American Express Dispute Process

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Yohee
 
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Joined: Wed Jun 17, 2015 11:31 pm

American Express Dispute Process

Postby Yohee » Wed Jun 17, 2015 11:42 pm

Looking for a bit of help on the AE Dispute process!

We're the vendor in this case and we've just been notified of a dispute against us from a client.

We - somewhat ironically - sell credit card terminals in bulk across the world. A client of ours brought 500 terminals, only to discover that a nuance of that particular type of terminal meant it could not be deployed in the US. We have a strict policy that it is the clients obligation to ensure that they order the right thing and that compatibility is upto the client to ensure - although we did arrange for an additional 500 units to be sent of a different type (which we charged for but gave them 90 days to pay), and then a further 500 units of the original order of a variant that would work for him locally. The later took ~ four months.

The last 500 units arrived, and instead of paying the bill for the second 500 as promised, the client said that he couldn't' sell the units and was shutting down his business. After a lengthy negotiation we agreed to take the terminals he did have off him, and not charge for the second 500 which he agreed to verbally - but never in writing (despite us asking him to do so and we sent several emails outlining the agreed conversation which he didn't reply too).

Today we find out he's disputing the original charge. His first attempt at this was that he said he could not recall the transaction (not a good lie since AE called him at the time of the charge to get authorization) and the second attempt stated that he had returned the goods to us so was expecting a full refund.

We're happy that our conduct, process and the trail of written agreements leaves us in the clear - although the process is fairly nerve wracking given the size of the transactions (5 figures).

Does anyone have any experience with how AE handles these disputes? Are they a mediator or do they tend to just side with the card holder? Its worth noting the original transaction is six months old.

Alternatively - does a service exist out there to help merchants defend these type of reversals/disputes?

Appreciate any wisdom anyone might have!

Cheers
Joshua Harris


yfan
Centurion Member
Centurion Member
 
Posts: 378
Joined: Wed Jul 09, 2014 5:55 pm
Location: San Jose CA

Re: American Express Dispute Process

Postby yfan » Thu Jun 18, 2015 1:04 pm

I am still a little unclear on exactly who has possession of each batch of units. Did the client return the originals and do you have possession of those? Did he also return the second batch?

Regardless of what your policy may be, if you accept a return, it's likely that Amex will treat that transaction eligible for a refund.

You also have an Amex contract - for vendors. Time to get it out and go over it with a fine comb. Is there an arbitration clause? If so, any appeal of their decision will have to be decided in arbitration. If not, you can take them to court.



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