Consumer complaint received 2023-03-25
Company: AMERICAN EXPRESS COMPANY
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
Hello - American Express and other credit card companies are taking advantage of small businesses. In order to narrow the focus of my complaint, I will speak only of the issues I have had with American Express at this time. 

It does not appear that credit card companies are using the Fair Credit Billing Act for their standard of initiating chargebacks ( refunds to customers that are taken from my sales without my permission ), and they are unfairly initiating chargebacks on honest, small businesses. This makes the credit card company look great to customers, but they are really just stealing money form small businesses. 

For instance : A customer received my product and installed it incorrectly, resulting in a broken piece. We offered to send her a replacement at no cost. She contacted her credit card company without offering to return the item. The credit card company initiated a chargeback, and the customer still has our item. She has a free product worth {$790.00} at our expense. This is egregious and basically theft. An example of this is order XXXX. 
Chargebacks have occurred to my business due to customers complaining of fraudulent activity ( somebody stealing their credit card number and using it to buy a product ). Why is it the small business responsibility to pay for these issues, rather than the credit card companys responsibility? Small businesses like mine are not responsible for these issues and should not be held accountable. Credit Card companies and their customers need to protect their customers from these activities without stealing from small businesses. I see nothing in the FCBA that puts the responsibility on the small business. Order XXXX in my account is an example of this. 
Chargebacks have occurred when XXXX had a small delay in their shipment. The item was received, but the customer decided he no longer wanted the item. The customer refused to pay for return shipping and an open box penalty, as would have been reasonable, and the credit card company initiated a chargeback and associated {$15.00} charge, even after the customer opened one of the boxes. This is unreasonable. Order XXXX is an example of this. 

American Express is nearly impossible to communicate with. I have given them evidence that my company is not at fault for these issues, and they have only responded by taking money from my account. I contacted American Express via the XXXX, and they refuse to answer direct questions. In fact, they suggest that it is not them that is initiating the chargebacks, and that is a lie. I am sharing American Express ' last two responses ( the first was lost, and was even more deceptive ). The specific responses included are responses to the chargeback associated with order XXXX ( noted in the last bullet above ). 

I am happy to share additional information. This is an issue of fairness to small businesses across this country that are going out of business due aggressive actions by credit card companies that are either illegal or should be illegal.

Company response to consumer: Closed with explanation