C28
Amex Reason Code C28: Canceled Recurring Billing
A C28 dispute means the cardholder says they stopped a recurring charge. Here is what the code means and how to answer it.
- Network
- American Express
- Published
Amex reason code C28 is a chargeback code called Canceled recurring billing. It sits in the Card Member Disputes group. The cardholder says they canceled a recurring charge, or tried to, and the charge went through anyway. If you got one, your job is to show the cancel never happened, or that the customer still uses what they pay for.
What is Amex reason code C28?
C28 means the Card Member says they canceled, or tried to cancel, recurring billing for goods or services. It covers any charge that repeats on a schedule. Gym memberships, software plans, subscriptions and monthly service fees all fit here.
The code does not mean you did anything wrong. It means the cardholder told their bank the billing should have stopped. Your reply either backs that up or knocks it down.
Why a cardholder files a C28 dispute
Most C28 disputes come from one of three situations. The customer canceled and your system kept charging. The customer tried to cancel but did not follow your steps, so the billing never stopped. Or the customer forgot they signed up and called their bank instead of you.
Before you hear anything, the disputed charge is first worked on with the Card Member. If that does not settle it, you get contacted. If more information is needed, the merchant receives either an Inquiry or a Chargeback.
How the C28 chargeback process works
You get an Inquiry when a Card Member disputes a charge that cannot be resolved with the documents on file. An Inquiry asks for your papers before any money moves.
A Chargeback is different. If the Card Member gives enough information, the merchant's account may be debited upfront. The money is gone until you answer.
If your reply settles the dispute on time, there is no Chargeback. After a Chargeback, the merchant can send supporting documents that might reverse it. The Chargeback is undone if the reply addresses the dispute successfully and on time. If you do not reply in time, or you skip the requested documents, the Chargeback stands.
How to respond to a C28 chargeback
The best way to respond is online through your Merchant Account. Log in, open the case, and upload your documents before the due date.
Your reply has three jobs. Explain the documents. Address the specific dispute reason. Describe the steps taken to resolve it. A short cover note that does all three works better than a pile of unlabeled files.
Match your proof to the claim. The cardholder says they canceled. Show they did not, or show they kept using the service after the date they claim they canceled. Proof that ignores the claim will not save the case.
What documents to submit for a C28 dispute
A merchant's supporting documents should include a copy of the charge record or credit record. Start there, then add proof that fits the claim.
- The signed agreement showing the recurring billing terms and how to cancel.
- Any emails or account notes showing the customer never asked to cancel.
- Usage logs, delivery records or login history showing the customer still uses the service.
- Proof you told the customer about each charge, if your agreement requires notice.
- A copy of your cancellation policy, with the steps the customer did not follow.
A merchant can show the Card Member did not cancel and still uses the service or receives the goods. That is the strongest answer to C28.
Tips to prevent C28 chargebacks
Make canceling easy and put the steps in writing. Hard-to-find cancel buttons push customers to their banks.
Send a reminder before each renewal. Let customers cancel from that email in one click.
Keep records of every cancel request, with dates and confirmations. When a cancel comes in, stop the billing the same day and confirm it in writing.
Watch for inactive accounts still on billing. A customer who has not logged in for months is a dispute waiting to happen. Pause or check in before the next charge.
If a case does go through, know what happens next. Read how to read a chargeback notice to find the code and deadline. Then see what happens after you answer a chargeback for the rounds that follow. Related Amex codes include C05, goods or services canceled, C08, goods or services not received and C14, paid by other means.