Amex Chargeback Reason Code A01: Charge Amount Exceeds Authorization Amount
An issuing bank received a claim that the transaction amount exceeds the authorized transaction amount. Merchant charged to the cardholder with the higher amount than what was agreed. Merchant exceeded the allowable amount limit from a Limited Amount Terminal, a Self-Service Terminal or an Automated Fuel Dispenser. Card issuer received a transaction request that exceeds the account’s amount limit.
Most Common Causes
- The transactionwas not approved.
- The transaction amount passed the limit from the floor limit that was authorized by the card network.
- The authorization request was denied or the transaction was made by an expired card.
- If the transaction was not authorized by Technical fallback and CVM fallback transactions.
- The merchant processed a fictitious account number on which card owner’s authorization was not obtained.
- The merchant processed a transaction card owner did not participated in.
- Transaction is processed on invalid card using an account number.
- A family member ordered from the primary cardholder’s account without his permission.
- The owner of the card; if not able to recognize purchase on the billing statement also causes it.
- The merchant should provide the document that business did not need the authorization.
- The merchant may present the document that the cardholder obtained authorization for the transaction amount.
- Providing the document with the amount that was authorized, authorization approval code, and the date of the authorization.
- If the transaction was a mobile order, telephone order or Internet transaction and an authorization approval were received and address verification was made that matched cardholder’s street address and ZIP code, then provide the evidence. Also, if the product was delivered to the correct address as per AVS query, send the POD, order receipt and any additional documents related to the transaction.
- If the transaction is below the allowable amount, provide the copy of the order receipt that shows transaction amount clearly or audit tape as supporting document.
- If the transaction is over the allowed amount, accept the chargeback.
- If the merchant has issued a refund/credit on disputed charge to the cardholder, provide the proof of refund.
- If the merchant hasn’t issued a refund/credit on disputed charge to the cardholder, accept the chargeback.
- The chargeback from this reason may be reversed by supplying documentation that proves that the transaction was less than the approved amount, or prove that a credit was issued.
- To prevent this type of chargeback the merchant needs to set the terminals below allowable transaction amount.
- POS machines should work properly.
- Automated Fuel Dispenser terminals should have the correct MCC code i.e. 5542 and store location should have MCC code i.e. 5541.
- Linda purchases a software from a merchant, however, the bill went on above the expectation. Linda was still charged with the amount. The merchant had a limited-amount terminal but charged Linda with a larger amount, hence getting a chargeback under the Reason Code A01: Charge Amount Exceeds Authorization Amount.
- George purchased a software from the same merchant, however, this time his amount was lesser than what Linda had paid. Still, the merchant received a chargeback under the Reason Code A01: Charge Amount Exceeds Authorization Amount. Only this time he had reduced the cost of the software so as the match his limited amount criteria. The merchant has to provide documentation proving that the amount charged was an approved amount.
The Ultimate Dispute Management Resource
Download our 100+ page comprehensive guide to reason codes, modifiers, time limits, and compelling evidence.