Amex Reason Code- C32 - Goods or Services you Purchased are Defective

Issuing bank received a complaint from the customer that goods or services he purchased are defective, damaged or not fit the expectation of the customer. Customer claims that policies explained verbally by the merchant during purchase were different and that what he received was different than expected.

Some Causes

• Wrong merchandise/goods sent to the cardholder.
• During shipment, goods got damaged.
• The goods or services were described inaccurately.
• The services purchased by the cardholder weren’t canceled on time.
• The services did not perform as it was described.
• The returned merchandise was not accepted by the merchant.
• The returned merchandise accepted but merchant did not issue a credit to the cardholder.
• Counterfeit consumer goods.

Necessary Evidence

• If goods were returned or services were canceled, the merchant must provide the bank with all the information or evidence of the refund.
• If the merchant hasn’t received the returned goods or the cardholder has not canceled the service, inform the bank. The cardholder must make a valid effort to return merchandise or cancel the service. The merchant must ensure that the incoming shipments are recorded to later verify.
• If the cardholder’s complaint is legal and the merchant has received the goods, but have not refunded the amount, he must accept the chargeback. Do not process a credit until the chargeback has performed this function.
• If the goods were accurate and as described, provide the merchant bank with specific information and invoices to deny the cardholder’s claims.
• If merchandise was damaged and it was returned, provide evidence that it was repaired or replaced.

How to do Prevention?

• Make sure that the policies regarding the merchandise or services are explained clearly, these should be delivered in the manner they are supposed to be delivered or as mentioned in terms and policies.
• Make sure that orders are placed correctly and arrived perfectly. It must be reviewed and checked regularly during the delivery process.
• The staff must be trained from time to time on how to accurately file an order.
• The buyers must be notified of every cancellation request, credit or refund in order to reduce the possibilities of chargebacks.

Related Example-

Linda bought few beauty products online, however, upon arrival she finds few broken pieces in her kit. She decides to return the kit but the time passes by and she forgets to return it on time. She speaks to the merchant if she would be refunded or allowed to return the product after the dues date. Merchant refuses as the policy doesn’t accept returns after 30 days. Linda finds it difficult to use the product as decides to dispute the transaction in the hope of winning the chargeback under the Reason Code C32: Goods/Services Damaged or Defective