American Express Chargeback Reason Code P05: Incorrect Charge Amount
The buyer’s bank found incorrect transaction amount or it did not match the posted information and the information on the order receipt. Transaction was processed with incorrect transaction amount and/or had error while calculating the transaction amount without cardholder’s permission or the merchant altered the amount after the order was processed without notifying the cardholder.
Most Common Causes
If the merchant
- Entered wrong transaction amount for that particular transaction.
- Altered the amount after getting the signature from the customer.
- Made a mistake while calculating the amount.
- Exchanged the amount after completing the transaction without taking permission from the cardholder.
- Increased the transaction amount without getting any consent from the cardholder.
- Provide documents to the acquirer bank describing the product, the transaction amount on the order receipt is same as information posted with the bank.
- Accept the chargeback, if the transaction amount is different from the order receipt and the information posted.
- If the Goods or Services were shipped after the agreed shipping date, provide the proof of delivery and proper acceptance of the cardholder at the correct shipping address.
- If disputed the charge for an incorrect transaction amount, the merchant should process a new transaction within 30 days from the original date, however, if the chargeback has already performed its function never issue refund for that particular transaction.
- No action needed, if the customer disputes the charge for an incorrect amount.
- If the business accepts cards, swipe it or manually enter the account number, however, make sure that the account information is used from the face of the card on the order receipt.
- Ensure that a standard printer is used to print the order receipt.
- If the cardholder has signed an order receipt, the merchant should not exchange or alter it.
- If chargeback was imposed on an incorrect amount, the merchant must try to communicate with the cardholder to adjust the order receipt to show up the correct amount.
- Compare the key-entered to make sure that the transaction information typed is accurate.
- Linda went grocery shopping and swiped her card to make the purchase. She didn’t realize and hit the option “yes” when asked if the amount was correct. Later she tallies her bill and cross checks the amount to find out that ten more dollars have been added to the bill. She therefore, goes ahead and disputes the charge with the help of her bank under the Reason Code P05: Incorrect Charge Amount.
- George went to a restaurant with a few friends. Few days later, when he checked his account, he finds out that he has been charged more than he was supposed to pay after the split, and tallies from the receipt. He calls at the restaurant and requests them to look into the matter. The restaurant claims that they have charged the right amount but, George is certain that there is a mistake so he disputes the amount under the Reason Code P05: Incorrect Charge Amount.
The Ultimate Dispute Management Resource
Download our comprehensive guide to reason codes, modifiers, time limits, and compelling evidence.