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American Express Reason Code P23

Amex Chargeback Reason Code P23: Currency Discrepancy

Description

The buyer’s bank found incorrect currency or currency rate than what the cardholder was aware about. Incorrect transaction amount processed or it is mismatched due to currency discrepancy is the main cause for this type of chargeback reasons.

Most Common Causes
  • The transaction currency is different than the currency processed.
  • Entered wrong currency for that particular transaction.
  • Currency got changed after getting the signature from the customer.
  • Made a mistake while calculating the amount from one currency to another.
  • Exchanged the currency after completing the transaction without taking permission from the cardholder.
  • Cardholder claims that the goods and services failed to offer them a choice to pay in the merchant’s local currency.
Evidence Required
  • Provide documents to the acquirer bank describing the product, the currency and the transaction amount on the order receipt are same as Posted information.
  • Accept the chargeback, if the currency and the transaction amount are different from the order receipt and the information posted.
  • No action needed, if the customer dispute chargeback for incorrect amount due to currency discrepancy.
Prevention:
  • Deposit receipts in the country, where the purchase was made. A Deposit receipt facilitates buying shares in other companies.
  • Inform cardholders of the use of cash conversion and applicable fees.
  • If 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 cardholder to adjust the order receipt to show up the correct amount
Common Examples
  1. Linda went for a holiday with her friends to Dubai and made some purchases using her American Express. Upon her return, when she checked her account she found a few unknown charges under a different currency and unfamiliar descriptors. She instantly contacts her bank and request to dispute the charges under the Reason Code P23: Currency Discrepancy.
  2. George was traveling oversees for a Global Summit where he made few bookings using his American Express card. When he returned back to his country and checked his statements, he finds out that the currency exchange rate that was used for him was higher than what was supposed to be used, making his trip more expensive. He contacts the card issuer and asks for the reason of such difference in rate. Upon no satisfactory response, he decides to dispute the amount under the Reason Code P23: Currency Discrepancy. 

Chargeback Prevention