C32
Amex Reason Code C32: Damaged or Defective Goods
A C32 notice means the cardholder says what arrived was broken or faulty. Here is what they must show and what proof wins the case.
- Network
- American Express
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Amex reason code C32 is the code for Goods/services damaged or defective. When you see it, the cardholder is saying the thing they bought arrived broken, faulty, or did not work. Your job is to show that claim is wrong, or that the cardholder kept the goods anyway.
What is Amex reason code C32?
C32 means the Card Member says the goods or services they received were damaged or defective. It is an American Express dispute code, so it only shows up on Amex sales.
The dispute does not start with you. A disputed charge is first worked on with the Card Member before the merchant is contacted. If more information is needed, you receive either an Inquiry or a Chargeback.
An Inquiry is a request for information. You get one when a Card Member disputes a charge that cannot be resolved with the documents on file. A Chargeback is stronger. If the Card Member gives enough information, your account may be debited upfront.
Common scenarios that trigger a C32 chargeback
Most C32 claims fall into a few patterns.
- A product arrived cracked, dented, or broken in the box.
- A device or appliance did not work when the cardholder first used it.
- A service was performed badly, like a repair that did not fix the problem.
- Food or flowers arrived spoiled or wilted.
- The cardholder damaged the item themselves and blamed the seller.
That last one matters. Some C32 claims are honest mistakes or buyer's regret dressed up as a defect claim.
What the cardholder must show to file C32
The cardholder has to describe the problem. They tell Amex what they bought, what was wrong with it, and when they found the damage. They may send photos or a written complaint.
They do not have to prove their case fully at this stage. That is why an Inquiry can turn into a Chargeback even when you did nothing wrong. Your proof is what settles it.
How to defend against a C32 chargeback
You can win a C32 dispute with the right documents. There are three main paths.
First, send proof refuting the claim that the goods or services were damaged or defective. This could be a photo of the item before it shipped. It could also be a quality check record, or a note from the person who did the work.
Second, show the goods were not returned. If your policy allows returns and the cardholder never sent the item back, say so. Include your return policy and the order record showing no return was received.
Third, show the Card Member agreed to accept them as delivered. A signed delivery receipt, an email saying the item arrived fine, or a completed service sign-off all work here.
Your supporting documents should include a copy of the charge record or credit record. A good reply explains the documents, addresses the specific dispute reason and describes the steps taken to resolve it.
C32 vs. C31: key differences
C32 and its neighbor code are easy to mix up. C32 covers things that arrived broken or faulty. C31 covers things that arrived as described but were not what the cardholder wanted.
A cracked vase is C32. A vase that arrived intact but was the wrong color is C31. The split matters because the proof differs. For C32 you show the item was not damaged. For C31 you show it matched the description the cardholder saw.
Step-by-step: responding to a C32 chargeback online
The best way for a merchant to respond to a dispute is online through its Merchant Account. Here is the order to work in.
- Read the notice. If you need help finding the code, see how to read a chargeback notice.
- Check the deadline on the notice. Missing it loses the case.
- Gather your documents. Pick the ones that answer the defect claim directly.
- Write a short cover note. Explain what each document shows.
- Submit everything through your Merchant Account before the deadline.
Keep a copy of what you send. If the case moves to a later round, you will need it.
What happens if you lose a C32 chargeback
The outcome depends on which stage you are in.
If you got an Inquiry and your reply settles the dispute on time, there is no Chargeback. The case ends there.
If you already got a Chargeback, you can still send supporting documents that might reverse it. The Chargeback is undone if your reply addresses the dispute successfully and on time.
If you do not reply in time, or you do not send the requested documents, the Chargeback stands. The money stays gone. To understand what can happen after you answer, see what happens after you answer a chargeback.
The lesson is the same at every stage. Answer fast, and send proof that speaks to the defect claim itself.