Transaction Data because
when Cardmembers make an
Application-initiated
Transaction or pay using other
mobile phone or tablet , the
Transaction Data collected to
facilitate the Card Not Present
Charge has already been
provided directly by the
Cardmember.
Transaction Data
All information required by
American Express evidencing
one or more Transactions,
including information obtained
at the point of sale, information
obtained or generated during
Authorization and Submission,
and any Chargeback.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
14
Merchant Operating Guide - U.S.
Transaction Processing :: In-Person Charges
4.2 In-Person Charges
In-Person Charges refer to Charges in which the Card and Cardmember are present at the point
of sale. An example of this is when a Cardmember presents a Card to the Merchant at a retail
store.
For all In-Person Charges, the Card must be presented. There are several ways in which an In-
Person Charge can be conducted. The steps taken vary according to how the following two
types of In-Person Charges are conducted:
• electronic Charges
• key-entered Charges
4.2.1 No PIN Program
You may participate in American Express' No PIN Program. The No PIN Program allows
Merchants not to request a signature or a PIN from Cardmembers on the Charge Record.
To qualify for the No PIN Program, both the Establishment and each Charge must meet the
following criteria:
Merchant criteria:
If you are classified in an industry that accepts In-Person Charges, then you may participate in
the No PIN Program with the exception of the following categories:
• Merchants who do not conduct In-Person Charges (i.e., internet, mail order or telephone
order).
• Prohibited Merchants or prohibited Transactions (or both) as defined in Chapter 10, "Risk
Evaluation". See also Section 3.3, "Prohibited Uses of the Card".
• High Risk Merchants (e.g., internet electronic services or nightclubs/lounges) as defined in
Section 10.3.1, "High Risk Merchants"
.
• Merchants placed in American Express' Fraud Full Recourse Program.
Charge criteria:
• The amount or Charge must meet the established threshold.
• The Charge submission must include the appropriate indicator to reflect that the Card and
the Cardmember were present at the point of sale.
• The Charge submission must include a valid Approval.
Under the No PIN Program, American Express will not exercise Chargeback for such Charges
based solely on your Establishment's failure to obtain the Cardmember's PIN at the point of
sale.
If disproportionate amounts or number of Disputed Charges are received under the No PIN
Program, you must work to reduce the amount or number of Disputed Charges. If such efforts
fail, American Express may place you in a Chargeback program and your Merchant Services
Provider and/or American Express may modify participation in the No PIN Program or revoke
or terminate your participation in the No PIN Program
The established threshold for Charges to qualify under the No PIN Program is $200 or less for
Contactless and for all other In-Person Charges.
Note: Obtaining Cardmember signature on Card Present Transactions is optional to complete a
Charge Record, and at your discretion, unless required by Applicable Law.
American Express offers a
variety of fraud prevention
solutions that can be enabled at
the point of sale. Contact your
Merchant Services Provider for
information related to fraud
prevention solutions that may
be available for your use.
The No PIN Program does not
provide protection against all
Chargebacks. Even if an
Establishment and Charge
qualify under the No PIN
Program, you may still be
subject to Chargeback for
reasons unrelated to your failure
to obtain a PIN from the
Cardmember at the point of sale.
Consult with your Merchant
Services Provider for more
information about Disputed
Charges and Chargebacks.
For Merchants who choose to
implement American Express
Quick Chip and the No PIN
Program, please refer to
Subsection 4.3.1.2.2, "American
Express Quick Chip" for more
information about potential
fraud liability shift impacts.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
15
Merchant Operating Guide - U.S.
Transaction Processing :: In-Person Charges
4.2.2 Unattended Terminals
Charges for purchases at Customer Activated Terminals (CATs) or payment kiosks will be
accepted provided you meet the requirements for Charge Records as detailed in Section 4.5,
"Charge and Credit Records" as well as comply with the Technical Specifications (see
Section 2.4, "Compliance with the Technical Specifications"
). Please contact your Merchant
Services Provider for additional information on CAT requirements.
You must:
• include in all requests for Authorization full Magnetic Stripe stream or Chip Card Data;
• ensure the Charge complies with the Technical Specifications, including flagging all
requests for Authorization and all Charge submissions with a CAT indicator, where
technically feasible;
• follow any additional Authorization procedures that we may provide to you if you
accept the Card at an unattended terminal that is part of, or attached to, a fuel
dispenser; and
• ensure that the unattended terminals notifies the Cardmember if the Transaction is
declined, where technically feasible.
If an unattended terminal is not configured for Chip or Chip and PIN Transactions, then you
may still accept the Card. However, if you do so, you will be liable for any losses and American
Express will have Chargeback rights for fraudulent In-Person Charges made with lost, stolen,
non-received and/or counterfeit Chip Cards. See Subsection 4.2.1, "No PIN Program"
and
Subsection 4.2.3.2, "Contact Chip Card Charges"
for additional information.
4.2.3 Electronic Charges
Electronic POS Systems automatically capture required information from the Card so it can be
used to request Authorization for the Charge. Electronic charges can be conducted in a variety
of ways depending on the type of Card presented.
• Magnetic Stripe Cards – contain Cardmember and Card account information on the stripe
on the back of the Card, or in a contactless Chip embedded in the Card.
• Chip Cards – contain a Chip on which data is stored (including Cardmember and Card
account information), which the POS System can read in order to guide the processing of
the Transaction.
• Mobile Devices – An Issuer approved and American Express recognized electronic device
(including but not limited to, a mobile telephone, tablet, or wearable device) that is enabled
to initiate a Digital Wallet Payment Transaction.
Some Magnetic Stripe, Chip Cards, and Mobile Devices may be read over the contactless
interface of the POS System. The Charge Record is then created from the information captured
during the electronic Charge.
You must work with your Merchant Services Provider if you have questions about your POS
System’s capabilities.
4.2.3.1 Magnetic Stripe Card Charges
When presented with a Card at the point of sale, you must:
1. Verify that the Card is not visibly altered or mutilated (see Chapter 9, "Fraud Prevention"
for additional information),
2. Capture Magnetic Stripe data by swiping the Card (unless the Charge was already initiated
by waving the contactless Chip Card in close proximity to the POS System as described in
Subsection 4.2.3.3, "Contactless Chip Card Charges"
),
3. Obtain an Authorization Approval,
4. Verify the Card's Expiration Date,
Only the person whose name
appears on an American
Express Card is entitled to use it.
Cards are not transferable.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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5. Match the Card Number and the Expiration Date on the Card to the same information on
the Charge Record, and
6. Ensure the name that prints on the Charge Record matches the name on the front of the
Card.*
7. If you choose or are required by Applicable Law to obtain a Cardmember signature, see
Subsection 4.2.3.2.1, "Obtaining Signature for In-Person Charges".
* Except when the Cardmember name is not captured on the Charge Record or for Prepaid
Cards that do not show a name on their face.
If you encounter an In-Person Transaction that raises concern, refer to Subsection 4.2.5,
"Actions for In-Person Charges" and proceed accordingly.
4.2.3.2 Contact Chip Card Charges
When presented with a Chip Card to be inserted into a Chip Card reader, you must:
1. Verify that the Card is not visibly altered or mutilated (see Chapter 9, "Fraud Prevention"
for additional information).
2. Capture Chip Card Data by inserting the Card into the Chip Card reader.
The POS System will advise Cardmembers to enter their PIN (a Chip and PIN Charge) or
complete the Transaction without a PIN. You can also set your POS System to prompt the
Cardmember to sign for the Charge (a Chip and signature Charge). See
Subsection 4.2.3.2.1, "Obtaining Signature for In-Person Charges"
.
For Chip and PIN Charges: Cardmembers will enter their PIN into the POS System using
the keypad. If the Chip and PIN Charge is unable to be completed due to a technical
problem, the POS System will show an error message. Follow the procedures for a swiped
Charge in Subsection 4.2.3.1, "Magnetic Stripe Card Charges"
. Failure to validate the PIN,
when required, can render you liable for Chargebacks if the Cardmember disputes the
Charge. Validating a PIN may not be required if your Establishment and the Charge qualify
for the No PIN Program (see Section 4.2.1, "No PIN Program"
for additional information).
3. Obtain an Authorization Approval.
4. Verify the Card's Expiration Date.
5. Match the Card Number and the Expiration Date on the Card to the same information on
the Charge Record, and
6. Ensure the name that prints on the Charge Record matches the name on the front of the
Card.*
7. If you choose or are required by Applicable Law to obtain a Cardmember signature, see
Subsection 4.2.3.2.1, "Obtaining Signature for In-Person Charges"
.
* Except when the Cardmember name is not captured on the Charge Record or for Prepaid
Cards that do not show a name on their face.
In the case of Chip and PIN
Transactions, if the PIN is not
validated, you may be liable for
Chargebacks unless your
Establishment and the Charge
qualify for the No PIN Program
(see Section 4.2.1, "No PIN
Program".
Transactions that are manually
key-entered when a Chip Card is
presented may be subject to
counterfeit, lost/stolen and
non-received Chargebacks in
the event of a fraud dispute. To
minimize your risk of
Chargebacks, we recommend
that you avoid manually key-
entered Transactions.
Ensure that you comply with
Technical Specifications and
submit your MCC code
accurately in the Authorization
and Submission Transaction.
See Section 2.4, "Compliance
with the Technical
Specifications" for additional
details.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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If you use Enabled Chip and PIN POS Systems to process a Chip Transaction for Other Payment
Products, then you must configure those Enabled Chip and PIN POS Systems for American
Express Chip Cards in accordance with the Technical Specifications and other requirements
American Express makes available.
To avoid Chip Card fraud liability shift, you must use an Enabled Chip and PIN POS System that
can process Chip Cards at the time of the Transaction, and you must comply with all applicable
Card acceptance procedures. Chip Card fraud liability shift does not apply to contactless
Transactions or Digital Wallet Payments.
If your POS System is not an Enabled Chip and PIN POS System that can process Chip Cards,
and a Chip Card is presented, Chargeback may be exercised for counterfeit, lost, stolen, or non-
received fraud.
If your POS System is a Capable Chip and PIN POS System that can process Chip Cards and a
Chip Card is presented:
• Chargeback may be exercised for counterfeit, lost, stolen, or non-received fraud if a Chip
Card with PIN functionality is presented and the Charge is not submitted as a Chip and PIN
Charge because at the time of the Transaction, your Capable Chip and PIN POS System
was not configured to process the Chip and PIN Charge.
• Chargeback will not be exercised for counterfeit, lost, stolen, or non-received fraud for
Fallback Transactions, if after inserting the Chip Card, your POS System prompts you to
complete the Transaction by swiping the Magnetic Stripe of the Card, provided you follow
all applicable Card acceptance steps as outlined in Subsection 4.2.3.1, "Magnetic Stripe
Card Charges".
If you are presented with a Chip Card and manually key-enter the Transaction, you may be
subject to counterfeit, lost/stolen and non-received Chargebacks in the event of a fraud
dispute. Refer to your Merchant Services Provider's information on Disputes and Chargebacks
for further information.
4.2.3.2.1 Obtaining Signature for In-Person Charges
If you choose or are required by Applicable Law to obtain signature on a manual
imprint, printed, or electronic Card Present Charge, you must:
1. Obtain signature and verify that the signature is identical to the name on the
Card*, and
2. Compare the signature (when obtained) on the Charge Record with the signature
on the Card.
* Except when the Cardmember name is not captured on the Charge Record or for
Prepaid Cards that do not show a name on their face.
4.2.3.2.2 American Express Quick Chip
Chargeback may be exercised for EMV
®1
counterfeit or EMV lost, stolen or non-
received fraud if you implement American Express Quick Chip and the following
applies:
• You implement the No PIN program, and
• You are using a POS device which supports a provisional transaction amount, and
• The final transaction performed is over the No PIN threshold.
For more information on American Express Quick Chip, please work with your
Merchant Services Provider to determine which implementation approach best
meets your business needs.
1. EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark
elsewhere. The EMV trademark is owned by EMVCo, LLC.
For Merchants who choose to
implement American Express
Quick Chip and the No PIN
program, please refer to
Subsection 4.2.3.2.2, "American
Express Quick Chip" for more
information about potential
fraud liability shift impacts.
For more information on
American Express Quick Chip,
please work with your Merchant
Services Provider to determine
which implementation approach
best meets your business needs.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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4.2.3.3 Contactless Chip Card Charges
Some Chip Card Charges involve transmission of payment information when the Card is waved
in close proximity to a contactless reader. Merchants that choose to accept Contactless
payments must comply with the current American Express contactless POS System
requirements. Work with your Merchant Services Provider if you have questions related to
Contactless Chip Card acceptance.
When presented with a Chip Card to be read via a contactless reader, and the Charge qualifies
for the No PIN Program, you must:
1. Capture Magnetic Stripe or Chip Card Data using the contactless reader, and
2. Obtain an Authorization Approval.
For Charges that do not qualify under the No PIN Program, follow the Card acceptance
procedures outlined in either Subsection 4.2.3.1, "Magnetic Stripe Card Charges"
,
Subsection 4.2.3.2, "Contact Chip Card Charges"
, or Subsection 4.2.3.5, "Digital Wallet
Payments".
See Section 4.2.1, "No PIN Program"
for additional information.
4.2.3.4 Merchant-Presented Quick Response (MPQR)
If you have the ability to process MPQR Transactions, you must:
• have the Cardmember use their Mobile Device to scan the MPQR code;
• display the Quick Response (QR) code, which can be dynamic or static, for scanning by the
Cardmember;
• ensure the MPQR code is not altered or tampered with;
• receive a notification that the Transaction has been approved and check the Transaction
amount is correct before providing the goods or services. If you do not receive the
notification, you should contact us to confirm the status of the MPQR Transaction;
• contact us or decline the Transaction if you are suspicious of the Cardmember or receive
notification from us to do so; and
• retain records of MPQR Transactions. These can be in the form of a notification from us, an
invoice, or other documentation of the Transaction.
4.2.3.5 Digital Wallet Payments
Digital wallets within a Mobile Device facilitate Transactions as follows:
• For a Digital Wallet Contactless-initiated Transaction, the Mobile Device completes a Card
Present Charge by waving the device in close proximity to a contactless-enabled POS
System.
• For a Digital Wallet Magnetic Secure Transmission Transaction, the Mobile Device
completes a Card Present Charge by waving the device in close proximity to the magnetic
swipe-enabled POS System.
• For a Digital Wallet Application-initiated Transaction, the Mobile Device completes a Card
Not Present Charge (typically made online) using a software application within the Mobile
Device and not the contactless payment application.
When presented with a Mobile Device for a Card Present Charge, you should:
1. Capture Magnetic Stripe or Chip Card data by having the Cardmember wave the Mobile
Device in close proximity to the contactless reader or magnetic swipe-enabled POS
System. If you choose to accept contactless payments, you should consult with your
Merchant Services Provider to ensure compliance with the current American Express
contactless POS System requirements.
2. Obtain an Authorization Approval.
3. If you choose or are required by Applicable Law, obtain a signature, see
Subsection 4.2.3.2.1, "Obtaining Signature for In-Person Charges"
.
Mobile Devices do not have the
same security features as a
traditional plastic Card. For
instance, the screens on the
Mobile Device may not display all
the digits of the Card Number
and expiration date, or the
Cardmember name. Likewise,
there may not be a CID visible on
the handset screen.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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4. If applicable, have the Cardmember complete a Consumer Device Cardholder Verification
Method (CDCVM) on contactless initiated Transactions.
5. Continue to include an indicator in the Authorization that the Transaction is a contactless
Transaction, if applicable.
6. If a Mobile Device initiated Transaction cannot be processed for any reason, you should
request that the Cardmember provide the companion physical Card and complete the
Transaction by following the relevant Card acceptance procedures outlined in:
• Subsection 4.2.3.1, "Magnetic Stripe Card Charges"
, or
• Subsection 4.2.3.2, "Contact Chip Card Charges"
.
For Application-initiated Transactions, you should follow Card Not Present Charge policy as
described in Section 4.3, "Card Not Present Charges"
.
For a Transaction to be recognized as Digital Wallet Application-initiated Transaction, you
should:
1. Consult with your Merchant Services Provider to arrange for certification for Digital Wallet
Application-initiated Transactions.
2. Include appropriate indicators in the Authorization and Submission that the Transaction is
a Digital Wallet Application-initiated Transaction (see Section 2.4, "Compliance with the
Technical Specifications").
4.2.4 Key-Entered Charges
There are instances when you may need to key-enter an In-Person Charge. This occurs most
often when the POS System cannot read the Card.
If the Card cannot be read electronically, and you wish to key-enter the Transaction, then you
must:
1. Verify that the Card is not visibly altered or mutilated,
2. Key-enter the data,
3. Obtain an Authorization Approval,
4. Verify the Card's Expiration Date,
5. Match the Card Number and the Expiration Date on the Card to the same information on
the Charge Record, and
6. Validate the Card's presence by taking an imprint of the Card (the imprint is for your
records). Failure to validate the Card's presence by taking an imprint of the Card can
render you liable for Chargebacks if the Cardmember disputes the Charge.
You may still be subject to other fraud Chargebacks, including counterfeit, lost, stolen, and non-
received for manually key-entered Transactions.
You may also validate the Card's presence by performing Card Identification (CID) verification.
See Subsection 9.10.1, "Card Not Present Fraud Tools"
for additional information.
If you are presented with a Card and manually key-enter the Transaction, you may be subject to
counterfeit, lost/stolen and non-received fraud Chargebacks.
Charges initiated with a contactless-enabled mobile device must not be key-entered.
Only the person whose name
appears on an American Express
Card is entitled to use it. Cards
are not transferable.
In-Person Charges that must be
key-entered because the
Magnetic Stripe cannot be read
are more likely to be fraudulent.
See
Chapter 9, "Fraud
Prevention" to learn how to
inspect the Card and for
procedures to follow when you
suspect fraud. Transactions that
are manually key-entered when
a Chip Card is presented may be
subject to counterfeit, lost/
stolen and non-received
Chargebacks in the event of a
fraud dispute. To minimize your
risk of Chargebacks, avoid
manually key-entered
Transactions whenever
possible.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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Contact your Merchant Services Provider for additional guidance or to obtain information on
fees assessed on Key-entered Charges.
4.2.5 Actions for In-Person Charges
The following table describes the course of action required during an In-Person Transaction
process:
Table 4-1: Actions for In-Person Charges
If Then
The Card is obviously altered or counterfeit. Do not accept the Card.
The Cardmember is attempting to use the
Card outside of its Valid Dates.
Note: Cards are valid through the last day of
the month on the front of the Card.
Do not accept the Card. Advise the
Cardmember to contact the customer service
number on the back of the Card.
It appears that someone other than the
Cardmember is attempting to use the Card.
Do not accept the Card. Indicate that the
Cards are non-transferable and that only the
Cardmember is permitted to use the Card.
The signature does not match the name on
the Card.
Contact your Merchant Services Provider with
a Code 10.
You are unable to obtain Authorization
electronically.
Contact your Merchant Services Provider to
obtain an Authorization.
The Authorization is Declined. Do not accept the Card and follow your
internal policies for handling various
Authorization responses. See Section 5.8,
"Possible Authorization Responses".
The customer presents an unsigned Card. An unsigned Card is invalid. Show customer
that the Card is not signed. Ask the customer
to sign the Card and also request photo
identification (ID) such as a valid driver's
license or passport to compare the
signatures.
The customer's signature on the Charge
Record does not appear to match the
customer's signature on the Card.
Contact your Merchant Services Provider with
a Code 10, or if you prefer, simply decline to
accept the Card.
The Card Numbers and Valid Dates on the
Card do not match the Charge Record.
The name on the Charge Record does not
match the name on the Card (except in the
case of a Prepaid Card which may not show a
name on its face).
The appearance of the Card, or the actions of
the customer appear suspicious.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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4.3 Card Not Present Charges
Mail orders, telephone orders, and Internet Orders increase your business opportunities, but
such Card Not Present Charges do not provide you the opportunity to inspect the physical
Card. For these Card Not Present Charges, fraud might be difficult for you to detect.
You must:
For Card Not Present Charges, you must create a Charge Record as described in Section 4.5,
"Charge and Credit Records". The information you must obtain in order to proceed with the
Transaction includes:
• Card Number or Token, and
• Card or Token Expiration Date.
In addition, it is recommended that you ask for:
• name as it appears on the Card,
• Cardmember's billing address, and
• ship-to address, if different from the billing address.
American Express has the right to Chargeback for any Card Not Present Charge that the
Cardmember denies making or authorizing. American Express will not Chargeback for such
Charges based solely upon a Cardmember claim that they did not receive the disputed goods if
you have:
• verified the address to which the goods were shipped was the Cardmember's full billing
address, and
• provided Proof of Delivery signed by the Cardmember or an authorized signer of the Card
indicating the delivery of the goods or services to the Cardmember's full billing address.
American Express will not be liable for actual or alleged fraudulent Transactions over the
internet and American Express will have the right to Chargeback for those Charges.
For Internet Orders, you must:
• use any separate Merchant Numbers established by your Merchant Services Provider for
Internet Orders in all your requests for Authorization and Submission of Charges, and
• provide your Merchant Services Provider written notice of any change in your internet
address, in accordance with your Merchant Services Provider's instructions.
Additionally, if a Disputed Charge arises involving a Card Not Present Charge that is an Internet
Electronic Delivery Charge, American Express may exercise Chargeback for the full amount of
the Charge.
Ensure that your Proof of Delivery includes a courier receipt with the following information at
minimum:
Obtain Cardmember
Information as
described below
Obtain an
Authorization
Approval
Submit the
Charge to
American Express
If you ship goods to an alternate
address, we recommend that
you keep a record of this. Then
you can show a record of
previous undisputed
Transactions which were
shipped to this address.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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• date merchandise was delivered,
• full name of recipient, and
• full shipping address (e.g., suite or apartment number, city, state/province, zip/postal
code, country).
When providing Proof of Delivery, a signature from the Cardmember or an authorized signer of
the Card is not required.
Contact your Merchant Services Provider for additional information and guidance on
processing Card Not Present Charges.
4.4 Other Charges
4.4.1 Advance Payment
Advance Payment Charges are available for custom-orders (e.g., orders for goods to be
manufactured to a customer’s specifications), entertainment/ticketing (e.g., sporting events,
concerts, season tickets), tuition, room and board, and other mandatory fees (e.g., library fees)
of higher educational institutions, and travel-related services (e.g., tours, guided expeditions).
If you offer Cardmembers the option or require them to make Advance Payment Charges, you
must:
• State your full cancellation and refund policies, clearly disclose your intent and obtain
written consent from the Cardmember to bill the Card for an Advance Payment Charge
before you request an Authorization. The Cardmember's consent must include:
their agreement to all the terms of the sale (including price and any cancellation and
refund policies), and
a detailed description and the expected delivery date of the goods and/or services to
be provided.
• Obtain Authorization, and Approval.
• Complete a Charge Record. If the Advance Payment Charge is a Card Not Present Charge,
you must also:
ensure that the Charge Record contains the words "Advance Payment" (see
Section 4.5, "Charge and Credit Records"
), and
within twenty-four (24) hours of the Charge being incurred, provide the Cardmember
written confirmation (e.g., email or facsimile) of the Advance Payment Charge, the
amount, the confirmation number (if applicable), a detailed description and expected
delivery date of the goods and/or services to be provided and details of your
cancellation/refund policy.
If you cannot deliver goods and/or services (e.g., because custom-ordered merchandise
cannot be fulfilled), and if alternate arrangements cannot be made, you must immediately
issue a Credit for the full amount of the Advance Payment Charge which cannot be fulfilled.
In addition to other Chargeback rights, American Express may exercise Chargeback for any
Disputed Advance Payment Charge or portion thereof if, in American Express' sole discretion,
the dispute cannot be resolved in your favor based upon unambiguous terms contained in the
terms of sale to which you obtained the Cardmember's written consent.
Specific industries may have additional requirements or obligations to process Advance
Payments.
Purchases involving Advance
Payment Charges generally
carry a higher level of risk than
other Charges, due to the fact
that goods and services are not
provided at the time the Charge
is processed.
Check your Merchant Services
Provider's policies for
withholding settlement for part
or all of such Charges until it is
determined that the risk has
diminished.
To minimize your risk of a
Disputed Advance Payment
Charge, always:
• clearly disclose all
reservation, sales,
cancellation, and refund
policies and
• retain a copy of the
Cardmember's written
consent, including a
detailed description and
expected delivery date of
the goods and/or services
to be provided in a format
that easily allows you to
respond to an Inquiry.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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4.4.2 Aggregated – Internet
This Subsection 4.4.2, "Aggregated – Internet"
applies to Transactions processed by your
Establishments conducting business over the internet. When processing Aggregated Charges,
you must meet the following criteria:
• Clearly disclose your intent and obtain consent from the Cardmember that their purchases
or refunds (or both) on the Card may be aggregated and combined with other purchases
or refunds (or both) before you request an Authorization.
• Each individual purchase or refund (or both) that comprises the Aggregated Charge must
be incurred under the same Merchant Number and on the same Card.
• Obtain Authorization of no more than $15or such other amount as notified to you by your
Merchant Service Provider.
• Create a Charge Record for the full amount of the Aggregated Charge.
• The amount of the Aggregated Charge must not exceed $15 (or such other amount as
notified to you) or the amount for which you obtained Authorization which ever is lower.
• Submit each Charge Record in accordance with Section 6.5, "Submission Requirements –
Electronic". ACharge will be deemed "incurred" for purposes of this subsection, on the
date of the first purchase or refund (or both) that comprises the Aggregated Charge.
• Provide the Cardmember with an email containing:
the date, amount, and description of each individual purchase (and/or refund as
applicable) that comprises the Aggregated Charge, and
the date and the amount of the Aggregated Charge.
4.4.3 Delayed Delivery
To accept the Card for Delayed Delivery Charges, you must:
• Clearly disclose your intent and obtain written consent from the Cardmember to perform a
Delayed Delivery Charge before you request an Authorization,
• Obtain a separate Authorization Approval for each of the two Delayed Delivery Charges on
their respective Charge dates,
• Clearly indicate on each Delayed Delivery Charge Record that the Charge is either for the
“deposit” or for the “balance” of the Delayed Delivery Charge,
• Submit the Delayed Delivery Charge Record for the balance of the purchase only after the
goods have been shipped, provided or services rendered,
• Submit each Delayed Delivery Charge Record within seven (7) days of the Charge being
incurred. The Charge will be deemed "incurred":
for the deposit – on the date the Cardmember agreed to pay the deposit for the
purchase.
for the balance – on the date the goods are shipped, provided or services are
rendered.
• Submit and obtain Authorization each Delayed Delivery Charge under the same Merchant
Number, and
• Treat deposits on the Card no differently than you would treat deposits on all Other
Payment Products.
4.4.4 Credentials-on-File
If you store Cardmember account data for Transaction processing you must ensure the
Credentials-on-File include any Cardmember account data, including, but not limited to,
Primary Account Number (PAN) or Token, that is stored by or on behalf of Merchants.
You must obtain Cardmember consent before storing Cardmember credentials. It is
recommended that you process an initial Authorization upon receiving Cardmember consent
to store credentials.
To minimize your risk of a
Disputed Charge with
Aggregated Charges, always:
• confirm to the Cardmember
the Aggregated Charge
amount and individual
purchase details (and/or
refund as applicable) at
check-out, and
• in the email confirmation,
advise where the
Cardmember can find
additional information
about their purchases
(and/or refunds as
applicable).
To minimize your risk of a
Disputed Charge with Delayed
Delivery Charges, always:
• clearly disclose all sales and
refund policies and
• retain a copy of the
Cardmember's written
consent in a format that
easily allows you to respond
to an Inquiry.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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You may store Cardmember credentials to initiate Merchant-Initiated Transactions (MITs).
Cardmembers may also use their stored credentials to initiate Transactions.
You must adhere to our Specifications (see Section 2.4, "Compliance with the Technical
Specifications").
4.4.5 Merchant-Initiated
A Merchant-Initiated Transaction (MIT) is a Transaction that is initiated by the Merchant
through use of Credentials-on-File without direct participation from the Cardmember.
Merchants must obtain Cardmember consent to initiate an MIT, or a series of MITs, after
storing a Cardmember's credentials. Cardmember consent for MITs and Credentials-on-File
may be obtained simultaneously.
It is recommended that Merchants submit MITs only after an initial Cardmember-Initiated
Transaction (CIT) or an initial Authorization accompanying a Cardmember's request to store
credentials.
It is recommended that Merchants submit MITs with the following data elements in the
Authorization Request:
• Merchant-Initiated Transaction (MIT) indicator
• Original Transaction Identifier (O-TID)
Merchants must adhere to the requirements in Section 4.3, "Card Not Present Charges"
when
processing MITs.
4.4.6 Recurring Billing
Recurring Billing is a payment method where the Cardmember consents and authorizes the
Merchant to Charge the Cardmember's Card account on a periodic basis (e.g., membership
fees to health clubs, magazine subscriptions, and insurance premiums). Each payment may be
for a variable or a fixed amount. Merchants should adhere to the requirements in
Subsection 4.4.5, "Merchant-Initiated"
when processing Merchant-Initiated Charges for
Recurring Billing.
Before submitting your first Recurring Billing Charge you must:
• clearly and conspicuously disclose all material terms of the offer including, if applicable,
the fact that Recurring Billing Charges will continue until the option is canceled by the
Cardmember;
• obtain the Cardmember's express consent to bill their Card and the Recurring Billing
Charges terms before submitting the first Recurring Billing Charge;
• obtain the Cardmember's name, the Card number, the Cardmember's signature (if
applicable), Card expiry date, the Cardmember's billing address, and a statement
confirming consent for you to charge their Card for the same or different amounts at
specified or different times;
• within twenty-four (24) hours of incurring the first Recurring Billing Charge, provide the
Cardmember written confirmation (e.g., email or facsimile) of such Charge, including all
material terms of the option and details of your cancellation/refund policy;
• comply with any instructions of which your Merchant Services Provider may reasonably
notify you;
• notify the Cardmember that they are able to discontinue Recurring Billing Charges at any
time and provide contact details for canceling Recurring Billing Charges; and
To minimize your risk of
Chargeback with Recurring
Billing Charges, always:
• ensure updates are applied
in a timely manner when
notified of Cardmember
cancellation or Card Number
update, and
• obtain express consent from
the Cardmember to
continue billing after the end
date of the contract.
For more tips on reducing
Chargebacks, see Chapter 11,
"Chargebacks and Inquiries".
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Transaction Processing :: Other Charges
• ensure that your process for cancellation of Recurring Billing is simple and expeditious.
Where the material terms of the option change after Submission of the first Recurring Billing
Charge, promptly notify the Cardmember in writing of such change and obtain the
Cardmember's express written consent to the new terms prior to submitting another
Recurring Billing Charge.
The method you use to secure the Cardmember's consent must contain a disclosure that you
may receive updated Card account information from the financial institution issuing the
Cardmember's Card. You must retain evidence of such consent for two (2) years from the date
you submit the last Recurring Billing Charge.
If notification is required prior to each varying Recurring Billing Charge, you must notify the
Cardmember of the amount and date of each Recurring Billing Charge:
• at least ten (10) days before submitting each Charge; and
• whenever the amount of the Charge exceeds a maximum Recurring Billing Charge amount
specified by the Cardmember.
In addition to our other Chargeback rights, American Express may exercise Chargeback for any
Charge that does not meet the requirements set forth in this Subsection 4.4.6, "Recurring
Billing"" and Subsection 4.4.6.1, "Introductory Offers". We may exercise our Chargeback rights
for any Charge of which you have notified the Cardmember and to which the Cardmember
does not consent or if you process Recurring Billing Charges after the Cardmember or we have
notified you that the Cardmember has withdrawn consent for Recurring Billing Charges.
Before submitting any Recurring Billing Charge you must:
• obtain Authorization; and
• create a Charge Record including indicators that the Transaction is a Recurring Billing
Charge.
4.4.6.1 Introductory Offers
If you offer Cardmembers an option to make Recurring Billing Charges that include an
Introductory Offer, you must comply with all requirements set forth in this Section 4.4.6,
"Recurring Billing" policy in addition to the following requirements:
• Clearly and conspicuously disclose all material terms of the Introductory Offer to the
Cardmember, including a simple and expeditious cancellation process that allows the
Cardmember to cancel before submitting the first Recurring Billing Charge.
• Obtain the Cardmember's express consent to accept the terms and conditions of the
Introductory Offer.
• Send Cardmember a confirmation notification in writing upon enrollment in the
Introductory Offer.
• Send Cardmember a reminder notification in writing before submitting the first Recurring
Billing Charge, that allows the Cardmember a reasonable amount of time to cancel.
Recurring Billing Charges can
either be for a fixed or varying
amount.
• Fixed amount—the dollar
amount does not change
from one payment to the
next (e.g., monthly
magazine subscription).
• Varying amount—the dollar
amount changes from one
payment to the next (e.g.,
monthly utility bill).
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
26
Merchant Operating Guide - U.S.
Transaction Processing :: Other Charges
4.4.7 Processing Prepaid Cards
Prepaid Cards are available for a variety of uses: gifting, travel, incentive, etc. All American
Express Prepaid Cards show the American Express "Blue Box" logo either on the face or back of
the Prepaid Card. Prepaid Cards may or may not be embossed. Most Prepaid Cards can be
used for both in-store and online purchases.
Prepaid Cards are valid through the date on the Card. Swipe or insert the Card at the point of
sale just like any other Card. A Prepaid Card must be tendered for an amount that is no greater
than the funds available on the Card.
• Instruct Cardmembers that, before making a purchase, they may check their remaining
funds by:
calling the twenty-four (24) hour, toll-free number on the back of the Card,
checking online, or
using the mobile app offered by their Issuer (where available).
• Because Prepaid Cards are pre-funded, if you receive a Decline when seeking
Authorization, ask the customer to go online, use their mobile app, or call the toll-free
number on the back of the Card to confirm that the purchase price does not exceed the
available funds on the Prepaid Card.
• If the Prepaid Card does not have enough funds to cover the purchase price, process a
Split Tender Transaction or request an alternative form of payment.
• You must create a Charge Record for a Prepaid Card as you would any other Card.
• You may follow your policy on combining payment on Prepaid Cards with any Other
Payment Products or methods of payment. If the other payment method is an American
Express Card then you are required to follow all provisions of the Agreement.
• Check with your Merchant Services Provider to determine if your POS System is set up for
Split Tender functionality.
For information about processing Prepaid Cards, call the customer service number on the back
of the Card in question.
4.4.8 Processing Travelers/Gift Cheques
American Express Travelers Cheques, Cheques for Two, and Gift Cheques are easy to accept
provided that the cheque is an authentic American Express Travelers Cheque. See
Subsection 4.4.8.1, "Acceptance Procedures"
.
Businesses can accept these cheques for payment. You can deposit Travelers Cheques,
Cheques for Two and Gift Cheques directly into your Bank Account as they never expire.
Travelers Cheques
American Express Travelers Cheques are a widely used and recognized travel currency. If they
are ever lost or stolen, they can be replaced quickly and easily, almost anywhere in the world,
usually within twenty-four (24) hours.
Travelers Cheques come in various denominations and currencies.
Gift Cheques
American Express Gift Cheques function like Travelers Cheques, and are available in $10, $25,
$50, and $100 denominations only. Any Gift Cheque presented that is greater than $100 is
counterfeit. If you receive a Gift Cheque greater than $100, do the following:
• Contact Travelers Cheque/Gift Cheque Customer Service at 1-866-296-5198.
• Do not accept it.
• Write the word "VOID" across the front of the counterfeit Cheque.
For further information, see Chapter 9, "Fraud Prevention"
.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
27
Merchant Operating Guide - U.S.
Transaction Processing :: Other Charges
Travelers Cheques in circulation come in denominations ranging from $20 to $1000. Be
cautious when presented with an American Express Travelers Cheque in a denomination of
$500 or greater. These higher-denominated Travelers Cheques are rarely sold, and therefore
are more likely to be counterfeit. For information on how to perform a “smudge test,” which is
designed to test the authenticity of the Travelers Cheques, see Section 9.9, "Travelers Cheque
and Gift Cheque Security Features".
4.4.8.1 Acceptance Procedures
Accepting American Express Travelers and Gift Cheques is easy:
• Watch your customer countersign in the lower left corner of the cheque, and compare the
countersignature to the signature in the upper left corner for American Express Travelers
Cheques and Gift Cheques. For Cheques for Two, the customer's countersignature must
match either one of the two signatures on top.
• Validate Security Features – Validating these features will help reduce the acceptance of
counterfeit cheques. See Section 9.9, "Travelers Cheque and Gift Cheque Security
Features".
• Obtain authorization – American Express recommends obtaining an authorization to
reduce the chances of accepting fraudulent cheques. American Express offers a variety of
authorization tools. See authorization methods in the following table to determine your
course of action:
Table 4-2: Acceptance Procedures
4.4.9 Property Damage to Accommodations and Other Rentals
If a Cardmember expressly consents to use the Card to pay for Property Damage Fees and/or
smoking fees to a rented accommodation or equipment, you may accept the Card, provided
you have complied with following conditions for payment for such fees, and we classify the
rental as one of the following:
• Lodging accommodations
If Then
The signature and countersignature are a
reasonable match (they look alike, but may
not be identical)
Accept the cheque. There is no need to obtain
any identification.
You suspect that the countersignature may
be false, or you did not watch the customer
countersign
Ask the customer to turn the cheque over and
sign again across the left-hand side (in the
same manner one typically endorses a
cheque). Then take the cheque and fold up
the bottom right-hand corner so that you can
compare the original signature with the new
one.
The signatures are not the same, or if there is
a question regarding the validity of the cheque
Call the Travelers Cheque/Gift Cheque
Customer Service at 1-866-296-5198.
You suspect that the Travelers cheque being
presented is fraudulent
Use any of the following methods to verify
that the cheque you are accepting is
authentic:
• Perform a smudge test (see Chapter 9,
"Fraud Prevention" for details).
• Obtain online Authorization at
www.americanexpress.com/verifyamextc
.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
28
Merchant Operating Guide - U.S.
Transaction Processing :: Other Charges
• Trailer parks and campground rental
• Motor home rental
• Boat rental
• Bicycle rental
• Motorcycle rental
• Equipment rental
Conditions for Payment for such fees:
• The Card was used as the original payment method for the accommodations or rental.
• You must provide in writing, to the Cardmember, an itemized list and description of the
property and/or smoke damage which has occurred.
• Prior to submitting a Charge, you must obtain the Cardmember’s agreement in writing
1
to:
• Accept responsibility for the fees associated with the property and/or smoke damage.
• Select American Express as the payment method for the fees associated with the
property and/or smoke damage.
• Accept the total amount for which the Cardmember is responsible, and that the final
billed amount can be up to 15% more than the estimated amount. No amounts in
excess of 115% of the disclosed amount shall be charged to the Cardmember’s Card,
without the express prior written consent of the Cardmember.
• You must obtain Authorization for the amount of the fees associated with the property
and/or smoke damage each time a Charge is submitted.
• You must prepare a Charge Record separate from the Charge Record for the rental or
lodging stay. You must adhere to all requirements outlined in Chapter 4, "Transaction
Processing" for completion of the Charge Record. In addition, you must observe the
following:
• After the exact fee associated with the property and/or smoke damage has been
determined and the Charge is ready for Submission, you must provide the
Cardmember with an itemized summary; insert the amount on the Charge Record (in
no event in excess of the estimated amount plus 15% agreed to by the Cardmember).
• In addition to the other Chargeback rights contained in the Agreement, we may exercise
Chargeback rights with respect to any Charge for damages which is not submitted in
accordance with all the procedures contained within the Agreement, including the
provisions of this Section 4.4.9, "Property Damage to Accommodations and Other
Rentals".
• You must not include the following in an Authorization Request or in a Charge Submission:
• Losses due to theft of the equipment.
• Losses due to theft of property or equipment from within a rental accommodation.
• Loss of revenue due to the loss of use of the rental equipment or lodging
accommodations.
• You must submit the Charge to us within 90 calendar days of check-out or rental return
date.
4.4.10
Split Shipment
A split shipment Transaction occurs when a Cardmember makes a single purchase of multiple
individually priced goods and the goods are delivered to the Cardmember in multiple
shipments. Unit prices and items sold as a set must not be billed as separate Charges. You
may obtain a single Authorization and submit multiple Charge Records for the purpose of
completing a split shipment Transaction. The Authorization will be valid for up to seven (7) days
after the Authorization date. Section
5.3, "Authorization Time Limit"
.
1. The Cardmember’s consent must be provided in writing after the damages have
occurred and without any threat or duress.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
29
Merchant Operating Guide - U.S.
Transaction Processing :: Charge and Credit Records
To accept the Card for split shipment Transactions, you must:
• State your full cancellation and refund policies;
• Advise the Cardmember of the Authorization amount that will be requested;
• Disclose and obtain the Cardmember's consent that the items from the purchase will
be delivered separately and billed as separate Charges;
• Provide the estimated delivery date(s);
• Submit a Charge Record only after each item has shipped.
4.5 Charge and Credit Records
4.5.1 Charge Records
You must create a Charge Record for every Charge. For each Charge submitted electronically,
you must create an electronically reproducible Charge Record, that complies with the Technical
Specifications. See Section 2.4, "Compliance with the Technical Specifications"
.
The Charge Record (and a copy of the customer's receipt) must disclose the Authorization
Approval code and your return and/or cancellation policies.
If the Cardmember wants to use different Cards for payment of a purchase, you may create a
separate Charge Record for each Card used. However, if the Cardmember is using a single Card
for payment of a purchase, you must not divide the purchase into more than one Charge, nor
create more than one Charge Record except in the case of hotel charges, or Split Shipment
Transactions. See Subsection 4.4.10, "Split Shipment"
.
For all Charge Records, you must:
1. Submit the Charge to your Merchant Services Provider for payment.
2. Retain the original or electronically stored Charge Record (as applicable) and all
documents evidencing the Charge, or reproducible records thereof, for twenty-four (24)
months. See Chapter 8, "Protecting Cardmember Information"
for additional information.
3. Provide a copy of the Charge Record to the Cardmember.
You may be able to create more than one Charge Record if the purchase qualifies for a Delayed
Delivery Charge. See Subsection 4.4.3, "Delayed Delivery"
.
For Transit Contactless Transactions, a Charge Record is not required for every Charge. Please
refer to Section 12.14.4, "Transit Charge Information"
for more information.
The retention time frame for the original or electronically
stored Charge Record is twenty-four (24) months from the
date you submitted the corresponding Charge to us.
Pursuant to Applicable Law, truncate the Card Number and
do not print the Card's Expiration Date on the copies of
Charge Records delivered to Cardmembers. Truncated Card
Number digits must be masked with replacement characters
such as "x," "*," or "#," and not blank spaces or numbers. Here
is an example of a Charge Record with a truncated Card
Number.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
30
Merchant Operating Guide - U.S.
Transaction Processing :: Charge and Credit Records
4.5.2 Credit Records
You must create a Credit Record for any Credit that you issue. For each Credit submitted
electronically, you must create an electronically reproducible Credit Record, and the Credit
must comply with the Technical Specifications. See Section 2.4, "Compliance with the
Technical Specifications".
If you submit Credits on paper, you must create a Credit Record containing all of the following
required data:
• full Card Number and Expiration Date (pursuant to Applicable Law), and if available,
Cardmember name,
• the date the Credit was issued,
• the amount of the Credit,
• your Establishment name and address and, if applicable, store number, and
• your Merchant Number.
For all Credit Records, you must:
1. Submit the Credit through your Merchant Services Provider.
2. Retain the original or Credit Records (as applicable) and all documents evidencing the
Transaction, or reproducible records thereof, for twenty-four (24) months from the date
you submitted the corresponding Credit.
3. Provide a copy of the Credit Record to the Cardmember.
The retention time frame for the original or electronically stored Credit Records is twenty-four
(24) months from the date you submitted the corresponding Credit to your Merchant Services
Provider.
Pursuant to Applicable Law, truncate the Card Number and do not print the Card's Expiration
Date on copies of Credit Records delivered to the Cardmember.
Contact your Merchant Services Provider for additional information and guidance on
submission of Credit Records.
4.5.3 Substitute Charge Records
In some cases, you may provide a Substitute Charge Record as supporting documentation in
place of the original Charge Record. You must also provide any additional information
requested in the Inquiry. Substitute Charge Records may be used in response to the following
Inquiry reasons:
• Does Not Recognize/Remember/No Knowledge
• Fraudulent Transactions
• Cardmember Requests Support
See Section 11.6, "Inquiry Reasons"
for additional information regarding Inquiry reasons.
The Substitute Charge Record must include the following:
• Card Number
• Cardmember name
• Merchant name
• Merchant location
• Transaction date/date goods or services were shipped or provided
• Transaction amount
• Authorization Approval
• description of goods/services
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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Merchant Operating Guide - U.S.
Transaction Processing :: Charge and Credit Records
Additionally, the following optional information should be included, if available, on Substitute
Charge Record:
• date goods/services were ordered
• website address
• your customer service’s telephone number/email address
• "ship to" name and address
• Automated Address Verification response code
• order confirmation number
• electronically captured Cardmember signature
Contact your Merchant Services Provider for additional guidance or to obtain information on
Substitute Charge Records.
4.5.4 Processing a Credit
A Credit may occur when a Merchant processes a refund for purchases or payments made on
the Card.
Follow these steps to issue a Credit:
1. If you choose to support Authorization for Credit, obtain an Authorization.
2. Create a Credit Record.
3. Compare the last four digits on the Charge Record against the Card presented (when
applicable).
4. Have the Cardmember sign the Credit Record (optional).
5. Provide a copy of the Credit Record to the Cardmember.
You must submit Credits to your Merchant Services Provider within seven (7) days of
determining that a Credit is due and create a Credit Record that complies with your Merchant
Services Provider's requirements. You must not issue a Credit when there is no corresponding
Charge, nor issue a Credit in exchange for cash or other consideration from a Cardmember.
You must submit all Credits under the Merchant Number of the Establishment where the
Charge originated.
A Credit must be issued in the currency in which the original Charge was submitted to your
Merchant Services Provider.
You must issue Credits to the Card used to make the original purchase; however, if the Credit is
for the return of a gift by someone other than the Cardmember who made the original
purchase, apply your usual refund policy.
If the Cardmember indicates that the Card on which the purchase was originally made is no
longer active or available, do the following:
• For all Cards except Prepaid Cards, advise the Cardmember that you must issue the Credit
to that Card. If the Cardmember has questions, advise him or her to call the customer
service number on the back of the Card in question.
• If the inactive or unavailable Card is a Prepaid Card, apply your usual refund policy for
returns.
If you choose to support Authorization on Credit and receive a decline Authorization response,
apply your established store policy.
Contact your Merchant Services Provider for additional information and guidance on
processing Credits.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
32
Merchant Operating Guide - U.S.
Transaction Processing :: Use of Third Parties
4.6 Use of Third Parties
As a Merchant, you make decisions and choices on behalf of your business each and every day.
Some Merchants choose to deal directly with us for all aspects of the Transaction process;
others enlist the assistance of various third parties to provide them with services. These third
parties are your Covered Parties and may include:
• Merchant Services Provider/Service Providers/processors,
• Terminal Providers,
• Vendors, and
• Other agents contracted to operate on your behalf.
You may retain, at your expense, such third parties; however, you remain financially and
otherwise liable for all obligations (including confidentiality obligations and compliance with
the Technical Specifications), services, and functions they perform under the Agreement for
you, such as the technical requirements of authorizing and submitting Transactions to us, as if
you performed such obligations, services, and functions.
You are responsible and liable for all problems and expenses caused by your Merchant Services
Provider and/or third parties, including any Settlement payments misdirected to other parties
because of the misprogramming of your Point of Sale (POS) System by your Merchant Services
Provider and/or third parties.
5
Authorizations 5
5.1 Transaction Process
5.2 The Purpose of Authorization
5.3 Authorization Time Limit
5.4 Estimated Authorization
5.5 Partial Authorization
5.6 Floor Limit
5.7 Authorization Process
5.8 Possible Authorization Responses
5.9 Obtaining an Authorization
5.10 Card Identification (CID) Number
5.11 Authorization Reversal
5.12 Pre-Authorization
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
34
Merchant Operating Guide - U.S.
Authorizations :: Transaction Process
5.1 Transaction Process
The Authorization process begins when you provide an Authorization request to your Merchant
Services Provider. After requesting Authorization, you receive an Authorization response,
which you use, in part, to determine whether to proceed with the Charge or Credit.
If you choose to support Authorization for Credit, you shall comply with the Authorization
requirements as applicable.
* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.
5.2 The Purpose of Authorization
The purpose of an Authorization is to provide you with information that will help you determine
whether or not to proceed with a Charge or Credit.
For every Charge, you are required to obtain an Authorization Approval except for Charges
under a Floor Limit (see Section 5.6, "
Floor Limit"). For every Credit, we recommend that you
obtain an Authorization Approval for the full amount of the refund in accordance with
Section 4.5.4, "Processing a Credit"
.
The Authorization Approval must be for the full amount of the Charge except for Merchants
and/or Transaction types that we classify in the industries listed in Section 5.4, "
Estimated
Authorization".
An Authorization Approval does not guarantee that (i) the person making the Charge is the
Cardmember, (ii) the Charge is in fact valid or bona fide, (iii) you will be paid for the Charge, (iv)
you will not be subject to a Chargeback, or (v) the Charge you submit will not be rejected.
5.3 Authorization Time Limit
Authorization Approvals for Charges are valid for seven (7) days after the Authorization date.
You must obtain a new Approval if you submit the Charge to your Merchant Services Provider
more than seven (7) days after the original Authorization date.
Authorization Approvals for Credit are valid for seven (7) days. After seven (7) days, we
recommend that you obtain a new Approval for Credit Authorization.
DATA SECURITY
FRAUD DETECTION
TRANSACTION PROCESS
*
Cardmember
utilizes Card
for payment
Merchant
obtains
Authorization
Merchant
submits
Charge for
Settlement
Merchant
Services
Provider
settles with
Merchant
Cardmember
receives
billing
statement
A dispute
case is
opened
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
35
Merchant Operating Guide - U.S.
Authorizations :: Estimated Authorization
For Charges of goods or services that are shipped or provided more than seven (7) days after
an order is placed, you must obtain an Approval for the Charge at the time the order is placed
and again at the time you ship or provide the goods or services to the Cardmember.
The new Approval must be included in the Charge Record. If either of the Authorization
requests is Declined, do not provide the goods or services or submit the Charge. If you do, you
will be subject to a Chargeback.
For Estimated Authorization time frames see Section 5.4, "
Estimated Authorization".
5.4 Estimated Authorization
If you are classified or it is determined that you operate in one of the following industries, then
the following Estimated Authorization procedures apply where the final Charge amount is not
known at the time of Authorization.
You may only obtain an Estimated Authorization in the industries listed below. Do not
overestimate the Authorization amount. You must obtain the Cardmember’s consent to such
estimated amount prior to requesting the Authorization.
You must submit the corresponding Charge no later than the Estimated Authorization
Timeframe. For any amount of the Charge that exceeds the amount for which you obtained an
Authorization you must obtain the Cardmember’s consent.
If the final amount of the Charge is:
• no greater than the amount for which you obtained Authorization plus the applicable
Estimate Authorization percentage listed below of that amount, no further Authorization is
necessary; or
• greater than the amount for which you obtained Authorization by more than the applicable
Estimated Authorization percentage listed below of that amount, you must obtain a new
Authorization. If you fail to obtain such Authorization, or your request for such
Authorization is declined, American Express will have Chargeback rights for the amount in
excess of the original Authorization amount plus the applicable Estimated Authorization
percentage of that amount. For the avoidance of doubt, American Express will have
Chargeback rights for the final amount of the Charge for reasons other than the failure to
obtain an approved Authorization.
Estimated Authorization percentages listed below do not apply to Partially Approved
Authorizations.
An Estimated Authorization is valid for the applicable Estimated Authorization time frame
listed below. You must obtain a new Approval if you do not submit the Charge to us within the
Estimated Authorization time frame.
Table 5-1: Estimated Charge Amount
Industry MCC
Estimated
Charge Variance
+/-
Authorization
Validity Period
Eating Places,
Restaurants
5812
30%
2
7 days
Drinking Places 5813
30%
2
7 days
Grocery Stores (Card
Not Present)
5411
15%
1
7 days
We recommend that you
perform an additional
Authorization as soon as the
Charge amount exceeds the
original Authorization by the
Estimated Authorization
percentage in the table in this
section as follows:
• For Authorizations obtained
intermittently – at least
once per day.
• For Authorizations for
estimated amounts at the
point the amount of costs
incurred exceeds the
Authorization for estimated
amounts by more than
Estimated Amount
percentage.
For example, in the lodging
industry:
If the Authorization was for
$1,000, and the total of
purchases was no more than
$1,150, no further Authorization
is necessary. However, if the
total purchases were $1,200,
and you did not obtain additional
Authorization, then we have
Chargeback rights up to $50.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
36
Merchant Operating Guide - U.S.
Authorizations :: Partial Authorization
1
The 15% Estimated Charge variance for Retail and Grocery only applies to Card Not Present Charges.
2
The Estimated Charge variance at Restaurant, Fast Food, and Drinking Places for debit and prepaid
Charges is 20%.
5.5 Partial Authorization
Partial Authorization is an optional functionality of Prepaid and Debit Cards that allows
Merchant to obtain an Authorization for less than the requested purchase amount. The Issuer
can approve the Authorization for a partial amount when the Cardmember does not have
sufficient funds to cover the full purchase amount requested. The Cardmember, then, has the
option to pay for the outstanding amount of the purchase by other means.
Partial Authorization is not supported for the following Transaction types:
• Cross-border Transactions (Transactions in which the Merchant's currency is different
than the Issuer’s currency)
• Recurring Billing
5.6 Floor Limit
American Express maintains a zero-dollar Floor Limit on all Charges regardless of the amount.
If any one Charge, or series of Charges, made on the same day by any one Cardmember at the
Establishment, is equal to or greater than this Floor Limit, the Establishment must request
Authorization.
Retail Stores (Card
Not Present)
All MCCs
15%
1
7 days
Taxicabs &
Limousines
4121 20% 7 days
Car Rental 7512 15% Duration of rental
Lodging 7011 15% Duration of stay
Motor Home & RV
Rentals
7519 15% 7 days
Truck Rental 7513 15% 7 days
Fast Food
Restaurants
5814
30%
2
7 days
Beauty & Barber
Shops
7230 20% 7 days
Health & Beauty Spas 7298 20% 7 days
Industry MCC
Estimated
Charge Variance
+/-
Authorization
Validity Period
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37
Merchant Operating Guide - U.S.
Authorizations :: Authorization Process
5.7 Authorization Process
5.8 Possible Authorization Responses
Responses to your requests for Authorization are generated by Issuers and transmitted to you.
The following are among the most commonly generated responses to your request for
Authorization. The exact wording may vary so check with your Merchant Services Provider to
determine what Authorization responses will display on your equipment.
The
Cardmember
provides you
with the Card
or the Card
Information.
The POS
System
captures the
Card
Information and
transfers it to
the American
Express
Network.
The Network
sends the
Approval
request to the
Issuer.
The Issuer
Approves or
declines the
request.
Upon receiving
the decision of
the Approval or
decline of the
request, you
will be able to
complete or
deny the
Transaction
and inform the
Cardmember.
The POS
System displays
the Approval or
decline of the
request.
The American
Express
Network relays
the information
back to the
POS System.
The Issuer
communicates
the Approval
or decline back
to the
American
Express
Network.
Cardmember
Transaction
Network Issuer
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Merchant Operating Guide - U.S.
Authorizations :: Obtaining an Authorization
Table 5-2: Authorization Response
5.9 Obtaining an Authorization
You must ensure that all Authorization requests comply with the Technical Specifications (see
Section 2.4, "
Compliance with the Technical Specifications"). If the Authorization request does
not comply with the Technical Specifications, the Authorization was Declined, or for which no
Approval code was obtained, American Express may reject the Submission or American
Express may exercise a Chargeback. Contact your Merchant Services Provider for information
about your obligations to comply with the Technical Specifications.
If the Card is unreadable and you have to key-enter the Charge to obtain an Authorization then
you must follow the requirements for key-entered Charges. See Subsection 4.2.4, "Key-Entered
Charges" for additional information.
If you use an electronic POS System to obtain Authorization, the Approval must be printed
automatically on the Charge Record.
Occasionally, obtaining an electronic Authorization may not be possible (e.g., due to POS
System problems, System Outages, or other disruptions of an electronic Charge). In these
instances, please work with your Merchant Services Provider.
Authorization
Response
What It Means
Approved The Charge or Credit is approved.
Partially Approved
(for use with Prepaid
and Debit Cards only)
The Charge is approved. The Approval is for an amount less than the
value originally requested. The Charge must only be submitted for
the approved amount. Collect the remaining funds due from the
Cardmember via another form of payment.
For Split Tender, you may follow your policy on combining payment
on Prepaid and Debit Cards with any Other Payment Products or
methods of payment.
Declined or Card Not
Accepted
The Charge is not approved. Do not provide the goods or services or
submit the Charge.
Inform the Cardmember promptly that the Card has been Declined.
If the Cardmember has questions or concerns, advise the
Cardmember to call the customer service telephone number on the
back of the Card. Never discuss the reason for the Decline.
If you submit the Charge after receiving a Decline, American Express
may reject the Charge or you will be subject to a Chargeback.
The Credit is not approved. Inform the Cardmember promptly that
the Credit has been Declined. You may apply your established store
policy.
Pick up You may receive an Issuer point of sale response indicating that you
must pick up the Card. Follow your internal policies when you receive
this response. Never put yourself or your employees in unsafe
situations. Contact your Merchant Services Provider for further
information regarding a Pick Up Card response.
Failure to comply with the
American Express Technical
Specifications for Authorization
may impact your ability to
successfully process
Transactions. For example, we
may not be able to issue an
Authorization response or
process the Charge at
Submission (see Section 6.5,
"Submission Requirements –
Electronic").
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
39
Merchant Operating Guide - U.S.
Authorizations :: Card Identification (CID) Number
5.10 Card Identification (CID) Number
The Card Identification (CID) Number provides an extra level of Cardmember validation and is
part of the Authorization process. The CID Number is printed on the Card.
If, during the Authorization, a response is received that indicates the CID Number given by the
person attempting the Charge does not match the CID Number that is printed on the Card,
follow your internal policies.
Note: CID Numbers must not be stored for any purpose. They are available for real time
Charges only. See Chapter 8, "
Protecting Cardmember Information".
See Chapter 9, "
Fraud Prevention" for more information on CID Numbers and CID Verification.
5.11 Authorization Reversal
It is a good practice to reverse an Authorization for an Approved Charge if you do not intend to
submit a Charge to your Merchant Services Provider within the Authorization time limits. See
Section 5.12, "
Pre-Authorization". You may reverse an Authorization for a corresponding
Charge by:
• initiating an Authorization reversal message, or
• Contacting your Merchant Services Provider for instructions on how to reverse an
Authorization.
After a Charge Record has been submitted, an Authorization cannot be canceled or changed.
For example, if you make an error in a Charge but have already submitted the Charge Record,
you cannot systematically request a change in the Charge. You must instead, follow the
procedures for Processing a Credit, as defined in Section 4.5.4, "Processing a Credit"
.
5.12 Pre-Authorization
A pre-Authorization is an Authorization request that you submit in advance of providing the
goods or services, allowing you then to submit the Approved Charge (e.g., fuel pump CATs).
Card Identification (CID)
Number
CID is a four-digit number
printed on the face of the Card.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
41
Merchant Operating Guide - U.S.
Submissions :: Introduction
6.1 Introduction
Merchants are familiar with commitments that keep their business running smoothly. One
such commitment is to submit Transactions conducted at your Establishments to your
Merchant Services Provider for payment.
Since payment cannot occur until the Transactions are submitted, you are encouraged to
submit Transactions daily even though you have up to seven (7) days to do so.
See Section 4.2, "In-Person Charges"
and Section 4.5.4, "Processing a Credit" for additional
information.
6.2 Transaction Process
Collect Transactions during the business day and submit them to us, through your Merchant
Services Provider, usually at the end of a day. If you have any Submission problems, contact
your Merchant Services Provider.
* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.
6.3 Purpose of Submission
After we receive the Submission, we process it and settle with your Merchant Services Provider.
Your Merchant Services Provider will then settle directly with you in accordance with the
payment plan, speed of payment, and payment method, you have arranged with them.
Transactions will be deemed accepted on a given business day if processed by us before the
close of business.
Please contact your Merchant Services Provider for additional information on submitting
Transactions, processing cutoff times, and payment procedures.
DATA SECURITY
FRAUD DETECTION
TRANSACTION PROCESS
*
Cardmember
utilizes Card
for payment
Merchant
obtains
Authorization
Merchant
submits
Charge for
Settlement
Merchant
Services
Provider
settles with
Merchant
Cardmember
receives
billing
statement
A dispute
case is
opened
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
42
Merchant Operating Guide - U.S.
Submissions :: Submission Process
6.4 Submission Process
After you collect the Transactions during your business day, we encourage you to submit them
to your Merchant Services Provider daily.
Following the instructions displayed in your POS System, you can submit your Transactions to
be processed and Settled.
Payments cannot occur until the Transactions are Submitted, received, and processed through
your Merchant Services Provider.
6.5 Submission Requirements – Electronic
You must submit Transactions electronically in accordance with your Merchant Services
Provider’s instructions.
When you transmit Charge Data and Transmission Data electronically, you must still complete
and retain Charge Records and Credit Records.
A Submission or Batch must comply with the American Express Merchant Operating Guide,
including the Technical Specifications (see Section 2.4, "Compliance with the Technical
Specifications"). Failure to follow these requirements could result in a rejection of your
Submission or Batch or delay in your payment (or both). If a Submission or Batch rejects, you
may not be paid until the Submission or Batch is corrected and resubmitted. You must work
with your Merchant Services Provider to correct the error, then resubmit. For Submissions
which fail to comply with the Technical Specifications, American Express has the right to
Chargeback.
You must submit Charges and Credits only in U.S. Dollars.
6.5.1 Charge Submissions
You must submit all Charges to your Merchant Services Provider within seven (7) days of the
date they are incurred. Charges are deemed "incurred" on the date the Cardmember indicates
to you that they will pay for the goods or services purchased with the Card. Charges must not
be submitted to your Merchant Services Provider until after the goods are shipped, provided, or
the services are rendered. You must submit all Charges under the Establishment where the
Charge originated.
For Aggregated Charges, the Charge must be submitted within seven (7) days of the date of the
last purchase (and/or refund as applicable) that comprises the Aggregated Charge. See
Section 4.4.2, "Aggregated – Internet"
for additional information.
Merchant Merchant Services
Provider
Acquirer
For additional information about
retaining information, see
Section 4.5, "Charge and Credit
Records" and Section 8.4,
"Standards for Protection of
Encryption Keys, Cardholder
Data, and Sensitive
Authentication Data".
Besides impacting your
Transaction processing, failure
to comply with the Technical
Specifications may increase your
Disputed Charges. For instance,
for a Card Not Present Charge, if
you do not provide a customer
service telephone number or
web address, Cardmembers who
do not recognize Charges, may
initiate “no knowledge” Inquiries
rather than contact you directly
to identify the Charge.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
43
Merchant Operating Guide - U.S.
Submissions :: Submission Requirements – Paper
Delayed Delivery Charges and Advance Payment Charges may be submitted before the goods
are shipped, provided, or the services are rendered. See Section 4.4.3, "Delayed Delivery"
and
Section 4.4.1, "Advance Payment"
for additional information.
6.5.2 Credit Submissions
You must submit all Credits to your Merchant Services Provider within seven (7) days of
determining that a Credit is due. You must submit each Credit under the Establishment where
the Credit originated. Please contact your Merchant Services Provider for additional
information regarding Credit submission requirements.
6.6 Submission Requirements – Paper
If, under extraordinary circumstances, you need to submit Transactions on paper, you must do
so in accordance with instructions provided by your Merchant Services Provider.
6.7 How to Submit
In many cases, your POS System automatically processes the Transactions in Batches at the
end of the day. On busy days, your Transaction volume may be greater than your POS System's
storage capability.
Consult information provided by your Merchant Services Provider to determine POS storage
capacity and whether it's necessary to submit multiple Batches (e.g., submit a Batch at mid-
day and again in the evening).
Contact your Merchant Services Provider for additional information regarding submission
requirements.
Many POS Systems are
equipped with a "batch out" key
or similar functionality. Contact
your Merchant Services
Provider for information on the
best way to submit a batch.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
45
Merchant Operating Guide - U.S.
Settlement :: Transaction Process
7.1 Transaction Process
After we receive a Submission file, we begin the process of settling. Settlement of payment
from American Express will be made directly to your Merchant Services Provider.
* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.
7.2 Settlement Amount
All settlement activity to you is the responsibility of your Merchant Services Provider and any
questions or concerns should be directed to them for resolution.
7.3 Payment Errors or Omissions
Immediately notify your Merchant Services Provider of any error or omission in respect to your
transactions or other fees or payments for Charges, Credits, or Chargebacks.
7.4 Collecting from Cardmembers
You must not bill or collect from any Cardmember for any purchase or payment made on the
Card unless:
• Chargeback was exercised for such Charge,
• You have fully paid your Merchant Services Provider for such Charge, and
• You otherwise have the right to do so.
DATA SECURITY
FRAUD DETECTION
TRANSACTION PROCESS
*
Cardmember
utilizes Card
for payment
Merchant
obtains
Authorization
Merchant
submits
Charge for
Settlement
Merchant
Services
Provider
settles with
Merchant
Cardmember
receives
billing
statement
A dispute
case is
opened
8
Protecting Cardmember
Information 8
8.1 Data Security Requirements
8.2 Definitions
8.3 Targeted Analysis Program (TAP)
8.4 Standards for Protection of Encryption Keys, Cardholder Data, and Sensitive
Authentication Data
8.5 Data Incident Management Obligations
8.6 Reserved
8.7 Periodic Validation of Merchant Systems
8.8 Reserved
8.9 Disclaimer
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
47
Merchant Operating Guide - U.S.
Protecting Cardmember Information :: Data Security Requirements
8.1 Data Security Requirements
As a leader in consumer protection, American Express has a long-standing commitment to
protect Cardholder Data and Sensitive Authentication Data, ensuring that it is kept secure.
Compromised data negatively impacts consumers, Merchants, and Issuers. Even one incident
can severely damage a company's reputation and impair its ability to effectively conduct
business. Addressing this threat by implementing security operating policies can help improve
customer trust, increase profitability, and enhance a company's reputation.
American Express knows that you share American Express' concern and requires, as part of
your responsibilities, that you comply with the data security requirements in the Agreement
with your Merchant Services Provider and these Data Security Requirements.
These requirements apply to all your equipment, systems, and networks (and their
components) on which encryption keys, Cardholder Data, or Sensitive Authentication Data (or
a combination of each) are stored, processed, or transmitted.
8.2 Definitions
For the purposes of this Chapter 8, "Protecting Cardmember Information", the following
definitions apply:
American Express Card, or Card – Any card, account access device, or payment device or
service bearing American Express' or an affiliate's name, logo, trademark, service mark, trade
name, or other proprietary design or designation and issued by an issuer or a card account
number.
Approved Point-to-Point Encryption (P2PE) Solution – A solution that is included on PCI SSC
list of validated solutions or validated by a PCI SSC Qualified Security Assessor P2PE
Company.
Approved Scanning Vendors (ASVs) – An Entity that has been qualified by the Payment Card
Industry Security Standards Council, LLC to validate adherence to certain PCI DSS
requirements by performing vulnerability scans of internet facing environments. See
Section 8.7, "
Periodic Validation of Merchant Systems".
Attestation of Compliance (AOC) – A declaration of the status of your compliance with the
PCI DSS, in the form provided by the Payment Card Industry Security Standards Council, LLC.
Attestation of Scan Compliance (AOSC) – A declaration of the status of your compliance with
the PCI DSS based on a network scan, in the form provided by the Payment Card Industry
Security Standards Council, LLC.
Card Number – The unique identifying number that the Issuer assigns to the Card when it is
issued.
Cardholder Data – Has the meaning given in the then-current Glossary of Terms for the
PCI DSS.
Cardholder Data Environment (CDE) – The people, processes, and technology that store,
process, or transmit cardholder data or sensitive authentication data.
Cardmember – An individual or entity (i) that has entered into an agreement establishing a
Card account with an issuer or (ii) whose name appears on the Card.
Cardmember Information – Information about American Express Cardmembers and Card
Transactions, including names, addresses, card account numbers, and card identification
numbers (CIDs).
Charge – A payment or purchase made on a Card.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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Merchant Operating Guide - U.S.
Protecting Cardmember Information :: Definitions
Chip – An integrated microchip embedded on a Card containing Cardmember and account
information.
Chip Card – A Card that contains a Chip and could require a PIN as a means of verifying the
identity of the Cardmember or account information contained in the Chip, or both (sometimes
called a “smart card”, an “EMV Card”, or an “ICC” or “integrated circuit card” in our materials).
Chip-Enabled Device – A point-of-sale device having a valid and current EMVCo
(www.emvco.com
) approval/certification and be capable of processing AEIPS compliant Chip
Card Transactions.
Credit – The amount of the Charge that you refund to Cardmembers for purchases or
payments made on the Card.
Compromised Card Number – An American Express Card account number related to a Data
Incident.
Covered Parties – Any or all of your employees, agents, representatives, subcontractors,
processors, Service Providers, providers of your point-of-sale (POS) equipment or systems, or
payment processing solutions, Entities associated to your American Express merchant
account, and any other party to whom you may provide Cardholder Data or Sensitive
Authentication Data (or both) access in accordance with the Agreement.
Data Incident – An incident involving the compromise or suspected compromise of American
Express encryption keys, or at least one American Express Card account number, in which
there is:
• unauthorized access or use of Encryption Keys, Cardholder Data, or Sensitive
Authentication Data (or a combination of each) that are stored, processed, or transmitted
on your equipment, systems, and/or networks (or the components thereof) of yours or the
use of which you mandate or provide, or make available;
• use of such Encryption Keys, Cardholder Data, or Sensitive Authentication Data (or a
combination of each) other than in accordance with the Agreement; and/or
• suspected or confirmed loss, theft, or misappropriation by any means of any media,
materials, records, or information containing such Encryption Keys, Cardholder Data, or
Sensitive Authentication Data (a combination of each).
Data Incident Event Window – The window of intrusion (or similarly determined period of
time) set forth in the final forensic report (e.g., PCI Forensic Investigator (PFI) report), or if
unknown, up to 365 days prior to the last Notification Date of potentially Compromised Card
Numbers involved in a Data Compromise reported to us.
Data Security Requirements (DSR) – The American Express data security policy, as
described in Chapter 8, "
Protecting Cardmember Information" of the Merchant Operating
Guide.
EMV Specifications – The specifications issued by EMVCo, LLC, which are available at
www.emvco.com
.
EMV Transaction – An integrated circuit card (sometimes called an “IC Card,” “chip card,”
“smart card,” “EMV card,” or “ICC”) Transaction conducted on an IC card capable point of sale
(POS) terminal with a valid and current EMV type approval. EMV type approvals are available at
www.emvco.com
.
Encryption Key – All keys used in the processing, generation, loading and/or protection of
Account Data. This includes, but is not limited to, the following:
• Key Encrypting Keys: Zone Master Keys (ZMKs) and Zone PIN Keys (ZPKs)
• Master Keys used in secure cryptographic devices: Local Master Keys (LMKs)
• Card Security Code Keys (CSCKs)
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
49
Merchant Operating Guide - U.S.
Protecting Cardmember Information :: Definitions
• PIN Keys: Base Derivation Keys (BDKs), PIN Encryption Keys (PEKs), and ZPKs
Forensic Incident Final Report Template – Means the template available from the PCI Security
Standards Council, which is available at www.pcisecuritystandards.org
.
Issuer – Any Entity (including American Express and its Affiliates) licensed by American
Express or an American Express Affiliate to issue Cards and to engage in the Card issuing
business.
Level 1 Merchant – 2.5 million American Express Card Transactions or more per year; or any
Merchant that American Express otherwise deems a Level 1 Merchant.
Level 2 Merchant – 50,000 to 2.5 million American Express Card Transactions per year.
Level 3 Merchant – 10,000 to 50,000 American Express Card Transactions per year.
Level 4 Merchant – Less than 10,000 American Express Card Transactions per year.
Merchant – The Merchant and all of its affiliates that accept American Express Cards under a
Merchant processing agreement or sponsored Merchant agreement, the American Express
Merchant Operating Guide, and any accompanying schedules and exhibits, collectively,
between Merchant and its Merchant Services Provider.
Merchant Level – The designation assigned to Merchants related to their PCI DSS compliance
validation obligations, as described in Section 8.7, "
Periodic Validation of Merchant Systems".
Notification Date – The date that American Express provides Issuers with final notification of a
Data Incident. Such date is contingent upon American Express' receipt of the final forensic
report or internal analysis and shall be determined in American Express' sole discretion.
Payment Application – Has the meaning given to it for the Secure Software Framework,
including the Secure Software Standard and Secure Software Life Cycle Standard, which are
available at https://www.pcisecuritystandards.org/document_library/
?document=sec_sware_faag.
Payment Card Industry Data Security Standard (PCI DSS) – The Payment Card Industry
Data Security Standard, which is available at www.pcisecuritystandards.org
.
Payment Card Industry Security Standards Council (PCI SSC) Requirements – The set of
standards and requirements related to securing and protecting payment card data, including
the PCI DSS and PA DSS, available at www.pcisecuritystandards.org
.
PCI-Approved – A PIN Entry Device or a Payment Application (or both) that appears at the
time of deployment on the list of approved companies and providers maintained by the PCI
Security Standards Council, LLC, which is available at www.pcisecuritystandards.org
.
PCI DSS – Payment Card Industry Data Security Standard, which is available at
www.pcisecuritystandards.org
PCI Forensic Investigator (PFI) – An Entity that has been approved by the Payment Card
Industry Security Standards Council, LLC to perform forensic investigations of a breach or
compromise of payment Card Data.
PCI PIN Security Requirements – The Payment Card Industry PIN Security Requirements,
which are available at www.pcisecuritystandards.org
.
PIN Entry Device – Has the meaning given to it in the then-current Glossary of Terms for the
Payment Card Industry PIN Transaction Security Requirements, Point of Interaction Modular
Security Requirements, which is available at www.pcisecuritystandards.org
.
Point-to-Point Encryption (P2PE) – A solution that cryptographically protects account data
from the point where a Merchant accepts the payment card to the secure point of decryption.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
50
Merchant Operating Guide - U.S.
Protecting Cardmember Information :: Targeted Analysis Program (TAP)
Point of Sale (POS) System – An information processing system or equipment, including a
terminal, personal computer, electronic cash register, contactless reader, or payment engine or
process, used by a Merchant, to obtain Authorizations or to collect Transaction data, or both.
Primary Account Number (PAN) – The meaning given to it in the then current Glossary of
Terms for the PCI DSS.
Qualified Security Assessors (QSAs) – Entities that have been qualified by the Payment Card
Industry Security Standards Council, LLC to validate adherence to the PCI DSS. See
Section 8.7, "
Periodic Validation of Merchant Systems".
Self-Assessment Questionnaire (SAQ) – A self-assessment tool created by the Payment Card
Industry Security Standards Council, LLC, intended to evaluate and attest to compliance with
the PCI DSS.
Sensitive Authentication Data – Has the meaning given in the then-current Glossary of Terms
for the PCI DSS.
Targeted Analysis Program (TAP) – A program that provides early identification of a potential
Cardholder data compromise in your Cardholder Data Environment (CDE). See Section 8.3,
"Targeted Analysis Program (TAP)".
Token – The cryptographic token that replaces the PAN, based on a given index for an
unpredictable value.
Transaction – A Charge or a Credit completed by means of a Card.
Validation Documentation – The AOC rendered in connection with an Annual Onsite Security
Assessment or SAQ, the AOSC and executive summaries of findings rendered in connection
with Quarterly Network Scans, or the annual STEP Attestation.
8.3 Targeted Analysis Program (TAP)
Cardholder Data compromises may be caused by data security gaps in your Cardholder Data
Environment (CDE). Examples of Cardholder Data compromise include, but are not limited to:
• Common Point of Purchase (CPP): American Express Cardmembers report fraudulent
Transactions on their Card accounts and are identified and determined to have originated
from making purchases at your Establishments.
• Card Data found: American Express Card and Cardholder Data found on the world wide
web linked to Transactions at your Establishments.
• Malware suspected: American Express suspects that your business is using software
infected with or vulnerable to malicious code.
TAP is designed to identify potential Cardholder Data compromises.
You must, and you must cause your Covered Parties to, comply with the following requirements
upon notification from American Express or your Merchant Services Provider, of a potential
Cardholder Data compromise.
• You must promptly review your CDE for data security gaps and remediate any findings.
• You must cause your third-party vendor(s) to conduct a thorough investigation of your
CDE if outsourced.
• You must provide a summary of action taken or planned after your review, evaluation, and/
or remediation efforts upon notification from American Express or your Merchant Services
Provider.
• You must provide updated PCI DSS validation documents in accordance with Section 8.7,
"Periodic Validation of Merchant Systems".
• As applicable, you must engage a qualified PFI to examine your CDE if you or your Covered
Party:
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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Merchant Operating Guide - U.S.
Protecting Cardmember Information :: Standards for Protection of Encryption Keys,
Cardholder Data, and Sensitive Authentication Data
Cannot resolve the Cardholder Data compromise within a reasonable period of time,
as determined by American Express, or
Confirm that a Data Incident has occurred and comply with the requirements set forth
in Section 8.5, "
Data Incident Management Obligations".
If you cannot meet these obligations, your Merchant Services Provider may have the right to
terminate the Agreement in accordance with its terms as well as impose non-compliance fees
on you.
8.4 Standards for Protection of Encryption Keys, Cardholder Data, and
Sensitive Authentication Data
You must, and you must cause your Covered Parties, to:
• store Cardholder Data only to facilitate American Express Card Transactions in accordance
with, and as required by, the Agreement,
• comply with the current PCI DSS and other PCI SSC Requirements applicable to your
processing, storing, or transmitting of Cardholder Data or Sensitive Authentication Data
no later than the effective date for implementing that version of the applicable
Requirement, and
• use, when deploying new or replacement PIN Entry Devices or Payment Applications (or
both), only those that are PCI-Approved.
You must protect all American Express Charge records, and Credit records retained pursuant
to the Agreement in accordance with these data security provisions; you must use these
records only for purposes of the Agreement and safeguard them accordingly. You are
financially and otherwise liable to your Merchant Services Provider for ensuring your Covered
Parties' compliance with this Chapter 8, "
Protecting Cardmember Information" (other than for
demonstrating your Covered Parties' compliance with this policy under Section 8.7, "
Periodic
Validation of Merchant Systems" except as otherwise provided in that section).
8.5 Data Incident Management Obligations
You must notify your Merchant Services Provider immediately and in no case later than
seventy-two (72) hours after discovery of a Data Incident. In addition:
• You must conduct a thorough forensic investigation of each Data Incident.
• For Data Incidents involving 10,000 or more unique Card Numbers, you must engage a PFI
to conduct this investigation within five (5) days following discovery of a Data Incident.
• The unedited forensic investigation report must be provided to your Merchant Services
Provider in accordance with their time frame for completing such information.
• You must promptly provide to your Merchant Services Provider all Compromised Card
Numbers. American Express reserves the right to conduct its own internal analysis to
identify Card Numbers involved in the Data Incident.
Forensic investigation reports must be completed using the current Forensic Incident Final
Report Template available from PCI. Such report must include forensic reviews, reports on
compliance, and all other information related to the Data Incident; identify the cause of the
Data Incident; confirm whether or not you were in compliance with the PCI DSS at the time of
the Data Incident, and verify your ability to prevent future Data Incidents by (i) providing a plan
for remediating all PCI DSS deficiencies, and (ii) participating in the American Express
compliance program (as described below). Upon your Merchant Services Provider's request,
you shall provide validation by a QSA that the deficiencies have been remediated.
Notwithstanding the foregoing paragraphs of this Section 8.5, "
Data Incident Management
Obligations":
Remember if the Agreement
terminates, Cardholder Data can
only be retained according to the
PCI DSS which is available at
pcisecuritystandards.org
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
52
Merchant Operating Guide - U.S.
Protecting Cardmember Information :: Reserved
• American Express may, in its sole discretion, require you to engage a PFI to conduct an
investigation of a Data Incident for Data Incidents involving less than 10,000 unique Card
Numbers. Any such investigation must comply with the requirements set forth above in
this Section 8.5, "
Data Incident Management Obligations", and must be completed within
the time frame required by American Express.
• American Express may, in its sole discretion, separately engage a PFI to conduct an
investigation for any Data Incident and may charge the cost of such investigation to you.
You must work with your Merchant Services Provider and American Express to rectify any
issues arising from the Data Incident, including consultations about your communications to
Cardmembers affected by the Data Incident and providing (and obtaining any waivers
necessary to provide) to your Merchant Services Provider all relevant information to verify your
ability to prevent future Data Incidents in a manner consistent with the Agreement.
Notwithstanding any contrary confidentiality obligation in the Agreement, American Express
has the right to disclose information about any Data Incident to Cardmembers, Issuers, other
participants on the American Express Network, and the general public as required by
Applicable Law; by judicial, administrative, or regulatory order, decree, subpoena, request, or
other process; in order to mitigate the risk of fraud or other harm; or otherwise to the extent
appropriate to operate the American Express Network.
8.6 Reserved
8.7 Periodic Validation of Merchant Systems
You must take the following actions to validate under PCI DSS annually and every 90 days as
described below, the status of your equipment, systems and/or networks (and their
components) on which encryption keys, Cardholder Data, or Sensitive Authentication Data (or
a combination of each) are stored, processed or transmitted.
There are four actions required to complete validation:
Action 1 – Participate in American Express’ PCI compliance program under this policy.
Action 2 – Understand your Merchant Level and Validation Requirements.
Action 3 – Complete the Validation Documentation that you must send to your Merchant
Services Provider.
Action 4 – Send the Validation Documentation to your Merchant Services Provider within the
prescribed timelines.
Action 1 - Participate in American Express' Compliance Program under this Policy
Level 1 Merchants and Level 2 Merchants, as described below, must participate in American
Express’ PCI Compliance Program under this policy by providing the full name, email address,
telephone number, and physical mailing address of an individual who will serve as their general
data security contact. You must submit this information to your Merchant Services Provider.
You must notify your Merchant Services Provider if this information changes, providing
updated information where applicable. Your failure to provide such contact information may
result in the assessment of non-compliance fees. Please contact your Merchant Services
Provider for more information regarding its data security compliance requirements.
American Express may designate, at our sole discretion, certain Level 3 and Level 4 Merchants'
participation in American Express' compliance program under this policy by sending them
written notice. Any such Merchant must enroll in the compliance program no later than ninety
(90) days following receipt of the notice.
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Protecting Cardmember Information :: Periodic Validation of Merchant Systems
Action 2 - Understand Your Merchant Level and Validation Requirements
Most Merchant Levels are based on the volume of Transactions submitted by all of your
Establishments. You will fall into one of the Merchant Levels specified in the following table.
Table 8-1: Merchant Validation Documentation
* For the avoidance of doubt, Level 3 and Level 4 Merchants need not submit Validation
Documentation unless required at American Express' discretion, but nevertheless must
comply with, and are subject to liability under all other provisions of these Data Security
Requirements.
American Express reserves the right to verify the completeness, accuracy, and
appropriateness of your PCI Validation Documentation. American Express may require you to
provide additional supporting documents for evaluation in support of this purpose.
Additionally, American Express has the right to require you to engage a QSA or PFI.
Merchant Level/
Annual American
Express
Transactions
Report on
Compliance
Attestation of
Compliance (ROC
AOC)
Questionnaire Attestation of Compliance
(SAQ AOC) AND Quarterly External
Network Vulnerability Scan (Scan)
Level 1/
2.5 million or more
Mandatory Not applicable
Level 2/
50,000 to 2.5 million
Optional SAQ AOC mandatory (unless submitting a
ROC AOC); scan mandatory with certain SAQ
types
Level 3/*
10,000 to 50,000
Optional SAQ AOC optional (mandatory if required by
American Express); scan mandatory with
certain SAQ types
Level 4/*
10,000 or less
Optional SAQ AOC optional (mandatory if required by
American Express); scan mandatory with
certain SAQ types
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Protecting Cardmember Information :: Periodic Validation of Merchant Systems
Table 8-2: Service Provider
Action 3 - Complete the Validation Documentation
Level 1, Level 2, and certain Level 3 and Level 4 Merchants must submit the Validation
Documentation marked "mandatory validation documentation" in the table in Action 2.
• Level 1 Merchants' Validation Documentation must include the AOC from the annual onsite
security assessment report.
• Level 2 Merchants' Validation Documentation must include the AOC from the SAQ and the
AOSC or the executive summaries of findings of the Quarterly Network Scans, as
Validation Documentation
Report on Compliance
Attestation of
Compliance (ROC AOC)
– (Annual Requirement)
Self-Assessment
Questionnaire
Attestation of
Compliance (SAQ AOC) –
(Annual Requirement)
Approved Scanning
Vendor External Network
Vulnerability Scan
Summary (ASV Scan) –
(90 Day Requirement)
The Report on Compliance
documents the results of a
detailed onsite examination
of your equipment, systems,
and networks (and their
components) where
Cardholder Data or
Sensitive Authentication
Data (or both) are stored,
processed or transmitted.
The Report on Compliance
must be performed by:
• a QSA or
• you and attested by your
chief executive officer,
chief financial officer,
chief information
security officer, or
principal
The AOC must be signed
and dated by a QSA or
Internal Security Assessor
(ISA) and the authorized
level of leadership within
your organization and
provided to your Merchant
Service Provider at least
once per year.
The Self-Assessment
Questionnaires allow self-
examination of your
equipment, systems, and
networks (and their
components) where
Cardholder Data or
Sensitive Authentication
Data (or both) are stored,
processed, or transmitted.
There are multiple versions
of the SAQ. You will select
one or more based on your
Cardholder Data
Environment.
The SAQ may be completed
by personnel within your
Company qualified to
answer the questions
accurately and thoroughly
or you may engage a QSA to
assist. The AOC must be
signed and dated by the
authorized level of
leadership within your
organization and provided to
your Merchant Service
Provider at least once per
year.
An external vulnerability
scan is a remote test to help
identify potential
weaknesses, vulnerabilities,
and misconfigurations of
internet-facing components
of your Cardholder Data
Environment (e.g., websites,
applications, web servers,
mail servers, public-facing
domains, or hosts).
The ASV Scan must be
performed by an Approved
Scanning Vendor (ASV).
If required by the SAQ, the
ASV Scan Report
Attestation of Scan
Compliance (AOSC) or
executive summary
including a count of scanned
targets, certification that the
results satisfy PCI DSS
scanning procedures, and
compliance status
completed by ASV, must be
submitted to your Merchant
Service Provider at least
once every 90 days.
ROC or AOC are not
required to provide an AOSC
or ASV Scan executive
summary unless specifically
requested. For the
avoidance of doubt, Scans
are mandatory if required by
the applicable SAQ.
Visit pcisecuritystandards.org
for:
• Lists of Qualified Security
Assessors (QSAs) and
Approved Scanning
Vendors (ASVs)
• Self Assessment
Questionnaires (SAQs)
• The Attestation of
Compliance (AOC) and
Attestation of Scan
Compliance (AOSC)
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55
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Protecting Cardmember Information :: Reserved
described in the table above. Level 2 Merchants may choose to submit the AOC from the
annual onsite security assessment report if preferred.
• Level 3 Merchants and Level 4 Merchants are not required to submit Validation
Documentation unless requested by American Express (but must comply with, and are
subject to liability under, all other provisions of this policy).
Action 4 – Send the Validation Documentation to your Merchant Services Provider
All Merchants required to participate in the American Express PCI Compliance Program must
submit the Validation Documentation marked “mandatory” in the tables in Action 2.
You must submit your Validation Documentation to your Merchant Services Provider as
instructed by them. If you have general questions about the program or the process of
submitting Validation Documentation, please contact your Merchant Services Provider.
Compliance and validation are completed at your expense. By submitting Validation
Documentation to your Merchant Services Provider, you represent and warrant that you are
authorized to disclose the information contained therein to your Merchant Services Provider
and to American Express, and are providing the Validation Documentation without violating any
other party's rights.
8.7.1 Merchants Not Compliant with PCI DSS
If you are not compliant with the PCI DSS, then you must submit one of the following
documents:
• An Attestation of Compliance (AOC) including “Part 4. Action Plan for Non-Compliant
Status”
• A PCI Prioritized Approach Tool Summary and Attestation of Compliance (PASAOC)
Each of the above documents must designate a remediation date, not to exceed twelve (12)
months following the document completion date, in order to achieve compliance. You must
submit the appropriate document(s) to your Merchant Services Provider. You shall provide
your Merchant Services Provider with periodic updates of your progress toward remediation
under the "Action Plan for Non-Compliant Status".
8.7.2 Non-Validation Fees and Termination of Agreement
American Express and your Merchant Services Provider have the right to impose non-
validation fees and terminate the Agreement if you do not fulfill these requirements or fail to
submit the mandatory Validation Documentation by the applicable deadline.
Your Merchant Services Provider will notify you separately of the applicable deadline for each
annual and quarterly reporting period.
If your Merchant Services Provider does not receive your mandatory Validation
Documentation, then your Merchant Services Provider may have the right to terminate the
Agreement in accordance with its terms as well as impose non-validation fees on you.
8.8 Reserved
8.9 Disclaimer
AMERICAN EXPRESS HEREBY DISCLAIMS ANY AND ALL REPRESENTATIONS, WARRANTIES,
AND LIABILITIES WITH RESPECT TO THESE DATA SECURITY REQUIREMENTS, THE PCI DSS,
THE EMV SPECIFICATIONS, AND THE DESIGNATION AND PERFORMANCE OF QSAs, ASVs,
OR PFIs (OR ANY OF THEM), WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE,
INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. Issuers are not third-party beneficiaries under these Data Security Requirements.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
56
Merchant Operating Guide - U.S.
Protecting Cardmember Information :: Disclaimer
For further information about American Express Data Security requirements, please visit
www.americanexpress.com/dsr
For information about PCI Security Standards, LLC:
• PCI Data Security Standards
• Self Assessment Questionnaire
• List of Qualified Security Assessors
• List of Approved Scanning Vendors
• List of PCI Forensic Investigators
www.pcisecuritystandards.org
9
Fraud Prevention 9
9.1 Introduction
9.2 Transaction Process
9.3 Strategies for Deterring Fraud
9.4 Card Acceptance Policies
9.5 Card Security Features
9.6 Recognizing Suspicious Activity
9.7 Prepaid Card Security Features
9.8 Recognizing Suspicious Activity for Prepaid Cards
9.9 Travelers Cheque and Gift Cheque Security Features
9.10 Fraud Mitigation Tools
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58
Merchant Operating Guide - U.S.
Fraud Prevention :: Introduction
9.1 Introduction
You work hard to protect the interests of your business and Cardmembers. Unfortunately,
fraudulent Card use can undermine your best efforts. Millions of dollars are lost each year
because of such fraud.
American Express offers a full suite of tools and programs that can help to mitigate the chances
of fraud on American Express Cards and reduce this cost to your business.
Some Merchants may not be eligible to participate in the full suite of fraud tools and fraud
liability shift programs offered. Additionally, American Express may, in our sole discretion,
immediately suspend or terminate a Merchant from using any fraud tool or participation in any
fraud liability shift program and American Express may suspend or terminate any fraud tool or
fraud liability shift program at any time.
This chapter of the Merchant Operating Guide offers fraud mitigation tips for both Card Present
and Card Not Present Transactions. Contact your Merchant Services Provider for information
related to fraud mitigation tools and resources that may be available for your use.
9.2 Transaction Process
Our primary strategy for combating fraudulent Card use is to address it at the point of
Authorization. To accomplish this, we work with Merchants and their Merchant Services
Providers to implement best practices and fraud mitigation tools.
While fraud usually is thought of as a deceptive act at the point of sale, detection can actually
occur during any stage in the Transaction process. For this reason, "fraud detection", as
depicted in the following graphic, applies throughout the entire Transaction process.
* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.
DATA SECURITY
FRAUD DETECTION
TRANSACTION PROCESS
*
Cardmember
utilizes Card
for payment
Merchant
obtains
Authorization
Merchant
submits
Charge for
Settlement
Merchant
Services
Provider
settles with
Merchant
Cardmember
receives
billing
statement
A dispute
case is
opened
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Merchant Operating Guide - U.S.
Fraud Prevention :: Strategies for Deterring Fraud
9.3 Strategies for Deterring Fraud
Implementing multiple layers of fraud protection to help secure your business is
recommended. These layers may include a combination of your point of sale procedures and
controls as well as implementation of fraud mitigation tools.
Layers of Protection
Your first layer for mitigating fraud is to follow the Card acceptance policies and procedures, as
outlined in Chapter 4, "Transaction Processing"
. Other fraud mitigation strategies that you
choose to implement may include any combination of:
• recognition of suspicious behaviors or circumstances that may signal fraudulent activity
• implementation of fraud mitigation tools that take advantage of American Express' risk
controls to identify fraudulent activity
• additional risk models or controls that you can develop internally or obtain externally from
third parties
American Express is committed to working with you and your Merchant Services Provider to
deploy tools that can help reduce the likelihood that fraudulent Charges will be Approved. The
implementation and use of the strategies and tools detailed in this section, however, does not
guarantee that (i) the person making the Charge is the Cardmember, (ii) the Charge is in fact
valid or bona fide, (iii) you will be paid for the Charge, or (iv) you will not be subject to a
Chargeback.
Criminals
attempt to
circumvent
the Merchant’s
control systems
and procedures
Merchant Internal
Controls
Adherence to Card
Acceptance Policies
Scrutiny of Card
Security Features
Recognition of
Suspicious
Behavior
Fraud Mitigation
Tool #1
Fraud Mitigation
Tool #2
Fraud Mitigation
Tool #3, 4, 5, etc.
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Merchant Operating Guide - U.S.
Fraud Prevention :: Card Acceptance Policies
The following illustration compares data captured during a standard Card Not Present Charge
(left) with the amount of data that can be captured when fraud mitigation tools are
implemented (right).
9.4 Card Acceptance Policies
A critical component in your overall fraud mitigation strategy is to follow your Merchant
Services Provider's operating instructions, including our Card acceptance procedures as
defined in Chapter 4, "Transaction Processing"
. These procedures can also serve as a your first
line of defense against potential fraud. The additional layers of fraud mitigation mentioned
previously can supplement this line of defense.
9.5 Card Security Features
In many cases, the physical appearance of the Card will offer the most obvious clues of
fraudulent activity.
American Express Card security features are designed to help you assess whether a Card is
authentic or has been altered. Ensure that all of your personnel are familiar with our Card's
security features so they can identify potentially compromised Cards.
The following picture is just one example of an American Express Card as a number of different
Cards are offered. These are some things you must look for:
1. Pre-printed CID Numbers usually appear above the Card Number, on either the right or the
left edge of the Card.
2. All American Express Card Numbers start with "37" or "34." The Card Number appears
embossed on the front of the Card. Embossing must be clear, and uniform in sizing and
spacing. Some Cards also have the Card Number printed on the back of the Card in the
signature panel. These numbers, plus the last four digits printed on the Charge Record,
must all match.
3. Do not accept a Card outside the Valid Dates.
Card Not Present Charge:
Standard
Card Not Present Charge:
Our Suite of Fraud Mitigation Used
Card: 37XXXXXXXXX2009
Name: C.F. Frost
Amount: $257
Merchant: Internet Merchant XXXXXXXX01
CID Number: XXXX
AAV: 2213 E Main, 85021
AAV Name: C.F. Frost
AAV Phone: 814-880-1234
Email: cffrost@ispprovider.net
IP Address: 122.22.15.18
Host Name: PHX.QW.AOL.COM
Ship to Address: 995 Sansone St, 94116
Ship to Phone: 415.555.5555
Ship to Country: USA
Card: 37XXXXXXXXX2009
Amount: $257
Merchant: Internet Merchant XXXXXXXX01
DATA CAPTURED
1
5
2
3
4
7
6
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Merchant Operating Guide - U.S.
Fraud Prevention :: Card Security Features
4. Only the person whose name appears on an American Express Card is entitled to use it.
Cards are not transferable.
5. Some Cards contain a holographic image on the front or back of the plastic to determine
authenticity. Not all American Express Cards have a holographic image.
6. Some Cards have a Chip on which data is stored and used to conduct a Charge.
7. The signature on the back of the Card must match the Cardmember's signature on the
Charge Record, and must be the same name that appears on the front of the Card. The
signature panel must not be taped over, mutilated, erased, or painted over. Some Cards
also have a three-digit Card Security Code (CSC) number printed on the signature panel.
Note: The security features for Prepaid Cards and Travelers Cheques are listed in
Section 9.7, "
Prepaid Card Security Features" and Section 9.9, "Travelers Cheque
and Gift Cheque Security Features".
9.5.1 Compromised Card Security Features
In this example of an altered Card, the signature panel has been painted white under the
signature. In addition, the Card Number has been erased from the back panel.
Do not accept a Card if:
Altered Magnetic Stripe
• The Magnetic Stripe has been altered or destroyed.
• The Card Number on the front of the Card does not match the number printed on the back
(when present), or the last four digits printed on the Charge Record (or both).
Altered Front of the Card
• The Card Number or Cardmember name on the front of the Card appears out of line,
crooked, or unevenly spaced.
• The ink on the raised Card Number or Cardmember name is smudged or messy.
• The Card Number or Cardmember name is not printed in the same typeface as the
American Express typeface.
Altered Back of the Card
• The Card Number printed on the back of the Card (when present) is different from the
Card Number on the front.
• The Card Number on the back of the Card (when present) has been chipped off or covered
up.
• The signature panel has been painted-out, erased, or written over.
Altered Appearance of the Card
• There are "halos" of previous embossing or printing underneath the current Card Number
and Cardmember name.
• A portion of the surface looks dull compared with the rest of the Card. Valid American
Express Cards have a high-gloss finish.
• The Card has a bumpy surface or is bent around the edges.
• You suspect any Card security features have been compromised.
The four-digit CID Number is
located on the front of the Card
where the three-digit CSC is
located on the back of the Card.
These codes are considered
Card security features and can
validate that the Card is present
for a Charge. You should prompt
your customers for the four-digit
CID Number.
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62
Merchant Operating Guide - U.S.
Fraud Prevention :: Recognizing Suspicious Activity
• The Card appears physically altered in any way.
If you suspect Card misuse, follow your internal store policies, and, if directed to do so, call your
Merchant Services Provider and state that you have a Code 10. Never put yourself or your
employees in unsafe situations, nor physically detain or harm the holder of the Card.
Often, you can look closely at Cards to determine if they're altered or counterfeit. As another
layer in your internal fraud prevention program, educate yourself and all your personnel on how
to identify a potentially altered Card.
9.6 Recognizing Suspicious Activity
Diligently scrutinizing behaviors and circumstances can help prevent you from being victimized
by fraud.
As a prudent Merchant, you must always be aware of circumstances that may indicate a
fraudulent scheme or suspicious behaviors that may flag a fraudulent customer.
Suspicious Behavior
A suspicious situation may arise, causing you to question the authenticity of the Card, or the
legitimacy of the person presenting it. Any single behavior may not be risky. However, when
customers exhibit more than one of the following behaviors, your risk factor may increase:
• larger-than-normal Transaction dollar amounts,
• orders containing many of the same items,
• orders shipped to an address other than a billing address,
• orders using anonymous/free email domains,
• orders sent to postal codes or countries where you show a history of fraudulent claims,
• orders of a "hot" product (i.e., highly desirable goods for resale),
• customer is a first-time shopper,
• customer is purchasing large quantities of high-priced goods without regard to color, size,
product feature, or price,
• customer comes in just before closing time and purchases a large quantity of goods,
• customer wants to rush or overnight the order,
• customer has a previous history of Disputed Charges,
• customer is rude or abusive toward you; wanting to rush or distract you,
• customer frequents your Establishment to make small purchases with cash, then returns
to make additional purchases of expensive items with a Card.
If you suspect Card misuse, follow your internal store policies, and immediately call your
Merchant Services Provider with a Code 10. Never put yourself or your employees in unsafe
situations, nor physically detain or harm the holder of the Card.
9.7 Prepaid Card Security Features
You are responsible for following all our Prepaid Card acceptance procedures in Section 4.4.7,
"Processing Prepaid Cards". Although there are a number of unique Prepaid Cards, all Prepaid
Cards share similar features, except that:
• Prepaid Cards may or may not be embossed, and
No single factor by itself is
indicative of risk; however, when
a combination of factors is
present during a Transaction,
additional scrutiny is warranted.
If you have any doubts of
suspicious activity call in a
Code 10.
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Merchant Operating Guide - U.S.
Fraud Prevention :: Recognizing Suspicious Activity for Prepaid Cards
• The following features may appear on the front or back of the Card (or a combination of
both):
1. The American Express logo generally appears in the bottom right corner.
2. The words PREPAID or INCENTIVE will generally be shown above the American
Express logo.
3. Cards pre-loaded with funds may show the dollar amount or the total points
(reloadable Cards generally will not show a number).
4. The CID Number will appear usually above the Card Number or above the logo.
5. The Card Number appears on the Card.
6. The Valid Date or Expiration Date appears on the Card.
7. The recipient's name or company name may appear on the Card; otherwise a generic
"Recipient" or "Traveler" may appear, or this area might be blank.
9.8 Recognizing Suspicious Activity for Prepaid Cards
American Express recommends that you follow the procedures in the preceding Section 9.6,
"Recognizing Suspicious Activity" in addition to being vigilant for the following suspicious
behaviors related specifically to Prepaid Cards:
• Customer frequently makes purchases and then returns goods for cash. (To avoid being
the victim of this scheme, you should follow your internal store procedures when you
cannot issue a Credit on the Card used to make the original purchase.)
• Customer uses Prepaid Cards to purchase other Prepaid Cards.
• Customer uses large numbers of Prepaid Cards to make purchases.
9.9 Travelers Cheque and Gift Cheque Security Features
Even though American Express' Travelers Cheques and Gift Cheques offer more convenience
and security, counterfeit products circulate worldwide. You must verify all cheque products
presented at your Establishment and contact the Travelers Cheque/Gift Cheque Customer
Service with questions or suspicions.
One of the easiest and most effective tests to determine authenticity is the smudge test:
1. Turn the cheque over (non-signature side).
2. Locate the denomination on the right side of the cheque. Wipe a moistened finger across
the denomination. The ink should not smudge.
3. Wipe a moistened finger across the denomination on the left side of the cheque. The ink
should smudge.
We offer a variety of cheque
verification solutions to help you
avoid accepting fraudulent
cheque products. For more
details about Authorization
solutions, contact us via email at
tconlineAuthorizations
@aexp.com.
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64
Merchant Operating Guide - U.S.
Fraud Prevention :: Fraud Mitigation Tools
The following shows an example of a smudge test:
For Travelers and Gift Cheque acceptance procedures, see Section 4.4.8, "Processing
Travelers/Gift Cheques". American Express also recommends that you follow the procedures in
the preceding Section 9.6, "
Recognizing Suspicious Activity" to assist you in the mitigation of
fraud.
As another layer of protection, there are a number of security features inherent in American
Express' Travelers Cheque and Gift Cheque products. Following are a few security features to
help you recognize an authentic Cheque.
9.10 Fraud Mitigation Tools
Fraud mitigation tools are available for both Card Present and Card Not Present Transactions to
help verify that a Charge is valid. These tools help you mitigate the risk of fraud at the point of
sale, but are not a guarantee that (i) the person making the Charge is the Cardmember, (ii) the
Charge is in fact valid or bona fide, (iii) you will be paid for the Charge, or (iv) you will not be
subject to a Chargeback.
For optimal use of the tools, it is critical that:
• you comply with the applicable sections of the Technical Specifications (see Section 2.4,
"Compliance with the Technical Specifications"), and
• you provide high quality data in the Authorization request.
American Express offers strategies and tools for preventing fraud. For more information about
what you and your business can do, review the tools listed below and contact your Merchant
Services Provider to determine what tools are supported.
left side smudges
right side does not smudge
Centurion Portrait
Watermark
Security Thread Holographic Foil
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65
Merchant Operating Guide - U.S.
Fraud Prevention :: Fraud Mitigation Tools
9.10.1 Card Not Present Fraud Tools
Table 9-1: Card Not Present Fraud Tools
Card
Identification
(CID)
Verification
Tool
Automated
Name and
Address
Verification
Email
Verification
Billing Phone
Number
Verification
Enhanced
Authorization
Description
You request the
four-digit CID
number printed on
the Card from the
Cardmember and
send it with the
Authorization
request to the
Issuer.
Issuer compares
the CID number
provided with that
on file for the Card
and, based on the
comparison, returns
a match code to
you.
You request name
and address
information from the
Cardmember at the
point of sale, and
provide this
information
electronically during
Authorization,
through your POS
terminal.
Issuer compares the
name and address
information you
provided with
Cardmember's
billing records and
provides a response
code indicating full,
partial, or no match.
You request email
address from the
Customer at the
point of sale, and
provide this
information
electronically
during an
Authorization.
Issuer compares
the email address
you provided with
email addresses
on file at American
Express and
returns a match
result.
You request billing
phone number
from the Customer
at the point of sale,
and provide this
information
electronically
during an
Authorization.
Issuer compares
the phone number
you provided with
Cardmember
billing phone
number and
returns a match
result.
Provides additional
data elements in
Authorization
requests describing
the transaction and
enabling a more
informed
Authorization
decision.
Purpose
Helps to ensure that
the person placing
the order actually
has the Card in their
possession and is
not using a stolen
Card Number.
Helps Issuer
evaluate
Cardmember
identity by
comparing
information provided
by the Cardmember
at the point of sale
with Cardmember
billing information
not available on the
Card.
Email Address
Verification helps
evaluate
Cardmember
identity by
comparing
information
provided by the
customer during
the check-out
process with
Cardmember
information not
available on the
Card.
Billing Phone
Number
Verification helps
evaluate
Cardmember
identity by
comparing
information
provided by the
customer during
the check-out
process with
Cardmember
information not
available on the
Card.
Helps mitigate fraud
before a Transaction
is authorized by
analyzing key data
elements submitted
with Authorization
requests.
Data elements
include shipping
address, transaction
origin, and airline
ticket details.
How To Implement
Contact your
Merchant Services
Provider
Contact your
Merchant Services
Provider
Contact your
Merchant Services
Provider
Contact your
Merchant Services
Provider
Contact your
Merchant Services
Provider
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Fraud Prevention :: Fraud Mitigation Tools
9.10.2 Card Present Fraud Tools
Table 9-2: Card Present Fraud Tools
Card
Identification
(CID)
Verification
Tool
Track 1 Chip Terminal ID Code 10
Description
You request the
four-digit CID
number printed on
the Card from the
Cardmember and
send it with the
Authorization
request to the
Issuer.
Issuer compares
the CID number
provided with that
on file for the Card
and, based on the
comparison,
returns a match
code to you.
POS terminal
captures data
encoded in the
Track 1 of the
Magnetic Stripe
and sends it to the
Issuer with the
Authorization
request.
Issuer compares
information in
track to
information on file
and sends approval
decision.
Chip technology
uses an embedded
microchip to
encrypt card
information,
making it more
difficult for
unauthorized users
to copy or access
the data. Data can
only be accessed
when the Card is
inserted into a
chip-enabled
terminal.
Captures a
numeric identifier
uniquely assigned
to each POS device
and sends it to the
Issuer with each
Authorization
request.
A special phrase you
use to indicate to your
Merchant Services
Provider that you have
suspicions concerning
the Cardmember, the
Card, the CID, and/or
the circumstances of
the sale.
Purpose
Helps to ensure
that the person
making the
purchase is not
using an altered or
duplicated Card.
Can signal
tampering and
alteration of the
Card's Magnetic
Stripe.
Provides enhanced
protection against
fraud from lost,
stolen, and
counterfeit Cards.
Helps detect high
risk patterns of a
particular POS
device.
Enables your Merchant
Services Provider to
speak with an
American Express
Authorizer on a card
present transaction
they assess as high
risk.
How To Implement
Contact your
Merchant Services
Provider
Contact your
Merchant Services
Provider
Contact your
Merchant Services
Provider
Contact your
Merchant Services
Provider
If you suspect Card
misuse, follow your
internal store policies,
and, if directed to do
so, call your Merchant
Services Provider with
a Code 10
Authorization Request.
Only pick up a Card if
directed to do so by
your Merchant
Services Provider or
the Issuer. Never put
yourself or your
employees in unsafe
situations.
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Risk Evaluation :: Introduction
10.1 Introduction
As a Merchant, you understand the hard work and dedication it takes to keep a business
running. At American Express, we also work hard to maintain our business and uphold our
reputation as a world-class global payments and network company. Part of our regimen is to
evaluate Merchants to ensure compliance with our policies and procedures, in addition to
assessing any potential risk to our business.
10.2 Prohibited Merchants
Some Merchants are not eligible (or may become ineligible) to accept the Card. American
Express may terminate Card acceptance (including immediate termination without prior
notice) if we determine or have reason to believe, in our sole discretion, that you meet any of
the following criteria:
• Participation as a Merchant on our Network or acceptance of Cards (or both) by you or any
of your Establishments may cause us not to be in compliance with Applicable Laws,
regulations, or rules.
• You do not have a verifiable physical address and can only be reached by telephone.
• You or any of your Establishments are involved (or knowingly participate or have
participated) in a fraudulent or illegal activity.
• You or any of your Establishments are identified as a sponsor of international terrorism as
warranting special measures due to money laundering concerns, or as non-cooperative
with international anti-money laundering principles or procedures.
Additionally, American Express may terminate acceptance of Cards by you or any of your
Establishments if:
• You are listed on the U.S. Department of Treasury, Office of Foreign Assets Control,
Specially Designated Nationals and Blocked Persons List (available at www.treas.gov/
ofac).
• You are listed on the U.S. Department of State’s Terrorist Exclusion List (available at
www.state.gov
).
• You are located in or operating under license issued by a jurisdiction identified by the U.S.
Department of State as a sponsor of international terrorism, by the U.S. Secretary of the
Treasury as warranting special measures due to money laundering concerns, or as
noncooperative with international anti-money laundering principles or procedures by an
intergovernmental group or organization of which the United States is a member.
• Your verifiable physical address is not located in the United States Region.
• You or any of your Establishments fall into one of the following categories and/or accept
Transactions for the prohibited activities displayed in the following table:
Table 10-1: Prohibited Business Types
Prohibited Business
Types
Description
Merchant
Category Code
(MCC)
Airlines & air carriers
(including charter airlines)
All airline and air carrier merchants,
including charter airlines.
3000-3302;
4511
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Bail/bail bond A sum of money paid by a criminal
defendant to be released from jail
under the condition that they appear
for court appearances. This does
not
include a bail bond fee (MCC
9223).
—
Bankruptcy services A company or agency that is in the
business of recovering money owed
on delinquent accounts or
supporting the bankruptcy process.
Examples include: bankruptcy
lawyers and bankruptcy debt
collection services.
—
Bullion Bulk metal in bars or ingots.
Examples include:
• Gold, silver, platinum, palladium
bullion
• Gold, silver, platinum, palladium
bars
• Precious metals
—
Car rental agencies Branded car rental agencies (e.g.,
Avis, Budget, Hertz).
3351-3441
Cash at Point of Sale/Cash on
Card
Cash-like transactions from financial
and non-financial institutions.
Examples include: money orders,
post offices, funding source for
payroll.
6051
Check cashing/guarantee A business that provides customers
with a way to turn a check into cash
without having to rely on a bank
account.
—
Child pornography An individual or entity providing or
associated with the visual depiction
of a minor engaged in obscene or
sexually explicit conduct, whether
made or produced by electronic,
mechanical, or other means.
—
Collection agencies A company that lenders use to
recover funds that are past due.
Examples include: debt collection
agencies, factoring companies, and
liquidators.
7322
Prohibited Business
Types
Description
Merchant
Category Code
(MCC)
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Commercial leasing A business that conveys land, real
estate, equipment, or other property
to another for a specified time in
return for regular periodic payment.
Examples include commercial real
estate and commercial vehicles,
such as trucks and marine vessels.
This does not
include residential
Real Estate Agents and Managers –
Rentals (MCC 6513).
—
Credit financing A merchant that provides financing
to customers, earning revenue on
that financing via fees and/or
interest. Examples include: credit
cards, personal loans, student loans,
car loans, mortgage payments.
6010
6011
6012
6051
Credit restoration A service aimed at improving credit
ratings by disputing errors and
outdated claims with credit bureaus.
—
Cryptocurrency Digital asset recognized as a medium
of exchange, unit of account and/or
store of value that employs
blockchain technology and
cryptography to submit,
authenticate, and verify
Transactions.
6051
Debt repayment (past due or
defaulted)
A company collecting payment of
overdue debt. Examples include:
payment to a collection agency,
factoring company, liquidator, or
insolvency practitioner/lawyer.
7322
Door-to-door sales Unsolicited individual (who may go
from door to door) selling goods
and/or services with immediate
payment expected. Examples
include: magazine subscriptions,
satellite dish sales, security systems,
and solar panels.
5963
Escort services A business, agency, or person who,
for a fee, provides or offers to provide
a companion.
—
Foreign exchange A business or financial institution
that has the legal right to exchange
one currency for another currency.
Examples include: airport kiosk
bank.
6051
Prohibited Business
Types
Description
Merchant
Category Code
(MCC)
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Risk Evaluation :: Prohibited Merchants
Gambling The wagering of money or something
of value on an event with an
uncertain outcome, with the primary
intent of winning money or material
goods.
Examples include:
• Regulated (real money) betting,
including casino, poker, sports
betting, lottery tickets
• Advance-deposit wagering,
including horse/dog racing
• Fantasy sports
• Skill-based, pay-to-play games
that award monetary prizes
• Games of chance that are not
free to enter and award monetary
prizes
• Government-owned and other
lotteries
• Gambling chips
• Gambling credits
7800
7801
7802
7995
9406
Prohibited Business
Types
Description
Merchant
Category Code
(MCC)
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Risk Evaluation :: Prohibited Merchants
Indirect acceptor models A payment intermediary that
contracts with American Express to
facilitate payments to multiple,
eligible third-party End Beneficiaries.
The Indirect Acceptor accepts the
Card, but does not send Card
information to the End Beneficiary
and pays eligible End Beneficiaries
using another method, such as bank
transfer, check, or wire.
Examples include:
• Digital Wallet Operator offering
any of the following payment
functionality to allow
Cardmembers to make
purchases or transfer funds
through one or more methods:
• Staged Back-to-Back
Transaction
• Peer to Peer (P2P)
Transaction
• Stored Value Transaction
(sometimes called Top Up)
• Bill Payment Provider
• Marketplaces
• Installment Payment
Transactions (sometimes called
Buy Now Pay Later) (that do not
meet American Express eligibility
requirements).
—
Investments A purchase made for speculative
purposes, or with the intent of future
profit or appreciation. Examples
include, but are not limited to
securities (stocks, bonds,
commodities, and mutual funds)
wine with delivery that exceeds one
(1) year from purchase, and
investment on futures.
—
Licensed insolvency
practitioners
A professional intermediary in
insolvency procedures.
—
Lodging – Hotels, Motels,
Resorts (including "branded"
Central Reservation Services)
Branded lodging establishments
(e.g., Best Western, Hilton, Marriott).
3501-3999
Prohibited Business
Types
Description
Merchant
Category Code
(MCC)
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Marijuana-related businesses Any individual or entity that
manufactures, processes,
distributes, or dispenses marijuana,
or byproducts or derivatives of
marijuana, whether for recreational
or medicinal purposes, and whether
or not subject to a governmental
licensing regime.
—
Multi-level marketing /
pyramid selling (also referred
to as Direct Marketing –
Inbound/Outbound
Telemarketing)
A sales system that uses one or
more of the following practices:
• Participants pay money for the
right to receive compensation for
recruiting new participants.
• A participant is required to buy a
specific quantity of products,
other than at cost price for the
purpose of advertising, before
the participant is allowed to join
the plan or advance within the
plan.
• Participants are knowingly sold
commercially unreasonable
quantities of the product or
products (this practice is called
inventory loading).
• Participants are not allowed to
return products on reasonable
commercial terms.
5966
5967
Online adult entertainment A business or entity that provides
internet adult digital content.
—
Payday lending A company that lends customers
money at high interest rates on the
agreement that the loan will be
repaid when the borrower receives
their next pay-check.
—
Person-to-Person Payments A service that allows customers to
transfer funds from their bank
account or credit card to another
individual's account via the Internet
or a mobile device.
6538
Prostitution A person or business providing
sexual services in return for
payment.
—
Real Estate Down Payments An initial payment when the real
estate is purchased on credit.
6012
6051
Prohibited Business
Types
Description
Merchant
Category Code
(MCC)
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Risk Evaluation :: Monitoring
This list is not exhaustive and American Express may, in its sole discretion, consider other
prohibited merchant categories and modify this list accordingly.
Please contact your Merchant Services Provider for more information on prohibited merchant
categories and activities.
Mixed Business
If any segment of your or any of your Establishments business falls into any of the
aforementioned business types, you and your Establishments must not accept the Card for
those Transactions. If you or any of your Establishments accept the Card for these
Transactions, American Express will exercise Chargeback. American Express may also place
you or any of your Establishments in one of American Express' Chargeback programs, cancel
or disentitle acceptance of Cards by you or any of your Establishments, and/or request
termination of your merchant agreement with your Merchant Services Provider (or take any
combination of these actions).
10.3 Monitoring
After you become a Merchant on the Network, American Express monitors to identify potential
risks. American Express uses internal and third-party information when monitoring and looks
for, among other things:
• disproportionate Disputed Charges and Chargebacks,
• Merchants that meet the High Risk Merchant criteria set forth in Subsection 10.3.1, "
High
Risk Merchants",
• schemes to defraud American Express,
• legal, compliance, or other credit and fraud risks, and
• data submitted in compliance with the Technical Specifications.
Steamships & cruise lines
(incl. onboard cruise shops)
Steamship and cruise line
merchants.
4411
Telemarketing – travel related A business that telemarkets travel
related products or services or other
travel arrangements.
5962
Timeshares Selling partial ownership of a
property for use as a holiday home,
whereby a Cardmember can buy the
rights to use the property for the
same fixed period annually.
7012
Virtual currency Digital money not authorized or
adopted by a government. Issued
and controlled by its developers and
used and accepted among members
of a specific virtual community.
6051
Wire transfers in-person
(not online)
A business that specializes in the
transfer of money from one location
to another.
4829
Prohibited Business
Types
Description
Merchant
Category Code
(MCC)
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Risk Evaluation :: Monitoring
American Express will monitor you for actions or behaviors (or both) which may put American
Express, Issuers, or Cardmembers at risk. Based on the results of American Express’
monitoring, American Express reserves the right to take action to mitigate its risk, including
one or more of the following (in American Express’ sole judgment):
• requesting information about your finances and operations,
• instituting Card acceptance restrictions,
• exercising Chargeback, rejecting Charges, charging fees, or assessments,
• requiring corrective action by the Merchant, or
• terminating any Card acceptance privileges or suspending those privileges until the risk
has subsided.
10.3.1 High Risk Merchants
High Risk Merchants are those types of businesses that we determine put us at risk and/or
whose business has excessive occurrences of fraud.
If we determine, in our sole discretion, that you meet the criteria for one or more of the High
Risk Merchant categories, we may place you in a Chargeback program and/or terminate Card
acceptance.
We consider you to be "high risk" if you meet at least one criterion in the following table:*
Table 10-2: High Risk Merchants
* This list is not exhaustive and American Express may, in its sole discretion, consider other
criteria as high risk and modify this list accordingly.
10.3.2 Fraudulent, Deceptive, or Unfair Business Practices, Illegal Activities, or Prohibited
Uses of the Card
If we determine or have reason to believe, in our sole discretion, that you engage or have
engaged (or knowingly participate or knowingly have participated) in any of the activities listed
in the following table; in any scheme that defrauds American Express, Issuers, and/or our
Cardmembers; or in business practices that we deem fraudulent, deceptive, and/or unfair, we
may take corrective action on you, which may include but is not limited to:
• placement in a Chargeback program,
• exercising Chargeback or rejecting Charges, or
Category Description
High risk industry Your type of business has had historically high occurrences of fraud
and Disputed Charges with us or as compared to other similarly
situated Merchants (or both). Examples of high risk industries
include: internet electronic delivery and facilitators.
Performance You have recent high occurrences of fraud that present an excessive
risk to us. You have had high occurrences of fraud and/or high fraud
amounts for a number of consecutive months.
Canceled derogatory Your Agreement was canceled due to unsatisfactory activity.
Fictitious You accept Cards fraudulently.
Prohibited You are not eligible to accept the Card on the American Express
Network. For prohibited criteria see Section 10.2, "
Prohibited
Merchants".
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• termination of the Agreement (including immediate termination without prior notice to
you) or disentitlement of Card acceptance.
Table 10-3: Risk Management Definitions
This list is not exhaustive and does not reflect all circumstances under which American Express
may act to protect the interest of American Express.
10.3.2.1 Consumer Protection Monitoring Program
American Express monitors the Network for fraudulent, deceptive, and unfair practices relating
to the sale, advertising, promotion, or distribution of goods or services to consumers. If
American Express determines or has reason to believe, in American Express’ sole discretion,
that you engage or have engaged (or knowingly participate or knowingly have participated) in
such fraudulent, deceptive, or unfair practices, you may be placed in American Express’
Consumer Protection Monitoring Program. Examples of instances that might trigger American
Express’ review of a particular Merchant or Establishment include, but are not limited to,
frequent consumer complaints, regulatory or consumer advocate (e.g., Better Business
Bureau) inquiries, media coverage of a particular Merchant and/or industry, and high levels of
Disputed Charges and/or Chargebacks.
If you are placed in the Consumer Protection Monitoring Program, American Express will
require that a questionnaire be completed regarding your business practices, and conduct an
investigation.
American Express may suspend or refuse to allow Card acceptance at an Establishment, or
cancel (or disentitle) Card acceptance, if:
Factoring
Factoring occurs when Transactions do not represent bona fide sales
of goods or services at your Establishments (e.g., purchases at your
Establishments by your owners (or their family members) or
employees contrived for cash flow purposes).
Collusion
Collusion refers to activities whereby your employee collaborates
with another party to conduct fraudulent Transactions. It is your
responsibility to set appropriate controls to mitigate such activity as
well as to have monitoring systems to identify such activity.
Marketing fraud
Marketing fraud occurs when mail, telephone, or Internet Order
solicitations are used for fraudulent or deceptive purposes (e.g., to
obtain valid Cardmember Information for fraudulent Transactions, or
to charge unauthorized sales to a valid Card account).
Identity theft
Identity theft is the assumption of another person's identity to gain
access to their finances through fraudulent Merchant setup or
fraudulent Transactions.
Illegal activities,
fraudulent
(other than
marketing),
unfair or
deceptive
business
practices, or
prohibited uses
of the Card
If American Express determines, or has reason to believe, in
American Express' sole discretion, that you engage or have engaged
(or knowingly participate or knowingly have participated) in
fraudulent, deceptive, or unfair business practices, or accepted the
Card to facilitate, directly or indirectly, illegal activity of any kind, and
without waiving American Express' other rights and remedies,
American Express has the right to terminate Card acceptance.
If American Express finds that the Transaction involved a prohibited
use of the Card (see Section 3.3, "
Prohibited Uses of the Card"),
American Express may apply the corrective actions listed above.
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• you do not respond to American Express’ questionnaire, by the date American Express
designates, with sufficient information about your business practices, and/or
• American Express concludes, in American Express’ sole discretion, that you or the
Establishment in question engage or have engaged (or knowingly participate or knowingly
have participated) in fraudulent, deceptive, or unfair practices relating to the sale,
advertising, promotion, or distribution of goods or services to consumers.
If, in the course of American Express’ investigation, it does not appear that you engage or have
engaged (or knowingly participate or knowingly have participated) in such fraudulent,
deceptive, or unfair practices, American Express still may conduct an annual investigation of
your business practices.
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Chargebacks and Inquiries :: Introduction
11.1 Introduction
This chapter describes how American Express processes Chargebacks and Inquiries.
Highlights of this chapter include:
• a discussion of the American Express Disputed Charge process,
• a review of Chargeback and Inquiry reasons,
• an overview of the American Express Chargeback policies, and
• tips for avoiding Chargebacks and Inquiries, and preventing fraud.
11.2 Transaction Process
Charges may be disputed for a variety of reasons. In general, most Disputed Charges stem
from:
• Cardmember dissatisfaction with some aspect of the purchase, (e.g., a failure to receive
the merchandise, duplicate billing of a Charge, incorrect billing amount),
• an unrecognized Charge where the Cardmember requests additional information, or
• actual or alleged fraudulent Transactions.
If a Cardmember disputes a Charge, American Express opens a case. We may also open cases
when Issuers or the Network initiates disputes. If a case is opened, we may initiate a
Chargeback to you immediately or send you an Inquiry.
You must not suggest or require Cardmembers to waive their right to dispute any Transaction.
* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.
11.3 Disputed Charge Process
11.3.1 Mapping out the Disputes Process
Most disputes begin when a Cardmember contacts American Express with a question or
problem with a specific Transaction. Disputes can be complicated. This step-by-step flowchart
can help make the process clearer, so you know what to expect if a Charge is disputed.
DATA SECURITY
FRAUD DETECTION
TRANSACTION PROCESS
*
Cardmember
utilizes Card
for payment
Merchant
obtains
Authorization
Merchant
submits
Charge for
Settlement
Merchant
Services
Provider
settles with
Merchant
Cardmember
receives
billing
statement
A dispute
case is
opened
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Chargebacks and Inquiries :: Disputed Charge Process
11.3.2 With respect to a Disputed Charge:
• You may receive an Inquiry from your Merchant Services Provider prior to a Chargeback
being exercised, or
• Prior to receiving an Inquiry, you may receive a Chargeback if it is determined that
sufficient information is available to resolve the Disputed Charge in favor of the
Cardmember.
11.3.3 American Express has Chargeback rights:
• whenever Cardmembers bring Disputed Charges, as described in this chapter, or have
rights under Applicable Law or contract to withhold payments,
• in cases of actual or alleged fraud relating to Charges,
• if you do not comply with the Agreement (including sending incomplete or incorrect
Transaction Data in Charge Submissions), even if your Merchant Services Provider and/or
American Express had notice when you were paid by your Merchant Services Provider for a
Charge that you did not so comply and even if you obtained Authorization for the Charge in
question, or
• as provided elsewhere in the Agreement.
Contact your Merchant Services Provider for additional information and guidance regarding
Disputed Charges and Chargebacks.
A CHARGE IS DISPUTED
INQUIRY
If American Express cannot resolve
the dispute with readily available
information, then American
Express will send an Inquiry notice
to your Merchant Services Provider.
UPFRONT CHARGEBACK
If the Cardmember provides
American Express with enough
information, then American
Express will send a Chargeback
notice to your Merchant Services
Provider.
Your Merchant Services Provider
will send the Inquiry notice to
you requesting supporting
documents.
Your Merchant Services Provider
will send the Chargeback notice
to you requesting supporting
documents.
CASE
RESOLVED
The case may be
resolved in your favor
if you provide the
requested information
and supporting
documents within the
time frame specified.
A Chargeback will be
processed if your reply
is insufficient, or is not
received on time.
CHARGEBACK
REVERSAL
A reversal may be
processed if you
provide the
requested
supporting
documents within
the time frame
specified.
CHARGEBACK
STANDS
The Chargeback
stands if your reply
is insufficient; or is
not received on time.
American Express will work directly with the Cardmember and try to resolve the case
before sending an Inquiry or Chargeback notice.
Your Merchant
Services Provider will
let you know applicable
time frames for
responding to notices
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Chargebacks and Inquiries :: Chargeback Reasons
11.4 Chargeback Reasons
If you receive a Chargeback from American Express, for any reason, you can use this section to
learn more about what actions you can take. Remember to always respond within the time
frame provided by your Merchant Services Provider.
Table 11-1: Chargeback Reasons
Reason What It Means
What You Can Provide To Appeal
The Chargeback
Authorization
Charge amount
exceeds
authorization
amount
The amount of the
authorization approval
was less than the
amount of the Charge
you submitted.
• Proof that a valid authorization approval
was obtained for the full amount of the
Charge in accordance with the Agreement
unless exceptions apply, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
No valid
authorization
The Charge you
submitted did not
receive a valid
authorization approval;
it was declined or the
Card was expired.
• Proof that a valid authorization approval
was obtained in accordance with the
Agreement, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
For a Transit Contactless Transaction, proof
that:
• Authorization was obtained within the
Authorization Time Period for any
Aggregated Charge that caused the
combined taps since the most recent
approved Authorization to exceed the
Chargeback Protection Threshold
• A new Account Status Check
Authorization was obtained at the time
when the most recent approved
Authorization exceeded the Authorization
Time Period, or
• if the Account Status Check or
Authorization was declined, the
Transaction amount was less than or equal
to the Declined Authorization Protection
Threshold.
For "expired or not yet valid Card", the
following support is also acceptable:
• Proof that the Charge was incurred prior
to the Card expiration date or within the
valid dates on the Card.
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Authorization
approval expired
The Charge was
submitted after the
authorization approval
expired.
• Proof that a valid authorization approval
was obtained in accordance with the
Agreement, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Cardmember Disputes
Credit not
processed
We have not received
the Credit (or partial
Credit) you were to
apply to the Card.
• If no Credit (or only partial Credit) is due, a
written explanation of why Credit is not
due with appropriate documents to
support your position, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Goods/services
returned or refused
The goods or services
were returned or
refused but the
Cardmember did not
receive Credit.
• If returned: a copy of your return policy, an
explanation of your procedures for
disclosing it to the Cardmember, and
details explaining how the Cardmember
either did not follow the return policy or
did not return the goods to your business,
or
• A copy of the Charge Record indicating the
terms and conditions of the purchase with
details explaining how the Cardmember
did not follow the policy, or
• If goods/services refused: proof that the
goods/services were accepted (e.g.
signed delivery slip if the goods were
delivered, screen print showing use of the
service if service was provided via
internet), or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Goods/services
canceled
The Cardmember
claims that the goods/
services ordered were
canceled.
• A copy of your cancellation policy, an
explanation of your procedures for
disclosing it to the Cardmember, and
details explaining how the Cardmember
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 Cardmember
did not follow the policy, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Reason What It Means
What You Can Provide To Appeal
The Chargeback
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Goods/services not
received or only
partially received
The Cardmember
claims to have not
received (or only
partially received) the
goods/services.
• Proof that the goods or services were
received in their entirety by the
Cardmember or the Cardmember's
authorized representative, or
• Proof that the goods or services were
delivered to the address specified by the
Cardmember, or
• Completion of work order approved in
writing by the Cardmember showing the
Cardmember received the services and
dates that the services were used/
provided, or
• Proof refuting Cardmember's claim that
services were canceled or that the goods
were returned to the Merchant, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed, or
• Submission of Compelling Evidence
(please contact your Merchant Services
Provider for additional information).
Paid by other means The Cardmember has
provided us with proof
of payment by another
method.
• Documentation showing that the
Cardmember's other form of payment
was not related to the Disputed Charge, or
• Proof that the Cardmember provided
consent to use the Card as a valid form of
payment for the Disputed Charge, or
• Proof or an explanation that the other
form of payment is not valid or that the
Merchant did not receive payment from a
third party for the same goods or services,
or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
"No show" or
CARDeposit
canceled
The Cardmember
claims to have
canceled a lodging
reservation or a Credit
for a CARDeposit
Charge was not
received by the
Cardmember.
• Documentation that supports the validity
of the "no show" reservation or
CARDeposit Charge, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Reason What It Means
What You Can Provide To Appeal
The Chargeback
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Canceled recurring
billing
Cardmember claims to
have canceled or
attempted to cancel
Recurring Billing
Charges for goods or
services. Please
discontinue all future
billing for this
Recurring Billing
Charge.
• Proof that the Cardmember has not
canceled and continues to use the Service
or receives the Goods, and a copy of your
cancellation policy, an explanation of your
procedures for disclosing it to the
Cardmember, and details explaining how
the Cardmember did not follow the
cancellation policy, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Goods/services not
as described
The Cardmember
claims to have received
goods/services that
are different than the
written description
provided at the time of
the Charge.
• Proof refuting the Cardmember's claim
that the written description differs from
the goods/services received, or
• Proof that the Cardmember agreed to
accept the goods/services as provided, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed, or
• Proof that goods and services matched
what was described at time of purchase
(e.g., photographs, emails), or
• For Installment Payment Transactions,
provide a copy of your terms and
conditions agreed to by the Cardmember
and details explaining how the
Cardmember did not comply with the
terms and conditions.
For goods or services purchased by the
Cardmember that were received in a
damaged or defective state, the Merchant
must provide one or more of the following
items:
• Show that an attempt was made by the
Merchant to repair or replace damaged or
defective goods or to provide replacement
services.
• If returned, state how the Cardmember
did not comply with the Merchant's clearly
documented cancellation, return policy or
applicable law and regulations.
• Show that the Cardmember agreed to
accept the goods or services "as is."
Reason What It Means
What You Can Provide To Appeal
The Chargeback
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Goods/services
damaged or
defective
The Cardmember
claims to have received
damaged or defective
goods/services.
• Proof refuting the Cardmember's claim
that the goods/services were damaged or
defective (provided that, in the case of
goods, they were not returned to you), or
• Proof that an attempt was made to repair
or replace damaged or defective goods or
to provide replacement services, or
• Proof that the Cardmember did not
comply with your clearly documented
cancellation and return policies or
Applicable Law (provided that, in the case
of goods, they were returned to you), or
• Proof that the Cardmember agreed to
accept the goods as delivered, or
• Proof that the goods/services were not
returned to you, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed, or
• For Installment Payment Transactions,
provide a copy of your terms and
conditions agreed to by the Cardmember
and details explaining how the
Cardmember did not comply with the
terms and conditions.
Vehicle rental–
capital damages,
theft, or loss of use
The Cardmember
claims to have been
incorrectly billed for
capital damages, theft,
or loss of use.
• Proof that the Charge submitted was
within the specific estimate of the Capital
Damages agreed in writing by the
Cardmember, plus 15%.
• Proof refuting Cardmember's claim that
they were covered by the Merchant’s
insurance (i.e., rental agreement
evidencing Cardmember's waiver of
insurance or documentation that shows
the Cardmember purchased insurance
that was not sufficient to pay for the
Capital Damages).
• Proof that the Charge was valid and not for
theft or loss of use.
• Proof that the Cardmember agreed in
writing to accept liability for the Capital
Damages.
• Proof that a Credit which directly offsets
the Disputes Charge has already been
processed.
Reason What It Means
What You Can Provide To Appeal
The Chargeback
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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Fraud
Missing imprint The Cardmember
claims they did not
participate in this
Charge that was not
processed using
Magnetic Stripe or
Chip Card Data.
Note: Not applicable to
Card Not Present
Charges and Digital
Wallet Payments.
• Proof that this was a Card Not Present
Charge, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed, or
• Proof that the Card was present by
providing an imprinted Charge Record or
showing capture of the Magnetic Stripe.
Multiple ROCs The Cardmember
claims they
participated in one
valid Transaction with
your Establishment,
however, the
Cardmember denies
participation in the
additional and
subsequent
Transactions that were
submitted by you.
• Proof that each of the Transactions are
valid Charges, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
No Cardmember
authorization
The Cardmember
denies participation in
the Charge you
submitted and you
have failed to provide
proof that the
Cardmember
participated in the
Charge.
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed, or
• Proof that you received a valid
Authorization for the Charge.
Card Not Present The Cardmember
denies participation in
a mail order, telephone
order, or internet
Charge.
• Proof of Delivery to the Cardmember's
billing address, or
• Proof that you attempted to validate the
CID and you did not receive a response or
you received an “unchecked” response, or
• Proof that you validated the address via
Authorization and shipped goods to the
validated address, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed, or
• Submission of Compelling Evidence
(please contact your Merchant Services
Provider for additional information).
Reason What It Means
What You Can Provide To Appeal
The Chargeback
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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EMV Counterfeit The Cardmember
denies participation in
the Charge and a
counterfeit chip Card
was used at a POS
system where the
Transaction was not
processed as a chip
transaction because
either the POS system
was unable to process
a Chip Card or the
Transaction was
manually keyed.
Note: Not applicable
for contactless
Transactions and
Digital Wallet
payments.
• Proof that this was a Card Not Present
Charge,
• Proof that the POS system processed a
chip Card Transaction, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
EMV lost/stolen/
non-received
The Cardmember
denies participation in
the Charge and chip
Card with PIN
capabilities was lost/
stolen/non-received
and was used at a POS
system where the
transaction was not
processed as a chip
Card Transaction with
PIN validation because
either the POS system
is not an enabled chip-
and-PIN POS system,
or the Transaction was
manually keyed.
Note: Not applicable to
contactless
transactions and
Digital Wallet
payments, and
Charges that qualify
under the No PIN
Program.
• Proof that this was a Card Not Present
Charge,
• Proof that the POS system processed a
chip Card Transaction with PIN validated,
or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Reason What It Means
What You Can Provide To Appeal
The Chargeback
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Inquiry/Miscellaneous
Insufficient reply Complete support
and/or documentation
were not provided as
requested.
Proof that a Credit which directly offsets the
Disputed Charge has already been processed.
No reply We did not receive your
response to our Inquiry
within the specified
time frame.
• Proof you responded to the original
Inquiry within the specified time frame, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Chargeback
authorization
We have received your
authorization to
process Chargeback
for the Charge.
Proof that a Credit which directly offsets the
Disputed Charge has already been processed.
Processing Errors
Unassigned
Cardmember
Account Number
You have submitted a
Charge using an invalid
or otherwise incorrect
Card number.
Note: You may
resubmit the Charge to
us if you are able to
verify and provide the
correct Card number.
• Copy of the imprint that confirms Card
number, or
• Proof that you obtained an authorization
approval for such Card number, or
• Copy of the Charge Record from the
terminal that electronically read the Card
number, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Credit processed as
Charge
The Cardmember
claims the Charge you
submitted should have
been submitted as a
Credit.
• Proof that the Charge was submitted
correctly, or
• Proof that a Credit which directly offsets
the Charge has already been processed.
Charge processed
as Credit
The Cardmember
claims the Credit you
submitted should have
been submitted as a
Charge.
• Proof that the Credit was submitted
correctly, or
• Proof that a Charge that directly offsets
the Credit has already been processed.
Reason What It Means
What You Can Provide To Appeal
The Chargeback
This document contains sensitive, confidential and trade secret information, and must not be April 2024
disclosed to third parties without the express prior written consent of American Express.
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Chargebacks and Inquiries :: Compelling Evidence
11.5 Compelling Evidence
Compelling Evidence may be provided as support to demonstrate the Cardmember
participated in the Transaction, received goods or services, or benefited from the Transaction.
If American Express determines that the evidence satisfies the relevant section(s) of the
Compelling Evidence policy, the Issuer will review the Compelling Evidence with the
Cardmember prior making a decision on the Chargeback Reversal request. All available
information is expected to be provided, and to only submit Compelling Evidence when it is
strongly believed the Cardmember participated in the Transaction, received goods or services,
or authorized the Charge. Only Compelling Evidence that has been gathered in compliance with
Applicable Law may be relied upon. For a list of Compelling Evidence items, (see
Subsection 11.5.1, "
Compelling Evidence for Goods/Services Not Received or Only Partially
Received" and Subsection 11.5.2, "Compelling Evidence for Card Not Present Fraud".
Incorrect Charge
amount
The Charge amount
you submitted differs
from the amount the
Cardmember agreed to
pay.
• Proof that the Cardmember agreed to the
amount submitted, or
• Proof that the Cardmember was advised
of and agreed to pay for any additional or
delayed Charges using the Card the
Charge was submitted to, or
• Itemized contract/documentation
substantiating the Charge amount
submitted, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Late submission The Charge was not
submitted within the
required time frame.
• Proof the Charge was submitted within the
required time frame, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Duplicate Charge The individual Charge
was submitted more
than once.
• Documentation showing that each Charge
is valid, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Non-matching Card
number
The Card number in
the submission does
not match the Card
number in the original
Charge.
• Copy of the Card imprint confirming the
Card number, or
• Copy of the Charge Record from the
terminal that electronically read the Card
number, or
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Currency
discrepancy
The Charge was
incurred in an invalid
currency.
• Proof that a Credit which directly offsets
the Disputed Charge has already been
processed.
Reason What It Means
What You Can Provide To Appeal
The Chargeback
If Compelling Evidence is
provided, we will validate the
support (e.g., name and
address supplied for the
Cardmember matches the
Issuer's records, confirm that
previous Transactions were
not disputed).
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Chargebacks and Inquiries :: Compelling Evidence
11.5.1 Compelling Evidence for Goods/Services Not Received or Only
Partially Received
Table 11-2: Compelling Evidence for Goods/Services Not Received or Only Partially Received
11.5.2 Compelling Evidence for Card Not Present Fraud
Table 11-3: Compelling Evidence for Card Not Present Fraud
Item #
Allowable Compelling Evidence for Goods/Services Not
Received or Only Partially Received; Chargeback Reversal
request must include one (1) of the following items:
1. For Transactions involving goods or services, evidence to prove that there is a link
between the person who received the goods or services and the Cardmember
(e.g., photographs, emails), or
2. For Card Not Present Transactions where the goods are picked up at the Program
Merchant’s location:
• The Program Merchant must provide the Cardmember or authorized third
party signature on the pickup form as well as additional proof to demonstrate
that the identity of the Cardmember or authorized third party was verified at
the time of pickup
Or,
3. For E-commerce Transactions representing the sale of Digital Goods or Services
downloaded from a Program Merchant's website or application or accessed
online, one (1) of the following must be provided:
• Proof that the Cardmember's IP address at the time of purchase matches the
IP address where the digital goods were downloaded, or
• Proof the Cardmember's email address provided at the time of purchase
matches the email address used to deliver the digital goods, or
• Proof that the Program Merchant's website was accessed by the Cardmember
for Digital Goods or Services after the Transaction Date.
Note: In addition to the above, one (1) of the following may also be provided:
• Description of the digital goods, or
• Date and time the digital goods were downloaded or accessed.
Item #
Allowable Compelling Evidence for Card Not Present Fraud
Chargeback Reversal request must include one (1) of the
following items:
1. For Transactions involving the shipment of goods or services, proof that the
Transaction contains a shipping address that matches a previously used shipping
address from an undisputed Transaction, or
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2. For E-commerce Transactions involving the sale of Digital Goods or Services,
provide all of the following:
a. Cardmember name linked to the account with the Program Merchant, and
b. Description of the good or services and the date/time they were purchased
and downloaded, accessed, or provided to the Cardmember, and
c. Proof that the device and Card used for the disputed Transaction was used in
a previous Transaction that was not disputed and the following information is
currently linked to the Cardmember account with the Program Merchant:
i. Device ID
ii. IP address and geographical location
iii. Device name (if available), and
In addition, provide three (3) or more of the following:
• Proof that the Program Merchant validated the Card and the Cardmember
prior to or at the time of purchase and received an AAV (Automated Address
Verification) response of “Y” or CSC (Card Security Code) response of “Y”.
• Proof that the customer account with the Program Merchant was accessed by
the Cardmember and successfully verified by the Program Merchant on or
before the Transaction date.
• Proof that the Cardmember password or CDCVM was captured by the
Program Merchant in order to complete the Transaction.
• Phone number and/or email address linked to the customer profile held by the
Program Merchant.
Or,
3. For Recurring Billing Transactions, initiated on the Program Merchant’s website,
all of the following must be provided:
a. Proof of a legally binding contract held between the Program Merchant and
the Cardmember, and
b. Proof the Cardmember accessed the Program Merchant’s website or
application to establish services on or before the Transaction date, and
c. Proof the Cardmember received the goods or services, and
d. Proof of a previous Transaction that was not disputed
Or,
Item #
Allowable Compelling Evidence for Card Not Present Fraud
Chargeback Reversal request must include one (1) of the
following items:
E-commerce Merchants must
adhere to policy noted in Item
three (3) rather than attempting
to provide incomplete evidence
such as usage details or billing
authorization.
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Chargebacks and Inquiries :: Inquiry Reasons
11.6 Inquiry Reasons
You’ll receive an Inquiry notification if a Cardmember disputes a Charge from your business
and we cannot resolve it using the documents we have on file. This is the full list of Inquiry
reasons paired with suggestions for what kinds of documents you should submit to help avoid a
Chargeback. To help avoid a "No reply" or "Insufficient reply" Chargeback, respond within the
time frame provided by your Merchant Services Provider with the suggested documents.
Table 11-4: Inquiry Reasons
4. For Transactions involving the sale of website search and/or advertising services
to promote consumer products or services, all of the following must be provided:
a. Proof of a legally binding contract held between the Program Merchant and
the Cardmember, and
b. Details of the initial ad-service setup, including at least two (2) of the following
items:
i. Purchaser's IP address and geographical location at the date and time of
the initial ad-service setup
ii. Email address of purchaser
iii. Company name or purchaser name, and
c. Proof the Cardmember has accessed the Program Merchant’s website to
establish services on or before the Transaction date, and
d. Proof that the device and Card used for the disputed Transaction was used in
a previous Transaction that was not disputed. In addition, provide the
following information that are currently linked to the Cardmember account
with the Program Merchant:
i. Device ID
ii. IP address and geographical location
iii. Device name (if available)
e. Proof that the Cardmember received the goods or services, and
f. Description of the goods or services and the date they were provided.
Item #
Allowable Compelling Evidence for Card Not Present Fraud
Chargeback Reversal request must include one (1) of the
following items:
"Item four (4)" only applies to
Merchants in the following
Merchant categories: Dating
Service and E-commerce
Merchants.
What It Means What You Can Do
The Cardmember has requested the delivery
of an item(s) or service(s) that was ordered but
not received.
Please provide the service, ship the order, or
provide Proof of Delivery and/or services
rendered.
The Cardmember claims the item(s)/
service(s) was canceled/expired, or the
Cardmember has been unsuccessful in an
attempt to cancel the item(s)/service(s).
Please issue a credit, or provide a copy of
your cancellation policy or, if applicable,
contract approved in writing by the
Cardmember and discontinue future billings.
The Cardmember claims the order arrived
damaged or defective and requests return
authorization.
If a return is not permitted, please provide a
copy of your return or refund policy.
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The Cardmember has requested the repair or
replacement of an order that was damaged or
defective.
Please provide return instructions and make
the appropriate repairs, or provide a copy of
your return/replacement policy and explain
why the order cannot be repaired/replaced.
The Cardmember claims the referenced
charge should have been submitted as a credit.
Please issue a credit, or provide support and
itemization for the charge and an
explanation of why credit is not due.
The Cardmember has requested replacement
for an item(s)/service(s) that was not as your
business described, or credit for the item(s)/
service(s) as the Cardmember is dissatisfied
with the quality.
Please replace the item or issue credit for the
item(s)/service(s), or proof that a credit has
been issued.
The Cardmember does not recognize the
charge.
Please provide support and itemization. In
addition, if the charge relates to items that
were shipped, please include Proof of
Delivery with the full delivery address. If this
documentation is not available, please issue
a credit.
The Cardmember claims the item(s)/
service(s) was canceled and/or refused.
Please issue a credit, or provide Proof of
Delivery, proof that the Cardmember was
made aware of your cancellation policy and
explain why credit is not due.
The Cardmember has requested credit for an
item(s)/service(s) that was not received.
Please issue a credit, or provide Proof of
Delivery or a copy of the purchase
agreement, approved in writing by the
Cardmember, indicating the cancellation
policy and explain why credit is not due.
The Cardmember has requested credit for an
item(s) that was returned to your business.
Please issue a credit, or provide a copy of
your return policy and explain why credit is
not due.
The Cardmember has requested credit for a
duplicate billing.
Please issue a credit, or provide support and
itemization of both charges and explain why
credit is not due.
The Cardmember claims that a credit was
expected but has not appeared on their
account.
Please issue a credit, or provide support for
the charge and explain why credit is not due.
The Cardmember does not recognize the
referenced Card Not Present charge(s).
Please issue a credit, or provide support and
itemization and explain why credit is not due.
What It Means What You Can Do
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Chargebacks and Inquiries :: How We Chargeback
11.7 How We Chargeback
We may Chargeback by (i) deducting, withholding, recouping from, or otherwise offsetting
against our payment to your Merchant Services Provider for a Charge you submitted; or (ii)
reversing a Charge for which we have not paid you. Our failure to demand payment does not
waive our Chargeback rights.
Your Merchant Services Provider may have additional rights and remedies with respect to
Disputed Charges. Please contact your Merchant Services Provide for more information on
their Chargeback procedures.
11.8 Tips for Avoiding Chargebacks
Inquiries can be expensive and time consuming for all parties involved. Follow these general
steps and you may avoid unnecessary Inquiries and Chargebacks:
• Keep track of all Charge Records.
• Issue Credits immediately after determining that a Credit is due.
The Cardmember claims the referenced
charge is fraudulent.
For a Card Present charge, provide a copy of
the charge record and an imprint of the Card,
if available. For a Card Not Present charge,
provide a copy of the charge record (or
substitute charge record), any contracts or
other details associated with the purchase,
and Proof of Delivery (when applicable) with
the Cardmember's complete and valid billing
address (street number, name, city, state,
and zip code).
The Cardmember claims the charge amount
you submitted differs from the amount the
Cardmember agreed to pay.
Please issue a credit or explain why credit is
not due.
The Cardmember claims this charge was paid
for by another form of payment.
Please issue a credit, or provide proof that
the Cardmember's payment by other means
was not related to the disputed charge or
that you have no record of the
Cardmember's other payment.
The Cardmember is not disputing the
charge(s), but is requesting support and
itemization.
Please provide the requested
documentation.
The Cardmember has questioned the Charge
for damages / theft or loss.
Please issue a credit or provide a copy of the
following documentation: itemized rental
agreement, itemized documentation to
support the Charge, proof that the
Cardmember agreed in writing to accept
responsibility for the Charge, and proof that
the Cardmember agreed in writing to select
American Express as the payment method
for the Charge.
What It Means What You Can Do
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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• Disclose all terms and conditions of your sale/return/exchange/cancellation policies at the
point of sale, on all Charge Records and customer receipts, and on your website.
• Contact your Merchant Services Provider to make sure the name that you provide in your
Submission matches your business name.
• Submit Charges only after goods have been shipped or services have been provided.
• Advise Cardmembers when goods or services will be delivered or completed, and always
advise the Cardmember of any delays.
• Obtain a Cardmember's agreement in writing whenever completing a service or work
order.
• Encourage Cardmembers at the point of sale to contact your business directly should
there be any problems with their purchase. Include your telephone number or web address
and an appropriate description of goods or services purchased in your Submission.
• Inform Cardmembers of your business name that will appear on their billing statement.
• Provide a cancellation number when applicable.
• Remind the Cardmember to retain any documents you have provided, along with shipping
information when applicable.
12
Specific Industries 12
12.1 Introduction
12.2 Auto Dealers
12.3 Business-to-Business (B2B)/ Wholesale Distribution
12.4 Charitable Donations
12.5 E-Commerce Businesses
12.6 Government/Utilities/Education
12.7 Installment Payment Transactions
12.8 Insurance
12.9 Internet/Online Pharmacies
12.10 Oil/Petroleum
12.11 Online/Mail Order Tobacco Retail
12.12 Rental Establishments
12.13 Travel Industries
12.14 Transit Contactless Transactions
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12.1 Introduction
This chapter states additional policies and procedures applicable to Merchants classified in
specific industries. All other provisions and requirements of the Agreement apply to these
Merchants as well. To the extent possible, the provisions of this Chapter 12, "
Specific
Industries" and the other provisions of the Merchant Operating Guide shall be interpreted to
give each their full effect. However, if a conflict is deemed to exist between them, then the
provisions of this Chapter 12, "
Specific Industries" shall govern.
12.2 Auto Dealers
This section applies to Merchants classified in an auto dealer industry.
The following requirements will apply to Charges for the down payment or the entire purchase
price of new and used motor vehicles.
You may accept the Card for down payment of a motor vehicle, subject to the following
provisions:
• You must not submit a Charge for the down payment price of a used motor vehicle unless
and until you have obtained the Cardmember's approval in writing on the agreement/bill of
sale setting forth the terms of the sale, including down payment price, and your
cancellation policy.
• In addition to other Chargeback rights, American Express also has Chargeback rights for
any portion of the Charge for the down payment price of a used motor vehicle which is
disputed by the Cardmember, if such Disputed Charge cannot be resolved in your favor
based upon unambiguous language contained in the written agreement/bill of sale.
• Should a Cardmember exercise their right to rescind the written agreement/bill of sale
during any rescission period set forth in the Cardmember's agreement with you or at law,
you shall submit a Credit to your Merchant Services Provider promptly.
• If you are classified as an auto dealer of used motor vehicles exclusively, the down payment
must not exceed 50% of the full purchase price of the motor vehicle.
• If the Cardmember denies making or authorizing the Charge, American Express will have
Chargeback rights for such Charge in addition to its other Chargeback rights.
You may also accept the Card for the entire purchase price of a new or used motor vehicle,
subject to the following provisions:
• You are classified as an auto dealer of new or new and used motor vehicles (i.e., your
dealership sells new motor vehicles exclusively or both new and used motor vehicles).
• The amount of the Charge does not exceed the total price of the motor vehicle after
deduction of applicable discounts, taxes, rebates, cash down payments, and trade-in
values.
• You must not submit a Charge for the entire purchase price of a new or used motor vehicle
unless and until you have a written agreement/bill of sale signed by the Cardmember
setting forth the terms of the sale, including purchase price, delivery date and your
cancellation policy.
• In addition to other Chargeback rights, American Express also has Chargeback rights for
any portion of the Charge for the entire purchase price of a new or used motor vehicle
which is disputed by the Cardmember, if such Disputed Charge cannot be resolved in your
favor based upon unambiguous language contained in the written agreement/bill of sale.
• Should a Cardmember exercise their right to rescind the written agreement/bill of sale
during any rescission period set forth in the Cardmember's agreement with you or at law,
you shall submit a Credit to your Merchant Services Provider promptly.
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• If the Cardmember denies making or authorizing the Charge and you have not transferred
title or physical possession of the motor vehicle to the Cardmember, American Express will
have Chargeback rights for such Charge in addition to its other Chargeback rights.
12.3 Business-to-Business (B2B)/ Wholesale Distribution
If you are classified in the business-to-business (B2B) or wholesale distribution industries, and
it is determined that you are not in the Telecommunications industry, then notwithstanding the
prohibition in Section 3.3, "
Prohibited Uses of the Card", you may accept the Card for overdue
amounts to the extent that acceptance of overdue amounts is a common practice in your
industry and does not constitute an attempt to obtain payment from the Cardmember whose
prior methods of payment have been difficult to collect or uncollectable. An indicator of such
difficulty, for example, may be the fact that you have sent an overdue customer account to
collections.
For the purposes of Section 6.5, "
Submission Requirements – Electronic", a Charge submitted
by your Establishments classified in the foregoing industries will be deemed "incurred" on the
date the Cardmember indicates to you that the Cardmember will pay for the goods or services
purchased with the Card, so long as:
• this is a common practice in your industry, and
• does not constitute an attempt to obtain payment from the Cardmember when prior
methods of payment have been difficult to collect or uncollectable.
Notwithstanding the restriction in Section 6.5, "
Submission Requirements – Electronic", you
must not submit any Charge until the goods have been shipped or services have been provided
to the Cardmember. To the extent that you have clearly disclosed your intentions to the
Cardmember and the Cardmember agrees, then you may submit the following types of
Charges to your Merchant Services Provider before you ship the goods to the Cardmember:
• Charges representing deposits on custom and special orders (so long as you comply with
Applicable Law) or goods not in inventory at the time the order is placed.
• Charges representing advance, partial, or full payment for goods that the Cardmember
requests you to ship at a later date.
12.4 Charitable Donations
If it is determined that you are a non-profit organization incorporated or registered under
Applicable Law, and recognized as an Entity qualifying for tax exemption under Section
501(c)(3) of the U.S. Internal Revenue Service Code (Code), then:
• You must provide your Merchant Services Provider, on request, documentation of such tax
exempt status.
• You may accept the Card for charitable donations that:
are tax deductible or creditable to the payor as a charitable donation under the Code,
or
include the receipt of an item or service of value (such as a meal or admission to an
event or other incentive) where at least a portion of the amount is tax-deductible or
creditable to the payor as a charitable donation under the Code.
12.5 E-Commerce Businesses
If you are operating a website or e-commerce business, you must include the following website
information display requirements on your website:
• An accurate description of the goods/services offered, including the currency type for the
Transaction. Transaction currency must be in U.S. Dollars.
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• Your physical address in the United States Region.
• An email address and a telephone number for customer service disputes.
• Return/refund policy.
• A description of your delivery policy (e.g., No COD, No overnight).
• A description of your security practices (e.g., information highlighting security practices
you use to secure Transactions on your systems, including Transactions conducted on the
Internet).
• A statement of known export restrictions, tariffs, and any other regulations.
A privacy statement regarding the type of personal information collected and how the
information is used. Additionally, you must provide to customers the option to decline being
included in marketing campaigns or having their personal information included on lists sold to
third parties.
12.6 Government/Utilities/Education
This section applies to Merchants classified in the government, utilities, or certain education
industries (i.e. higher education, private school–kindergarten to grade 12).
Customers should feel free to use all forms of payment that you accept without being penalized
for choosing a particular form of payment. To promote consumer choice, you are generally
prohibited from imposing any restrictions, conditions, or disadvantages when the Card is
accepted that are not imposed equally on all Other Payment Products. See Section 3.2,
"Treatment of the American Express Brand".
You must not impose a higher convenience fee, whether in the form of a flat fee or as a
percentage of the final Transaction amount, on Charges than you impose on Other Payment
Products, except for automated clearing house funds transfers, cash, and checks. American
Express views discrimination against Cardmembers as a breach of the Agreement.
If you are classified in the government, utilities, or education sectors, you may assess
convenience fees on Charges, provided that they comply with the other requirements of this
section.
You must clearly disclose the amount of convenience fees to the customer, which may include
itemization on the customer receipt, invoice, or confirmation email, and give the customer the
opportunity to cancel the Charge if the customer does not want to pay the convenience fee.
Any explanation, verbal or written, describing why the convenience fee is being assessed or
how it is calculated, must characterize the convenience fee as an assessment to cover your
administrative costs, and not as an assessment to cover your cost of accepting the Card.
Your Merchant Services Provider can only assess a convenience fee when it accepts the Card
for the foregoing Charges in compliance with the requirements of this section.
12.7 Installment Payment Transactions
Installment Payment Transactions (also known as Buy Now Pay Later) must comply with the
following:
• Do not charge the Cardmember interest or finance charges, other than late payment fees.
• Disclose all material terms of the installment agreement to the Cardmember including, but
not limited to, the amount, and frequency of the installment, and any late payment fees.
• Provide Transaction details to Cardmembers via mobile application or website about each
installment Transaction, including:
• Description of each individual purchase, including the name of the End Beneficiary
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• Date and amount of each individual purchase
• Date and amount of each installment charge for that individual purchase
• Number of installments paid by the Cardmember and number of installments
remaining in the series (e.g., "1 of 4")
• In addition to prohibited industries set forth in Section 10.2, "
Prohibited Merchants". We
may modify these excluded industries at any time at our sole discretion and (without
waiving or limiting our other rights and remedies) we may exercise Chargebacks, suspend
acceptance of Cards and/or terminate the Agreement if you breach this requirement.
• You must have a direct contract with the End Beneficiary except in the limited
circumstance where a third-party acts as your agent to facilitate payments to your End
Beneficiaries in which circumstance the following requirements apply:
• You must have a direct contract with your third-party agent.
• You or the third-party agent acting on your behalf must provide End Beneficiary data
elements in accordance with the Technical Specifications. You remain responsible and
otherwise liable for your third-party agent's compliance with this requirement and any
omission or failure to perform does not relieve you of your obligations to comply with
the requirements in this section.
• Notwithstanding the foregoing we reserve the right to revoke this exception at any
time at our sole discretion.
• Submit an Authorization request for each individual Installment Transaction at the time
the installment is due, for the amount of the installment, not the full purchase amount.
• If there is a Chargeback or Disputed Charge in connection to an installment Transaction
you must not submit an Authorization request nor submit any further related installment
Transactions for payment until the Chargeback or Disputed Charge is resolved in your
favor.
• Facilitate payments only to End Beneficiaries that:
• are located in the United States, Puerto Rico, the U.S.Virgin Islands, or other U.S.
territories and possessions,
• transact in U.S. Dollars only and to which you facilitate payments solely to U.S. Bank
Accounts.
Note: Installment Payment Transactions are not Recurring Billing Transactions.
Table 12-1: MCC Codes and Descriptions
MCC Description
8099 Medical Services and Health Practitioners – Not Elsewhere Classified
7280, 8062 Hospitals and Private Hospitals
5976 Orthopedic Goods and Prosthetic Devices
8050 Nursing and Personal Care Facilities
4119 Ambulance Services
0742 Veterinary Services
8071 Medical Dental Laboratories
5122 Drugs, Drug Proprietaries, and Druggists' Sundries
4722 Travel Agencies and Tour Operators
7997 Lifetime Memberships
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12.8 Insurance
This section contains provisions specific to Merchants classified in the insurance industry.
American Express undertakes no responsibility on your behalf for the collection or timely
remittance of premiums. American Express will not be subject to any liability, under any
circumstances, for any claim arising from, or related to, any insurance policy you issued. You
must indemnify, defend, and hold harmless American Express and its Affiliates, successors,
assigns, and Issuers, from and against all damages, liabilities, losses, costs, and expenses,
including legal fees, to Cardmembers (or former Cardmembers) arising or alleged to have
arisen from your termination or other action regarding their insurance coverage; breach,
negligent or wrongful act or omission; failure to perform under the Agreement; or failure in the
provision of your or their goods or services.
If the Card is accepted as payment for fixed rate cash value life insurance policies or fixed rate
annuities under the Agreement, you represent and warrant that the fixed rate cash value life
insurance policies and fixed rate annuities for which the Card will be accepted for premium
payments are not securities requiring registration under the Securities Act of 1933, and, in
addition to your other indemnification obligations to American Express, you must further
indemnify, defend, and hold harmless American Express and American Express’ Affiliates,
successors, assigns and Issuers from and against all damages, liabilities, losses, costs, and
expenses, including legal fees, arising or alleged to have arisen from you or your Agencies
breach of this representation and warranty.
12.9 Internet/Online Pharmacies
If you are classified or it is otherwise determined that you are an internet/online pharmacy
Merchant that accepts the Card for sales of prescription medications (as defined by Applicable
Law) in the Card Not Present environment:
• You must be certified by the Verified Internet Pharmacy Practice Sites program of the
National Association of Boards of Pharmacy (www.nabp.net
), or
5968 Long-term Subscriptions
4814 Telecommunications Services
4900 Utilities
6513 Real Estate Agents and Managers - Rentals
5813 Nightclubs
6300, 6381, 6399 Insurance
6010, 6011 Cash-like transactions
6538 P2P Payments
9222 Fines
9311 Tax Payments
MCC Description
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• You or your authorized representative must attest that you comply with the licensing and
inspection requirements of (i) federal, state, and/or provincial laws and the jurisdiction in
which you are located and (ii) each jurisdiction to which you dispense pharmaceuticals.
Upon request, you or your Merchant Services Provider must promptly provide documentation
that you fulfill the foregoing requirements. Failure to provide this documentation promptly may
result in the cancellation or disentitlement of Card acceptance privileges.
Specific procedures exist for Transaction processing by internet/online Merchants. These
procedures appear in Section 4.3, "Card Not Present Charges"
.
12.10 Oil/Petroleum
In some countries, additional policies and procedures are applicable to Merchants classified in
the oil/petroleum industry.
For information about CATs, see Subsection 4.2.2, "Unattended Terminals"
.
If you are classified in the oil and petroleum industry, your Merchant Services Provider may
place you in the Fraud Full Recourse Program if you accept Charges originating at a CAT gas
pump. For information about Customer Activated Terminals, see Section 4.2.2, "Unattended
Terminals".
12.10.1 Requirements
You must:
• Obtain a unique Merchant Number from your Merchant Services Provider for your CAT gas
pump sales. If you conduct any other business at your Establishment (e.g., convenience
store sales, car washing services), you must obtain a unique Merchant Number for those
lines of your business.
• Submit dealer location data along with each Authorization request and each Submission
file. Dealer location data consists of your business:
dealer number (store number)
name
street address
city
postal code
12.10.2 Recommendations
American Express has implemented several policies and fraud prevention tools to assist in
combating fraud at the gasoline pump. Work with your Merchant Services Provider for
additional information on these policies and to determine which fraud prevention tools are
supported.
American Express recommends that you:
• Set a pre-Authorization request at your CAT based on a good faith estimate of the final
charge amount.
• For higher Charges such as diesel, adjust the pre-Authorization amount to accommodate
the higher Charges.
• Set your CAT gas pumps to shut off when they reach the pre-Authorization amount.
• Request a separate Authorization for purchases that exceed the original pre-Authorization
amount.
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12.11 Online/Mail Order Tobacco Retail
If you are classified or it is otherwise determined that you are an online or mail order (or both)
tobacco or e-cigarette Merchant, then you must provide the website address of the online store
from which you sell your tobacco products. If your website facilitates tobacco sales, you may be
required on request to provide an executed and notarized Affidavit of Compliance with Laws -
Online/Mail Order Tobacco. Failure to provide this documentation promptly may result in the
cancellation or disentitlement of Card acceptance privileges. American Express may monitor
your website. Contact your Merchant Services Provider for additional information.
12.12 Rental Establishments
This section applies to Merchants classified in the Rental Establishments industries.
Customers should feel free to use all forms of payment that you accept without being penalized
for choosing a particular form of payment. To promote consumer choice, Merchants are
generally prohibited from imposing any restrictions, conditions, or disadvantages when the
Card is accepted that are not imposed equally on all Other Payment Products. See Section 3.2,
"Treatment of the American Express Brand". You must not impose a higher convenience fee,
whether in the form of a flat fee or as a percentage of the final Transaction amount, on Charges
than you impose on Other Payment Products, except for automated clearing house funds
transfers, cash, and checks.
If you are classified as a Rental Establishment, you may assess convenience fees on Charges,
provided that you comply with the other requirements of Chapter 4, "Transaction Processing"
and this section, as follows:
• You must clearly disclose the amount of convenience fees to the customer, which may
include itemization on the customer receipt, invoice, or confirmation email, and give the
customer the opportunity to cancel the Charge if the customer does not want to pay the
convenience fee.
• Any explanation, verbal or written, describing why the convenience fee is being assessed,
or how it is calculated, must characterize the convenience fee as an assessment to cover
your administrative costs and not as an assessment to cover your cost of accepting the
Card.
Your Merchant Services Provider can only assess a convenience fee when it accepts the Card
for Charges in compliance with the requirements of this section.
12.13 Travel Industries
Additional policies and procedures are applicable to Merchants classified in the lodging and
vehicle rental industries. In addition, the Assured Reservations Program is available to
Merchants in the lodging, trailer park/campground, vehicle, aircraft, bicycle, boat, equipment,
motor home, and motorcycle rentals (see Subsection 12.13.3, "
Assured Reservations").
12.13.1 Lodging
This section applies to Merchants classified in the lodging industry. The Assured Reservations
and CARDeposit
®
programs allow certain Charges to be submitted that would otherwise not be
allowed by American Express.
12.13.1.1 Assured Reservations — Lodging
Assured Reservations means a Cardmember's accommodation is guaranteed by you to be held
until the published check-out time on the date following the scheduled arrival date, as indicated
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by the Cardmember when making the Assured Reservation. You must honor Assured
Reservations.
Lodging Merchants may submit "no show" charges, if they comply with the provisions of the
Assured Reservations Program and the Cardmember does not use or cancel the reservation in
accordance with program requirements.
Your Assured Reservations Program responsibilities include the following:
• When accepting an Assured Reservation, you must advise the Cardmember that, if the
Cardmember does not claim the Assured Reservation, or cancel it within the time specified
in your stated reservation policy, the Cardmember may be charged for one (1) night's
lodging plus applicable taxes. If the Cardmember does not claim the Assured Reservation
or cancel in accordance with your stated reservation policy, you may bill the Cardmember
for a "no show" Charge.
• If the Cardmember cancels an Assured Reservation, you must provide a cancellation
number to the Cardmember and maintain a record of the cancellation number.
• Use the proper "no show" indicator, when submitting a "no show" Charge. If you are unsure
of how to transmit using this code, contact your Merchant Services Provider.
If you do not honor the Assured Reservations Program requirements your obligation to the
Cardmember is the following:
• Pay for one (1) night's accommodation at a comparable property, located nearby.
• Pay for transportation to the alternate location.
• Pay for a three (3)-minute telephone call.
• Use good faith efforts to forward all communications to the Cardmember at the alternate
location.
Failure to meet the previously-mentioned obligations may result in a Chargeback if the
Cardmember disputes a "no show" Charge.
If American Express receives disproportionate numbers of Disputed "no show" Charges, you
must work with your Merchant Services Provider to reduce the number of disputes. If such
efforts fail to reduce the number of disputes, you may be placed in a Chargeback program.
12.13.1.2 CARDeposit Program
As a lodging Merchant, if you require room deposits, you must participate in the CARDeposit
program. You must accept the Card for payment of CARDeposits. Your CARDeposit program
responsibilities include the following:
• Follow all requirements for an Advance Payment Charge, as described in Section 4.4.1,
"Advance Payment".
• Upon arrival, the Cardmember must show the Card. If the Cardmember does not have the
Card, other identification must be shown.
• Ensure the Charge Record contains the words "CARDeposit" on the Cardmember
signature line or, for Charge Records submitted electronically, the appropriate indicator on
the Charge Data. If you are unsure of how to submit the Charge using the appropriate
indicator, contact your Merchant Services Provider.
CARDeposit Program
A program that permits
Cardmembers to charge the
payment of an Advance
Payment Charge to their Cards
when a deposit is required.
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Table 12-2: CARDeposit Program Procedures
12.13.1.3 Emergency Check-in
If a Cardmember whose Card is lost or stolen requests check-in, you must call your Merchant
Services Provider, request "Authorization for an Emergency Check-in," and follow the
instructions.
12.13.2 Vehicle Rentals
This section applies to Merchants classified in the vehicle rental industry. When Cardmembers
opt to pay for vehicle rentals (not to exceed four (4) consecutive months) on the Card, you
must comply with these procedures.
12.13.2.1 Prepayment on Vehicle Rentals
If you permit Cardmembers to make Charges with the Card for vehicle rentals where
Cardmembers elect to prepay for a vehicle rental over the phone, at the counter, and via your
company websites (not on any other third-party reservation system) (Prepaid Rental), you
must:
• Follow all requirements for an Advance Payment Charge, as described in Section 4.4.1,
"Advance Payment".
• Ensure that your vehicle rental contract with the Cardmember contains the terms and
conditions of said reservation and cancellation policies.
12.13.2.2 Assured Reservations — Vehicle Rentals
Assured Reservations means a Cardmember's reservation is guaranteed by you to be held until
the vehicle return time, as indicated by the Cardmember when making the Assured
Reservation. You must honor Assured Reservations.
If Then
The CARDeposit is
canceled
You must send a written cancellation notice showing the
cancellation number to the Cardmember within three (3) business
days from the date of such cancellation. If a refund is due,
pursuant to your advance deposit cancellation policy, you must
include the appropriate indicator or submit a Credit form with the
words "CARDeposit Cancellation" on the Cardmember signature
line. If you are unsure of how to submit using the appropriate
indicator, contact your Merchant Services Provider.
An arrival date of a
CARDeposit is changed
You must send the Cardmember a written confirmation of the
change within three (3) business days from the date the
reservation was changed.
You are unable to honor a
CARDeposit that was not
previously canceled
Your obligation to the Cardmember includes the following:
• You must issue a Credit for the CARDeposit.
• You must pay for accommodations at a comparable location
nearby, until the duration of the original reservation expires (up
to fourteen (14) nights) or until accommodations become
available at the original location, whichever occurs first.
• You must provide transportation to and from the alternate
location once a day until the original accommodations are
available.
• You must pay for one, three (3)-minute call to advise of the
move to the alternate location, and one, three (3)-minute call
to advise of the return to the original location.
CARDeposit Program
A program that permits
Cardmembers to charge the
payment of an Advance
Payment Charge to their Cards
when a deposit is required.
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Vehicle Rental Merchants may submit "no show" charges, if they comply with the provisions of
the Assured Reservations Program and the Cardmember does not use or cancel the
reservation in accordance with program requirements. See Subsection 12.13.3, "
Assured
Reservations" for details.
12.13.2.3 Capital Damages
If a Cardmember voluntarily opts to use the Card to pay for property damage to a rented
vehicle (Capital Damages), you may accept the Card, provided you have complied with all of the
following conditions for payments of such items:
• The Card was used for the vehicle rental at the time the vehicle was checked out.
• You must provide in writing, to the Cardmember, an itemized list and description of specific
damages which have occurred.
• Prior to submitting a Charge, you must obtain the Cardmember's agreement in writing* to:
Accept responsibility for the Capital Damages, and
Select American Express as the payment method for the Capital Damages, and
Accept the total estimated amount for which the Cardmember may be responsible,
and that the final billed amount can be up to 15% more than the estimated amount.
No amounts in excess of 115% of the disclosed amount shall be charged to the
Cardmember's Card, without the express prior written consent of the Cardmember.
* The Cardmember’s acknowledgment must be made after the damages have occurred
and without any threat or duress.
• You must obtain Authorization for the amount of the Capital Damages each time a Capital
Damages Charge is submitted.
• On each occasion the Cardmember has chosen to use the Card for Capital Damages, you
must prepare a Charge Record separate from the Charge Record for the rental. You must
adhere to all requirements outlined in Chapter 4, "Transaction Processing"
for the
completion of the Charge Record. In addition, you must observe the following:
After the exact amount of the Capital Damages has been determined and the Charge
is ready for Submission, you must provide the Cardmember with an itemized notice of
damages; insert the amount of the Capital Damages on the Charge Record (in no
event in excess of the estimated amount plus 15% agreed to by the Cardmember in
writing).
For Charge Records submitted on paper or by other non-electronic means, you must
write "Capital Damages" on the signature line; for electronic Submission you must
provide the indicator. For instructions on how to provide the indicator, contact your
Merchant Services Provider.
In addition to the other Chargeback rights contained in the Agreement, American
Express may exercise its Chargeback rights with respect to any Charge for Capital
Damages which is not submitted in accordance with all the procedures contained
within the Agreement, including the provisions of this Subsection 12.13.2.3, "
Capital
Damages".
You must never include the following in an Authorization Request or in a Charge Submission:
• Losses due to theft of the vehicle, or
• Loss of revenue incurred by you due to loss of use of the rental vehicle in question.
12.13.2.4 Capital Damages to Rental Vehicles – Documentation
You must comply with requests from the Cardmember or the Cardmember’s insurance
adjustor to supply documentation related to the capital loss incident, if applicable.
Merchants should provide the
Cardmember with written
documentation containing all of
the Capital Damages details
(e.g., incident report, damage
estimate, photographs of the
damages) when the Charge is
submitted.
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12.13.3 Assured Reservations
Assured Reservations means:
• For accommodation reservations (including hotel and trailer park/campground): a
Cardmember's accommodation is guaranteed by you to be held until the published check-
out time on the date following the scheduled arrival date, as indicated by the Cardmember
when making the Assured Reservation.
• For vehicle, aircraft, bicycle, boat, equipment, motor home, and motorcycle rentals: a
Cardmember's reservation is guaranteed by you to be held until the return time, as
indicated by the Cardmember when making the Assured Reservation.
You must honor Assured Reservations. You may submit "no show" Charges, if you comply with
the provisions of the Assured Reservations Program and the Cardmember does not use or
cancel the reservation in accordance with program requirements.
Your Assured Reservations Program responsibilities include the following:
• When accepting an Assured Reservation, you must advise the Cardmember that, if the
Cardmember does not claim the Assured Reservation, or cancel it within the time specified
in your stated reservation policy, you may bill the Cardmember for a "no show" Charge as
follows:
For accommodation reservations (including hotel and trailer park/campground): one
(1) night's accommodation plus applicable taxes.
For vehicle, aircraft, bicycle, boat, equipment, motor home, and motorcycle rentals:
one (1) day’s rental or the daily/hourly incremental equivalent of the rental rate agreed
upon in the rental agreement, plus applicable taxes.
• If the Cardmember cancels an Assured Reservation, you must provide a cancellation
number to the Cardmember and maintain a record of the cancellation number.
• Use the proper "no show" indicator, when submitting a "no show" Charge. If you are unsure
of how to transmit using this code, contact your Merchant Services Provider.
If you do not honor the Assured Reservation Program requirements, you must provide
comparable accommodations, and/or services, when reasonably available, at no additional
cost to the Cardmember, in accordance with the rental agreement. Merchants classified in the
Lodging industry are also subject to the requirements set forth in Subsection 12.13.1.1,
"Assured Reservations — Lodging".
Failure to satisfy the previously-mentioned obligations may result in a Chargeback if the
Cardmember disputes a "no show" Charge.
If a disproportionate numbers of Disputed "no show" Charges are received, you must work to
reduce the number of disputes. If such efforts fail to reduce the number of disputes, you may
be placed in a Chargeback program.
12.14 Transit Contactless Transactions
12.14.1 Card Acceptance Requirements for Transit Contactless Transactions
When accepting and processing Transit Contactless Transactions you must:
• Be classified in one of the following MCCs: 4111, 4112, 4131, 4784, 7523 and pass that MCC
in the Authorization and Submission
• Not accept the following Cards:
• expired Cards
• Cards within the specified BIN ranges provided by us
• Cards that are on the Deny List at the time the Cardmember attempts to access the
transit system
Assured Reservations Program
The Assured Reservation
Program allows Cardmembers
to contact a participating
property or rental agency to
make an Assured Reservation
and guarantee the reservation
by giving their American Express
Card. The Assured Reservation
Program is available to the
following industries: hotel, trailer
park/campground, vehicle,
aircraft, bicycle, boat,
equipment, motor home, and
motorcycle rentals.
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• Flag all requests for Authorization and Submission with a transit indicator and meet
additional transit technical requirements (see Section 2.4, "Compliance with the Technical
Specifications"). Contact your Merchant Services Provider for further information about
complying with these specifications.
12.14.2 Authorization and Submission Requirements
When accepting a Transit Contactless Transaction, you must obtain an Account Status Check
for a nominal amount or any amount up to the Chargeback Protection Threshold (as set forth in
Subsection 12.14.3, "
Transit Thresholds") or an Authorization. The following sets out how to
proceed based on the response you receive to the Account Status Check or Authorization.
Table 12-3: Contactless Transit Authorization and Submission Requirements
12.14.3 Transit Thresholds
Chargeback Protection Threshold is $15.
Authorization Time Period is 7 days.
Submission Frequency is seven (7) days.
Declined Authorization Protection is $6.
If Then
the Account Status
Check Authorization
is approved
Continue to accept taps and submit the Aggregated Transit Charge,
up to the Chargeback Protection Threshold, within the Authorization
Time Period (as set forth in Subsection 12.14.3, "
Transit Thresholds").
Authorizations for partial fares cannot be submitted.
If the Card is on the Deny List and an Account Status Check or an
Authorization is approved, remove the Card from the Deny List.
the Account Status
Check or
Authorization is
declined
You must place the Card on the Deny List. If the final fare amount is
less than or equal to the Declined Authorization Protection Threshold
(as defined in Subsection 12.14.3, "
Transit Thresholds"), submit the
Transaction.
If the final fare amount is greater than the Declined Authorization
Protection Threshold, you must not submit the Transaction. You may
request a new Authorization as outlined in Section 12.14.5, "
Transit
Debt Recovery".
Note: Authorizations for partial fares cannot be submitted. You must
not split a Transaction with the intent of avoiding a single
Authorization for the final fare amount.
the combined taps are
within the Chargeback
Protection Threshold
and Authorization
Time Period
You may submit the Transaction.
A new Account Status Check is required for future taps.
Note: You must submit the Transaction according to the Submission
Frequency (as set forth in Subsection 12.14.3, "
Transit Thresholds").
the combined taps
exceed the
Chargeback
Protection Threshold
or the Authorization
Time Period is
exceeded
You may be subject to the No Valid Authorization (A02) (ISO 4755)
Chargeback should you submit a Transaction for a value above the
Chargeback Protection Threshold.
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12.14.4 Transit Charge Information
You must ensure the Cardmember has access to the following information for a minimum of
120 days:
• Name associated with the Merchant Number
• Total Transaction amount
• Date of travel
• Start time of each individual journey, if available
• End time of each individual journey, if available
• Final Transaction date
12.14.5 Transit Debt Recovery
If an Authorization is declined, you may attempt to recover any outstanding debt, providing all
the following conditions are met:
• The value of the debt is greater than the Declined Authorization Protection Threshold.
• You obtain an approved Authorization for the full value of the debt owed.
• You do not attempt more than six (6) Authorizations after the initial Authorization was
declined.
• No more than thirty (30) days have elapsed since the initial Authorization was declined.
• You should adhere to the requirements in Section 4.4.5, "Merchant-Initiated"
, when
processing Merchant-Initiated Transactions for Debt Recovery.
12.14.6 Management of the Deny List
You must maintain a Deny List by adding or removing Card Numbers based on any new
Authorization approval or decline. You must not add a Card Number to the Deny List for any
reason other than in the exceptional circumstance where you reasonably suspect travel
irregularities associated with the use of the relevant Card. The Deny List must be updated at
least once daily. We recommend that you update the Deny List more frequently when possible.
When a Card is tapped, you must immediately check the Deny List and refuse entry to any
Cardmember when the Card Number of the Card used appears on the Deny List.
You must not submit Transit Contactless Transactions when the Card Number appears on the
Deny List at the time of submission attempt. A Card Number must be removed from the Deny
List if an Account Status Check or Authorization request is subsequently approved.
We may issue Chargebacks if you fail to comply with these requirements or the provisions of
this Section 12.14, "
Transit Contactless Transactions".
12.14.7 Pay-In-Advance Transit Passes
You may offer a pay-in-advance fare program, which allows Cardmembers to use their Card,
Contactless Card or Mobile Device to purchase, in advance of travel:
a. time-based, unlimited travel passes, which allow the Cardmember to use their Contactless
Card or Mobile Device to enter and/or use the transit system until the time limit for such
pass expires, or
b. passes are available for a defined value or defined number of trips, which allow the
Cardmember to use their Contactless Card or Mobile Device to enter and/or use the
transit system until the balance is used. Balances on these passes are reduced as the
Cardmember uses the transit system, either in terms of value or number of trips,
depending on the type of pass purchased.
If the Cardmember uses a Pay-In-Advance Transit pass, you must:
• Limit the system functions to account identification and fare validation only, and
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• Not process taps as Transit Contactless Transactions.
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Dispute Resolution :: Arbitration Agreement (as to Claims involving American Express)
13.1 Arbitration Agreement (as to Claims involving American Express)
We value our merchant relationships. In the event that you are not able to resolve any issue with
us or a third party that concerns or relates to any American Express Card transaction or any
issue regarding American Express Card acceptance or its network, including but not limited to
disputes that concern or relate to a Merchant Services Provider, this section explains how
Claims can be resolved through mediation, arbitration, or litigation. It includes an arbitration
provision. Your agreement to this Dispute Resolution provision does not preclude you from
bringing your concerns to the attention of any appropriate governmental agencies.
a. Notice of Claim
. Before you or we file a lawsuit or initiate a mediation or arbitration
regarding a Claim, you and we agree to send a written notice (Claim notice) to each party
against whom the Claim is asserted. This provides the parties an opportunity to resolve the
Claim informally or through mediation. The Claim notice by any party, including us, must
describe the nature and basis of the Claim and state the specific monetary amount of the
Claim, absent any interest, trebling, or similar additions, and/or any other relief demanded.
Your Claim notice to us must also include your name, your Merchant name, Merchant
address, Merchant d/b/a, Merchant mailing address (if different from your Merchant
address), Merchant phone number, Merchant Tax ID, your Merchant Number (MID) or your
Service Establishment 10-Digit Number (s) with American Express and be sent to our
notice address as follows: By mail at: American Express Travel Related Services Company,
Inc., P.O. Box 299051, Fort Lauderdale, FL 33329, Attn: Department 87; or by email at:
American.Express.Contract.Keying@aexp.com
.
b. Mediation
. In mediation, a neutral mediator helps parties resolve a Claim. The mediator
does not decide the Claim but helps parties reach a voluntary agreement to resolve the
Claim.
(i) Initiation of Mediation. Before beginning a mediation, you or we must first provide
the Claim notice described above and attempt to resolve the Claim in good faith
through informal negotiations. If the parties are unable to resolve the Claim through
informal negotiations within 60 days of receiving the Claim notice, you or we then
have 90 days to submit the Claim to JAMS (1-800-352-5267, www.jamsadr.com
) or
the American Arbitration Association (AAA) (1-800-778-7879, www.adr.org
) for
mediation, or to an alternative mediator mutually agreed upon in writing by you and
us.
(ii) Conduct of Mediation. You and we will cooperate in selecting a mediator from a
panel of neutrals and in scheduling the mediation proceedings. Both parties will
share equally the costs of any mediation proceedings but otherwise will be
responsible for their own legal costs and expenses. You and we shall both have a
business representative (either an employee or principal, the choice of whom
shall be at the producing party's discretion) attend any Mediation, whether in-
person or by remote videoconference.
(iii) Confidentiality/Tolling. All communications made for the purpose of, in the
course of, or pursuant to the mediation are confidential, and no evidence of any
such communication is admissible for any purpose or subject to discovery. From
the date you or we receive the Claim notice, all applicable statutes of limitations
and defenses based upon the passage of time are tolled for 180 days or until
termination of the mediation, whichever is earlier.
(iv) Effect. If neither party elects mediation within 90 days after the completion of the
60-day informal negotiation period, or the parties do not reach a resolution within a
period of 90 days from the first meeting of the parties in mediation, then either party
may elect to resolve the Claim by initiating a binding arbitration as set forth in
Section c
below.
c. Arbitration
. You or we may elect to resolve any Claim involving you, us or any third party,
including a Merchant Services Provider, by individual, binding arbitration. Claims will be
decided by a single neutral arbitrator except as provided below.
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If arbitration is chosen by either party, neither you nor we have the right to litigate that
Claim in court or have a jury trial on that Claim. Further, neither you nor we have the
right to participate in a representative capacity or as a member of any class pertaining
to any Claim subject to arbitration. Arbitration procedures are generally more limited
than the procedures that apply in court, and discovery is generally more limited. The
arbitrator's authority is limited to Claims between you and us alone, except that the
Merchant Services Provider may be added as a party at the election of either you or us.
Claims may not be joined or consolidated unless you and we agree in writing. An
arbitration award and any judgment confirming it only applies to the specific Claim(s)
arbitrated and cannot be used in any other arbitration or case except to enforce the
award for that Claim. Other rights you or we would have in court may also not be
available in arbitration. The arbitrator's decisions are as enforceable as any court
order and are subject to very limited review by a court. Except as set forth below, the
arbitrator's decision is final and binding.
(i) Initiation of Arbitration. Before beginning an arbitration, you or we must first
provide the Claim notice described above. Claims will be referred to either JAMS or
AAA, as selected by the party electing arbitration. Claims will be resolved pursuant to
this Arbitration provision and the selected organization's rules in effect when the
Claim is filed, except where those rules conflict with the Agreement (in which case
the Agreement shall govern). If we choose the organization, you may select the other
within 30 days after receiving notice of our selection. Contact JAMS or AAA to begin
an arbitration and for other information. Claims may be referred to another
arbitration organization if you and we agree in writing, or to an arbitrator appointed
pursuant to section 5 of the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (FAA). Any
arbitration hearing that requires the physical presence of the parties (as opposed to a
video appearance) shall take place in New York, New York, unless the parties agree in
writing to an alternate venue.
(ii) Limitations on Arbitration. If either party elects to resolve a Claim by arbitration,
that Claim will be arbitrated on an individual basis. There is no right or authority
for any Claim to be arbitrated on a class action basis or on bases involving any
Claim brought in a purported representative capacity on behalf of the general
public, other Merchants, or other persons similarly situated, including persons
alleging Claims arising from transactions involving Merchant Services Providers.
This prohibition is intended to, and does, preclude you from participating in any
action by any trade association or other organization against us. Disputes
brought by you or us against the other may not be joined or consolidated in
arbitration with Claims brought by or against any third party, unless agreed to in
writing by all parties, except that the Merchant Services Provider may be added
as a party at the election of either you or us. Notwithstanding any other provision
and without waiving the right to appeal such decision, if any portion of these
Limitations on Arbitration is deemed invalid or unenforceable, then the entire
Arbitration provision (other than this sentence) does not apply.
(iii) Previously Filed Claims/No Waiver. You or we may elect to arbitrate any Claim,
including one that concerns or relates to transactions involving a Merchant Services
Provider, that has been filed in court at any time before the earlier of the presentation
of evidence at trial has begun and final judgment being entered on the Claim. Either
you or we may choose to delay enforcing or to not exercise rights under this
arbitration provision, including the right to elect to arbitrate a Claim, without waiving
the right to exercise or enforce those rights on any other occasion. For the avoidance
of doubt, and without limiting its scope, this Section 13.1.c. iii
applies to any class-
action lawsuit relating to the "Honor All Cards," "non-discrimination," or "no steering"
provisions of the Merchant Operating Guide, or any similar provisions of any prior
Card acceptance agreement, that was filed against us prior to the date that the
Agreement is effective.
(iv) Arbitrator's Authority. The arbitrator has the power and authority to award any relief
that would have been available in court, including equitable relief (e.g., injunction,
specific performance) and, cumulative with all other remedies, shall grant specific
performance whenever possible. However, the arbitrator has no power or authority to
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alter the Agreement or any of its separate provisions, including this Section 13, nor to
determine any matter or make any award except as provided in this Section 13.1
.
(v) Split Proceedings for Equitable Relief. Either you or we may seek equitable relief in
aid of arbitration prior to arbitration on the merits solely to preserve the status quo
pending completion of such arbitration process. Equitable relief awarded pursuant to
this Section 13.1.c. v
shall be enforced by any court of competent jurisdiction, and the
party seeking enforcement is entitled to an award of all costs, including legal fees, to
be paid by the party against whom enforcement is ordered following a violation of
such award.
(vi) Small Claims Court. We shall not elect to use arbitration under this Section 13.1.c
for
any Claim you properly file in a small claims court so long as the Claim seeks
individual relief only and is pending only in that court. This section is not intended to,
and does not, substitute for our ordinary business practices, policies, and
procedures, including our rights to Chargeback and to create Reserves.
(vii) Governing Law/Arbitration Procedures/Entry of Judgment. This Section 13.1.c
is
made pursuant to a transaction involving interstate commerce and is governed by
the FAA. The arbitrator shall apply New York law, including the same substantive law,
statutes of limitations and privileges as would apply in court. Arbitration will not be
deemed initiated under Section 13.1.c
, including for statute of limitations purposes
until you or we submit a Claim notice as described in Section 13.1.a
, a formal written
arbitration demand is filed with the organization selected, and you either (A) pay your
share of arbitration filing fees or (B) include in your written arbitration demand a
request that we advance your share of arbitration filing fees. Subject to the tolling
provisions of Section 13.1.b.iii
, neither sending a Claim notice alone nor requesting
mediation constitutes initiation of arbitration for statute of limitations purposes. A
business representative (either an employee or principal, the choice of whom shall be
at the producing party's discretion) for both of you and us shall attend any Arbitration
hearing, whether in-person or by remote videoconference. The arbitrator shall apply
the rules of the arbitration organization selected, as applicable to matters relating to
evidence and discovery, not the federal or any state rules of civil procedure or rules of
evidence, provided that any party may request that the arbitrator expand the scope
of discovery by doing so in writing and copying any other parties, who shall have 15
days to make objections, and the arbitrator shall notify the parties of their decision
within 20 days of any objecting party's submission. Notwithstanding the previous
sentence, if a Claim is for: (1) $100,000 or less, you or we may elect to have the
arbitration conducted solely on the basis of documents submitted to the arbitrator,
through a telephonic hearing, or by an in-person hearing as established by the rules
of the selected arbitration organization, with no discovery; (2) more than $100,000
and less than $1,000,000, you and we shall be entitled to limited discovery, which
shall include reasonable discovery of hard-copy and electronically stored
information, including not more than four custodians, the selection of which is to be
approved by the arbitrator, who shall consider, inter alia, whether the discovery
sought from one party is proportional to the discovery received by the other party,
but shall not include depositions; or (3) $1,000,000 or more, or includes a request for
injunctive relief, you and we shall be entitled to reasonable document and deposition
discovery, including reasonable discovery of electronically stored information and no
more than 10 depositions for each side, as approved by the arbitrator, who shall
consider, inter alia, whether the discovery sought from one party is proportional to
the discovery received by the other party. With respect to awards of $500,000 or
more and/or where injunctive relief is ordered by the arbitrator, either party can
initiate an appeal by notifying the arbitration organization and all parties in writing
within 60 days after the arbitrator's award is issued, after which the parties will select
a three-arbitrator panel administered by the selected arbitration organization, which
shall reconsider de novo any aspect requested of that award and whose decision (or
award (if no written decision is timely requested)) is final and binding; the appeal will
otherwise proceed pursuant to the arbitration organization's appellate rules. At the
timely request of a party, the arbitrator(s) shall provide a written and reasoned
opinion explaining their award. The arbitrator's decision is final and binding, subject
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to each party's right to appeal as stated in this Section 13.1.c and/or to challenge or
appeal an arbitration award pursuant to the FAA. If more than 60 days after the
written arbitration decision is issued, a party fails to satisfy or comply with an award
or file a notice of appeal, if applicable, the other party shall have the right to seek
judicial confirmation of the award in any state or federal court where the other party's
headquarters or assets are located.
(viii) Confidential Proceedings. The Claim, Claim notice, any subsequent arbitration
proceeding and all testimony, filings, documents, and any information relating to or
presented during the proceedings are confidential information not to be disclosed to
any other party. All offers, promises, conduct, and statements, whether written or
oral, made in the course of the Claim resolution, negotiations, mediation, arbitration,
and proceedings to confirm arbitration awards by either party, its agents, employees,
experts or attorneys, or by the mediator or arbitrator, including any arbitration award
or judgment related thereto, are confidential and inadmissible for any purpose,
including impeachment or estoppel, in any other litigation or proceeding involving
any of the parties or non-parties, provided that evidence that is otherwise admissible
or discoverable shall not be rendered inadmissible or non-discoverable as a result of
its use in the negotiation, mediation, or arbitration.
(ix) Costs of Arbitration Proceedings. You will be responsible for paying your legal fees
(except where otherwise provided in the Agreement), witness fees (including expert
witnesses), and your share of any arbitration fees (including filing, administrative,
hearing and/or, all other fees). At your written request, we will consider in our sole
discretion making, but will not be required to make, a temporary advance of your
share of any arbitration fees, or paying for the reasonable fees of an expert appointed
by the arbitrator for good cause.
(x) Additional Arbitration Awards. If the arbitrator rules in your favor for a net award in
an amount greater than any settlement offer we made to you before any final
arbitration award is announced, that arbitrator's award will include any money to
which you are entitled pursuant to the award, but in no case less than $5,000. If the
arbitrator determines that the claims or defenses of a party to the arbitration lacked
merit and were presented in bad faith or for purposes of harassment, the arbitrator
shall award to the other party such fees and costs as reasonably incurred in
responding to the improperly presented claims or defenses.
d. Interest
. To the extent permitted by Applicable Law, the parties expressly disclaim any
entitlement to prejudgment, post-verdict, or post-judgment interest imposed by New York
law or any other Applicable Law. If Applicable Law does not permit disclaiming such
interest, any interest awarded by a court, tribunal, or arbitrator related to a Claim shall be
calculated using a rate equivalent of the weekly average 1-year constant maturity Treasury
yield, as published by the Board of Governors of the Federal Reserve System, for the
calendar week preceding the date of the judgment, but in no event shall the interest rate
exceed 5%. Any award for prejudgment, post-verdict, or post-judgment interest, if not
permitted to be disclaimed under Applicable Law pursuant to the first sentence of this
paragraph, shall use this rate and this rate only.
e. Definitions
. For purposes of this Section 13.1 only, (i) we, our, and us include any of our
Affiliates, licensees, predecessors, successors, or assigns, any purchasers of any
receivables, and all agents, directors, and representatives of any of the foregoing, (ii) you
and your include any of your Affiliates, licensees, predecessors, successors, or assigns,
any purchasers of any receivables and all agents, directors, and representatives of any of
the foregoing, and (iii) Claim includes any allegation of an entitlement to relief, whether
damages, injunctive or any other form of relief, against American Express, Merchant or any
other entity that American Express has the right to join in or control its resolution,
including any transaction using an American Express product or network or issue
regarding an American Express policy or procedure.
f. Continuation
. This Section 13.1 survives termination of the Agreement, any legal
proceeding to collect a debt, any bankruptcy and any sale of you or your assets (in the case
of a sale, its terms apply to the buyer). If any portion of this Chapter 13
, except as
otherwise provided in the Limitations on Arbitration subsection, is deemed invalid or
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unenforceable, it does not invalidate the remaining portions of this Section 13.1, the
Agreement, or any predecessor agreement you may have had with us, each of which is
enforceable regardless of such invalidity.
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Glossary of Terms
Account Status Check
A type of Authorization request that is used to ask an Issuer to indicate if the Card account
represented by the Card Number on the message is valid. The Account Status Check is used,
for example, by transit authorities to check the status of a Card account associated with a
Transit Contactless Transaction at transit operator's terminal.
Advance Payment Charge
A Charge for which full payment is made in advance of Merchant providing the goods and/or
rendering the services to the Cardmember.
Affiliate
Any Entity that controls, is controlled by, or is under common control with either party,
including its subsidiaries. As used in this definition, "control" means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of an
Entity, whether through ownership of voting securities, by contract, or otherwise. For the
avoidance of doubt, but not by way of limitation, the direct or indirect ownership of more than
50% of (i) the voting securities or (ii) an interest in the assets, profits, or earnings of an Entity
shall be deemed to constitute "control" of the Entity.
Agency
Any Entity or line of business that uses Merchant's Marks or holds itself out to the public as a
member of Merchant's group of companies.
Aggregated Charge
A Charge that combines multiple small purchases or refunds (or both) incurred on a Card into a
single, larger Charge before submitting the Charge for payment.
Aggregated Transit Charge
An Aggregated Charge that combines multiple small Transit Contactless Transactions incurred
on a Card into a single, larger Charge before submitting the Charge for payment.
Agreement
The merchant processing agreement or sponsored merchant agreement, the American
Express Merchant Operating Guide, and any accompanying schedules and exhibits, collectively,
between Merchant and its Merchant Services Provider.
American Express
American Express Travel Related Services Company, Inc.
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American Express Brand
The American Express name, trademarks, service marks, logos, and other proprietary designs
and designations and the imagery owned by American Express or an American Express
Affiliate and the goodwill associated with all of the foregoing and with all the goods and services
now and in the future provided, marketed, offered, or promoted by American Express or an
American Express Affiliate.
American Express Card or Cards
(i) any card, account access device, or payment device or service bearing an American Express
or an American Express Affiliate's Marks and issued by an Issuer or (ii) a Card Number. Card
also includes any card or other account access device or service issued by a Third Party Issuer
and bearing such Third Party Issuer's name or Marks but not the Marks of American Express.
American Express Network or Network
The Network of Merchants that accept Cards and the operational, service delivery, systems,
and marketing infrastructure that supports this Network and the American Express Brand.
American Express Quick Chip
A software solution that modifies the EMV transaction flow for processing of American Express
Cards, which allows a Chip Card to be inserted before the final Transaction amount is known,
and does not require the Card to remain in the reader during the online Authorization process.
Applicable Law (i) any law, statute, regulation, ordinance, or subordinate legislation in force
from time to time to which Merchant or its Merchant Services Provider is subject, (ii) the
common law as applicable to them from time to time, (iii) any court order, judgment, or decree
that is binding on them, and (iv) any directive, policy, rule, or order that is binding on them and
that is made or given by a regulator or other government or government agency of any
Territory, or other national, federal, commonwealth, state, provincial, or local jurisdiction.
Application-initiated Transaction
A Transaction initiated by an electronic device (including but not limited to, a mobile telephone,
tablet, or wearable device) utilizing a merchant software application within the electronic
device.
Approval/Approved
A message granting an Authorization in response to a request for Authorization from a
Merchant, consisting of an Approval or other indicator.
Assured Reservation Program
A program that allows Cardmembers to contact a participating property or rental agency to
make an Assured Reservation and guarantee the hotel reservation by giving their American
Express Card. The Assured Reservation Program is available to the following industries: hotel,
trailer park/campground, vehicle, aircraft, bicycle, boat, equipment, motor home, and
motorcycle rentals.
Authorization/Authorized
The process by which a Merchant obtains an Approval for a Charge in accordance with the
Agreement.
Authorization Time Period
The number of days an approved Authorization is valid for a transit purchase, before another
Account Status Check or Authorization is required.
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Bank Account
An account that Merchant holds at a bank or other financial institution.
Batch
A group of Transactions, submitted to your Merchant Services Provider, usually on a daily
basis.
Card—See American Express Card or Cards.
Card Data
Includes the following elements: Cardmember name, Card Number, Expiration Date, Charge
date, the amount of the Charge, the Approval, description of goods and services, Merchant
name, Merchant address, Merchant Number and if applicable the Establishment number,
Cardmember signature (if obtained), 'No Refund' if you have a no refund policy, and all other
information as required from time to time by your Merchant Services Provider, American
Express, or Applicable Law.
Card Identification (CID) Number
A four-digit number printed on the Card. See Section 5.10, "Card Identification (CID) Number"
for additional information.
Card Not Present Charge
A Charge for which the Card is not presented at the point of sale (e.g., Charges by mail,
telephone, fax, or the internet).
Card Number
The unique identifying number that the Issuer assigns to the Card when it is issued.
Card Present Charge
A Charge for which the physical Card and Cardmember are present at the point of sale,
including In-Person Charges and Charges made at CATs.
CARDeposit Program
A program that permits Cardmembers to charge the payment of an Advance Payment Charge
to their Cards when a deposit is required. See Subsection 12.13.1.2, "
CARDeposit Program" for
additional information.
Cardmember (also referred to as Card Member)
An individual or Entity (i) that has entered into an agreement establishing a Card account with
an Issuer or (ii) whose name appears on the Card.
Cardmember Information
Any information about Cardmembers and Transactions, including, but not limited to,
Transaction Data, and Cardmember name, addresses, Card Numbers, and CID Numbers.
Cardmember-Initiated Transaction (CIT)
A Transaction which involves the direct participation of the Cardmember.
Charge
A payment or purchase made on the Card, excluding any payment or purchase that you route
to a network other than the American Express Network.
Charge Data
Data to be included in Submissions of Charge Records.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Charge Record
A reproducible (both paper and electronic) record of a Charge that complies with American
Express' requirements and contains the Card Number, Transaction date, dollar amount,
Approval, Cardmember signature (if applicable), and other information.
Chargeback
When used as a verb, means (i) your Merchant Services Provider’s reimbursement from you for
the amount of a Charge charged back to you, or (ii) your Merchant Services Provider’s reversal
of a Charge for which it has not paid you; when used as a noun, means the amount of a Charge
subject to reimbursement from you or reversal.
Chargeback Protection Threshold
The maximum value of one or more aggregated transit Transactions that can be settled against
an approved Authorization and protected from Chargebacks.
Chip
An integrated microchip embedded on a Card containing Cardmember and account
information.
Chip Card
A Card that contains a Chip and could require a PIN as a means of verifying the identity of the
Cardmember or account information contained in the Chip, or both, (sometimes called a
"smart Card", an "EMV Card", or an "ICC" or "integrated circuit Card" in American Express'
materials).
Chip Card Data
The information contained in the Chip on a Chip Card that is used to process Transactions.
Code 10
A phrase that a Merchant communicates to its Merchant Services Provider to alert of a possible
suspicious Card and/or Transaction. Code 10 situations usually occur during Authorization.
Collusion
Any Transaction, activity, or agreement conducted by a Merchant or its agent with another
party, including another Merchant or a Cardmember, which the Merchant knew or should have
known was not legitimate, or carried out in violation of Chapter 10, "
Risk Evaluation".
Compelling Evidence
Additional types of documentation provided by the Merchant to demonstrate the Cardmember
participated in the Transaction, received goods or services, or benefited from the Transaction.
Please contact your Merchant Services Provider for additional information regarding
Compelling Evidence.
Consumer Device Cardholder Verification Method (CDCVM)
An Issuer approved, American Express recognized Cardholder Verification Method whereby the
Cardmember's credentials are verified on a Mobile Device.
Contactless
Technology enabling a Card or Mobile Device embedded with a radio frequency component
(currently, Expresspay) to communicate with a radio frequency-enabled POS System to initiate
a Transaction. See also Expresspay
.
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Covered Parties
Any or all of your employees, agents, representatives, subcontractors, processors, Service
Providers, providers of your point-of-sale (POS) equipment or systems, or payment processing
solutions, Entities associated with your American Express merchant account, and any other
party to whom you may provide Cardholder Data or Sensitive Authentication Data (or both)
access in accordance with the Agreement.
Credentials-on-File
Any Cardmember account data, including but not limited to PAN or Token, that is stored by
Merchants. Merchants may store Credentials-on-File to initiate Merchant-Initiated
Transactions and Cardmembers may use their Credentials-on-File to initiate Cardmember-
Initiated Transactions.
Credit
The amount of the Charge that Merchant refunds to Cardmembers for purchases or payments
made on the Card.
Credit Record
A record of Credit that complies with American Express' requirements.
Cryptocurrency
A digital asset recognized as a medium of exchange, unit and/or store of value that employs
blockchain technology and cryptography to submit and verify Transactions.
Customer Activated Terminal (CAT)
An unattended POS System (e.g., gasoline pump, vending machine, check-out kiosk).
Sometimes referred to as an unattended terminal in our materials.
Data Security Requirements (DSR)
The American Express data security policy for Merchants, as described in Chapter 8,
"Protecting Cardmember Information" of the Merchant Operating Guide and is also made
available to Merchants at www.americanexpress.com/dsr
.
Debit Card
A Card that accesses a demand deposit, current, savings, or similar account. A Transaction is
settled from the accessed account. A Debit Card is not a Prepaid Card.
Decline
A message denying the Merchant's request for Authorization.
Declined Authorization Protection Threshold
The maximum amount that can be settled following a declined Authorization for a Transit
Contactless Transaction.
Delayed Delivery Charge
A single purchase for which Merchant must create and submit two separate Charge Records.
The first Charge Record is for the deposit or down payment and the second Charge Record is
for the balance of the purchase.
Deny List
A list of Card Numbers that have received a declined Account Status Check or Authorization
without a subsequent approved one that removes it from the list.
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Digital Goods or Services
Digital merchandise or services downloaded or accessed via Internet or another file transfer
process (e.g., movies, applications, games, virus scanning software).
Digital Wallet Application-initiated Transaction
An Application-initiated Transaction that is initiated by a digital wallet within a Mobile Device.
Digital Wallet Contactless-initiated Transaction
A contactless Transaction initiated by a digital wallet within a Mobile Device via the contactless
interface.
Digital Wallet Magnetic Secure Transmission Transaction
A type of Digital Wallet Payment where a Transaction is initiated by a digital wallet within a
Mobile Device via the magnetic stripe reader within a POS system.
Digital Wallet Payment
A Digital Wallet Contactless-initiated Transaction, Digital Wallet Application-initiated
Transaction, and/or Digital Wallet Magnetic Secure Transmission (MST) Transaction conducted
via a digital wallet, operated by an American Express approved third party wallet provider that
resides on a Mobile Device.
Disputed Charge
A Charge about which a claim, complaint, or question has been brought.
E-commerce Transaction
The purchasing of physical or Digital Goods or Services using the Internet, an application, or
electronic network on either a personal computer or Mobile Device including, but not limited to,
Internet Transactions or Digital Wallet Application-initiated Transactions.
Entity
A corporation, partnership, sole proprietorship, trust, association, or any other legally
recognized entity or organization.
Establishments
Any or all of your and your Affiliates' locations, outlets, websites, online networks, and all other
methods for selling goods and services, including methods that you adopt in the future.
Estimated Authorization
An Authorization for an estimated amount that differs from the final submission amount.
Estimated Lodging Charge
The estimated amount of Charges based on the room rates and the number of days the
Cardmember expects to stay, plus taxes and other known incidental amounts.
Estimated Vehicle Rental Charge
The rental rate multiplied by the rental period reserved by the Cardmember, plus taxes and any
known incidental amounts.
Expiration Date
The month and year on which a Card expires (sometimes referred to as "valid thru" or "active
thru" date).
Expresspay
An American Express program that enables Contactless transactions.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Floor Limit
A monetary threshold for a single Charge, at or above which Merchant must obtain an
Authorization before completing the Charge.
Fraud Full Recourse Program
One of American Express' Chargeback programs.
High Risk Merchant
A Merchant designation indicating that certain fraud Transactions conducted at the Merchant
may be issued as a Chargeback to the Merchant under American Express' Fraud Full Recourse
Program.
Immediate Chargeback Program
One of American Express' Chargeback programs.
In-Person Charge
A Card Present Charge excluding Charges made at CATs (e.g., a Charge taken at a Merchant
attended retail location where the Card is swiped, read by a contactless reader, inserted into a
Chip Card reader, or manually key-entered).
Inquiry
A request for information about a Disputed Charge.
Installment Payment Transaction
A transaction that represents a single installment payment in a series of installments over a
fixed period.
Internet Electronic Delivery
The delivery of Digital Goods or Services purchased on the internet via an internet or an
electronic network download or another file transfer process (e.g., images or software
download).
Internet Order
Card payment information that is taken via the World Wide Web, online (usually via a website
payment page), email, intranet, extranet, or other similar network in payment for merchandise
or services.
Introductory Offer
A free or reduced cost trial, promotion, or other similar offer for a limited period of time that
allows Cardmembers to try a product or service before the Card is billed for the regular price of
the product or service.
Issuer
Any Entity (including American Express and its Affiliates) licensed by American Express or an
American Express Affiliate to issue Cards and to engage in the Card issuing business.
Magnetic Stripe
A stripe on the back of a Card that contains Cardmember and account information in machine
readable form.
Marks
Names, logos, service marks, trademarks, trade names, taglines, or other proprietary designs
or designations.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Merchant
Any seller of goods or services, non-profit, or government Entity that enters into an agreement
with a Merchant Services Provider wherein the seller agrees to (i) permit any Cardmember to
charge purchases of goods and services at or with such Merchant by means of the Card and (ii)
transfer Transactions to American Express through Merchant Services Provider. Sponsored
Merchants shall be included within the meaning of Merchants.
Merchant Account
An account established by Merchant Services Provider upon entering into an Agreement with a
Merchant.
Merchant Category Code
The four (4) digit code used to identify the industry in which the Merchant is doing business.
Merchant-Initiated Transaction (MIT)
A Transaction based on a prior agreement between Cardmember and Merchant that is initiated
by the Merchant without direct participation from the Cardmember, through Merchant use of
Account Data on File.
Merchant Number
The unique merchant identification number (or MID) provided by Merchant Services Provider
to Merchant for submitting transactions.
Merchant Operating Guide
The American Express Merchant Operating Guide, which is available at
www.americanexpress.com/merchantopguide.
Merchant Services Provider
An Entity authorized under the American Express OptBlue
®
Program to accept Charges from a
Merchant pursuant to an Agreement or a Payment Facilitator authorized to accept Charges
from a Merchant. These services may include, but are not limited to, processing transactions,
facilitating authorizations on purchases, and capturing data, merchant accounting, backroom
operations (e.g., chargebacks and detecting fraud), provision of point of sale equipment,
solutions, or systems, sales, or customer service.
Mobile Device
An Issuer approved and American Express recognized electronic device (including, but not
limited to, a mobile telephone, tablet, or wearable device) that is enabled to initiate a Digital
Wallet Payment Transaction.
Mobile Point of Sale (MPOS)
A generic term for a system comprising of a commercial off-the-shelf mobile computing device
with cellular or Wi-Fi data connectivity (such as a phone, tablet, or laptop) that may be used in
conjunction with a Card-reading peripheral to accept contact and/or Contactless Transactions.
Network—See American Express Network or Network.
No PIN Program
A program that allows an Establishment to not request a signature or PIN from Cardmembers.
See Section 4.2.1, "No PIN Program"
for additional information.
This document contains sensitive, confidential and trade secret information, and must not be April 2024
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Original Transaction Identifier (O-TID)
A Transaction Identifier (TID) generated by the AEGN during an Authorization Request for a
Cardmember-Initiated Transaction which links all subsequent Merchant-Initiated Transactions
back to the original Cardmember-Initiated Transaction.
Other Payment Products
Any charge, credit, debit, stored value, prepaid, or smart cards, account access devices, or
other payment cards, services, or products other than the Card.
Partial Immediate Chargeback Program
One of American Express' Chargeback programs.
Payment Facilitator
A provider of Payment Services, formerly referred to as Payment Aggregator, Payment Service
Provider or PSP in American Express materials.
Payment Services
The provision of payment services in connection with Transactions between Cardmembers and
Sponsored Merchants whereby the Entity providing such services (and not the Sponsored
Merchant), is the Merchant of record, submits Transactions under its Merchant Number and
receives payment from us for Charges (among other things).
Personal Identification Number (PIN)
A secret code for use with one or more American Express Network, Acquirer, or Issuer systems
that is used to authenticate the user (e.g., a Cardmember) to that system.
Point of Sale (POS) System
An information processing system or equipment, including a terminal, personal computer,
electronic cash register, contactless reader, Mobile Point of Sale (MPOS), or payment engine or
process, used by a Merchant, to obtain Authorizations or to collect Transaction Data, or both.
Prepaid Card
A Card that is marked "Prepaid" or bearing such other identifiers used by American Express
from time to time.
Proof of Delivery
A courier receipt which proves that the goods were delivered to the complete and valid shipping
address provided by the Cardmember when the purchase was made.
Property Damage Fee
An additional sum of money that may be charged to a Cardmember in relation to property
damage that has been sustained to the rental accommodation (or property therein) or rental
equipment (or part thereof) during the stay or rental period for which the Merchant is able to
demonstrate the genuine costs incurred or required to repair or replace the property or
equipment.
Recurring Billing
An option offered to Cardmembers to make recurring Charges automatically on their Card
(e.g., membership fees to health clubs, magazine subscriptions, and insurance premiums).
Rental Establishments
Long-term rentals used as primary residences.
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Reloadable Prepaid
A Prepaid Card whereby once funds are depleted, it can be reloaded by adding funds to the
Card.
Rights-holder
A natural or legal person or Entity having the legal standing and authority to assert a copyright
or trademark right.
Settlement
The process by which your Merchant Services Provider compiles your debits and credits to
calculate a net amount that will be applied to your Bank Account.
Split Tender
The use of multiple forms of payment (e.g., prepaid products, cash, American Express Card)
for a single purchase.
Submission
The collection of Transaction Data sent to American Express.
Submission Frequency
The maximum number of days that Transit Transactions can be aggregated before submission
is required.
System Outage
The interruption of either Merchant or Network systems or services (e.g., computer system
failure, telecommunications failure, or regularly scheduled downtime).
Technical Specifications
The set of mandatory, conditional, and optional requirements related to connectivity to the
Network and electronic Transaction processing, including Authorization and Submission of
Transactions (sometimes called "specifications" in American Express' materials), which
American Express may update from time to time.
Telecommunications
Communication services, including personal communication services; cellular, paging, long
distance, etc.
Token
A surrogate value that replaces the Card Number.
Transaction
A Charge or Credit completed by the means of a Card.
Transaction Data
All information required by American Express, evidencing one or more Transactions, including
information obtained at the point of sale, information obtained or generated during
Authorization and Submission, and any Chargeback.
Transit Contactless Transaction
A Contactless (see also Expresspay) Transaction for entry into and/or use of a transit system.
Transmission
A method of sending Transaction Data to American Express whereby Transaction Data is
transmitted electronically over communication lines.
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Transmission Data
The same as Card Data except for the requirements to include: Cardmember name, Expiration
Date, the Cardmember's signature (if obtained); and the words "No Refund" if the Merchant
has a no refund policy.
URL
Uniform Resource Locator, a term used to identify an internet address.
United States (U.S.) Region
Consists of the 50 United States and the District of Columbia, Guam, Puerto Rico, and the U.S.
Virgin Islands, but no other U.S. territory or possession.
Valid Dates
The dates on the Card that indicate the first and last date the Card can be used to make
purchases.
We, our and us
American Express Travel Related Services Company, Inc.
You and your
The individual or Entity that executes the Agreement with a Merchant Services Provider
(sometimes called the "Merchant" or "Establishment" in this Merchant Operating Guide).
