American Express · Chargeback reason codes
American Express FR2 chargeback: Fraud Full Recourse Program explained
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American Express reason code FR2, Fraud Full Recourse, means Amex has placed the merchant in its Fraud Full Recourse Program, so it can charge back any fraud dispute for the full amount, even an authorized one, with no right to request a reversal. Merchants are placed for high risk, high fraud levels or deceptive practices. The only answers are proof you were not in the program, or that the transaction is excluded.
- Category
- Fraud (program)
- Time limit for the bank to file
- 120 days, or 365 days for certain high-risk merchants
- Time limit to respond
- 20 days from the Amex chargeback or inquiry in the US (your processor's deadline may be earlier); no reply means a "No Reply" chargeback
- Typical evidence
- Proof the merchant was not in the program, or an excluded transaction
- Can it be prevented?
- Yes: keep fraud below Amex's tier thresholds
- Who usually wins
- The Cardmember while the merchant is in the program
What PlatformDTC does
PlatformDTC measures each store's dispute rate hourly and alerts before it reaches the card networks' lines, refunds early fraud warnings by default, stops billing reported cards, and can block highest-risk customers by card fingerprint and email so fraud levels stay down.
What it means
Amex can place a merchant in Fraud Full Recourse when it is high risk, its fraud reaches a tier threshold, or it uses deceptive or illegal practices. The program covers disputes up to one year before placement and overrides the fraud liability shift programs.
Amex's low fraud tier is fraud-to-sales of 0.9% or more and at least $25,000 of fraud in a month; the high tier is 1.8% and $50,000. A merchant exits after three months in a row below 0.9% or below $25,000.
Why customers file it
Fraud levels above Amex's thresholds or merchant practices Amex considers high risk.
Evidence that wins
For every Amex code, a credit that directly offsets the disputed charge is also an accepted response.
- Proof the merchant was not in the program when the chargeback was filed
- Proof the transaction is excluded, for example a compliant chip transaction
How to prevent it
- Monitor fraud-to-sales monthly
- Use SafeKey (3-D Secure) and address and CID checks
- Refund fraud warnings quickly and stop billing reported cards
For developers
On Stripe the dispute object arrives with reason "fraudulent" and the card network's own code in payment_method_details.card.network_reason_code; listen for charge.dispute.created and read evidence_details.due_by for the deadline.
American Express uses one letter plus two digits for US and Canada merchants; elsewhere it uses four-digit ISO codes, and each letter code sits under one.
Frequently asked questions
- How do I get out of Fraud Full Recourse?
- Stay below 0.9% fraud-to-sales, or below $25,000 of fraud a month, for three months in a row.
- Can I request a reversal on FR2?
- No. Under Fraud Full Recourse Amex can charge back fraud disputes with no right for the merchant to request a reversal.
Sources
Related
- FR4 — The merchant is in Amex's Immediate Chargeback Program, so disputes skip the inquiry stage.
- F29 — The Cardmember says they did not make an online, phone or mail order purchase.
- FR6 — Disputes below a set amount are charged back immediately with no inquiry first.
- P01 — The card number submitted does not belong to any American Express account.
- P03 — A refund was processed as a charge, so the Cardmember was billed instead of credited.
- P04 — A charge was processed as a credit by mistake.
- P05 — The amount charged differs from the amount on the Cardmember's receipt.