Understanding American Express Chargeback Reason Code C28: Cancelled Recurring Billing

American Express Reason Code C28 applies when a cardholder cancels a recurring payment (or tries to cancel) but is charged again. It commonly affects subscription and membership services. The dispute may follow a failed cancellation, a delay in processing, or confusion around trial terms and renewals.

Key Takeaways

• What it means: The cardholder says they cancelled recurring billing or could not cancel, yet were charged.
• Causes: Delays in processing cancellations. Lack of clarity around the cancellation process. Friendly fraud.
• How to respond: Show policy acceptance, timely cancellation logs, usage records, or proof of credit issued.
• How to prevent: Offer simple cancellations, confirm requests, send reminders, and maintain clear, fair terms.

What is an American Express Reason Code C28 Chargeback?

Reason Code C28 sits under American Express “Card Member Disputes”. It is a challenge to an ongoing subscription charge where the cardholder believes they should not have been billed following a cancelled, or attempted-to-cancel, recurring transaction. This code often appears with subscription models billed monthly, quarterly, or annually. It also covers situations where a customer says there was no straightforward way to cancel. In addition, it can apply when an introductory offer converts to paid service and the cardholder says the terms or reminders were not clear.

American Express, or the issuer, may first ask for more information about the transaction. That request can give merchants a chance to explain what it means, show that the service was cancelled on time, or prove that the cardholder consented to the plan. If the dispute proceeds, you will need to respond within the set time limit with compelling evidence. Clear sign-up terms, simple cancellation routes, and visible reminders reduce the risk of C28 disputes. They also show issuers that your process meets network standards.

Primary Causes for a Code C28 Chargeback

Most code C28 disputes stem from errors in cancellation handling, misunderstandings, or misuse of the chargeback process. A customer asks to cancel before the next billing date, but the request is not actioned in time. The charge then posts, and the customer complains. A similar pattern appears when a refund is issued, yet the next cycle is billed before the credit shows on the statement. Lack of clarity around terms is another frequent problem. Some subscribers believe that each renewal requires a new approval. Others miss that a free trial rolls into a paid plan. If terms are hard to read, or reminders are not sent before a trial converts, disputes tend to follow. 

Another cause is when customers try to cancel but struggle to find a simple route. If the cancellation link is hard to find, the phone line is busy, or emails are not answered, customers may turn to their issuer for resolution. Late cancellations are common as well. A customer cancels after renewal, does not plan to use the service, and challenges the charge. Issuers will review the renewal date against the cancellation timestamp. Finally, there is also friendly fraud. A family member may have set up the plan, or the buyer changes their mind and claims the charge was not authorised.

Time Limit for Disputing an American Express Reason Code C28 Chargeback

The time limit for merchants to respond to an American Express Reason Code C28 chargeback is typically 20 days from the date of the chargeback notification. Act quickly. Gather records that show the customer agreed to recurring billing terms, could easily cancel, and received reminders where applicable. If you processed a cancellation on time, provide timestamps from your systems. If the customer continued to use the service after the billing date, include access or usage logs. If you issued a credit, submit evidence of the credit and its posting date.

Consider setting an internal service level so your team reviews all C28 cases within one business day. The faster you assemble and submit evidence, the better your odds. Missing the time limit can result in a lost case by default, with fees, write‑offs, and operational time wasted.

What C28 Means for Consumers & Issuers

For consumers, C28 protects against having to pay for a service once it has already been cancelled correctly. If a cancellation is made in time, they should not be billed for the next period. If they are, then reason code C28 allows them to dispute any payments taken after the cancellation via their issuer. 

For issuers, C28 is about fair handling and consistent application of network rules. Issuers review each case on its merits. They may request more details from the merchant, such as cancellation logs, proof of policy acceptance, or service usage. They will weigh cardholder statements against merchant records and decide if the charge stands or should be reversed.

Issuers expect merchants to provide straightforward cancellation options and transparent terms, especially for introductory offers. They also expect records showing consent and reminders. When the evidence supports the merchant, issuers may decline the dispute. When the evidence shows late processing or unclear terms, issuers may side with the cardholder. The shared goal is accurate billing and a fair outcome, based on facts.

What C28 Means for Merchants

Recurring billing drives predictable revenue, but it also creates risk. A single missed or delayed cancellation can lead to a dispute and a chargeback. Fees and lost product access can follow, along with extra staff time. Repeated cases can raise your dispute ratio and harm your standing with American Express.

Receiving one or more C28 chargebacks suggests you need to review your cancellation process. Your checkout flow, terms, cancellation policy, and emails must be simple and prominent. Customers should see renewal timing, price changes, and trial end dates. In account areas and emails, a direct “Cancel” route should be present and functional. After cancellation, the system should stop future billing and confirm the action by email.

Introductory offers need special care. Send written confirmation at enrolment. Before the first paid charge, send a reminder with enough time to cancel. Document consent to terms. Keep logs that are easy to export for disputes. When your records are strong, issuers are more likely to support your case.

How to Respond to a Code C28 Chargeback

Start by checking the timeline. Did the cardholder submit a cancellation before the next billing date? If yes, show the exact date and time the request arrived and when you processed it. If you processed late, include proof of a full or partial credit. Provide your cancellation policy and prove the customer agreed to it at sign‑up. Screenshots of your checkout page, a copy of the receipt, and acceptance logs help. Show that the policy was easy to find and that a practical cancellation route existed.

If the customer continued to use the service after the billing date, include access records showing dates and times. This can refute the claim that the charge was not valid. For introductory offers, add copies of enrolment confirmations and reminder notices sent ahead of conversion, along with proof of express consent to the offer’s terms. Organise your package with a brief cover letter that explains what happened and how your evidence addresses each point. Submit within the 20‑day time limit. Keep a copy of everything you send. Clear, dated records are your best defence.

Proactive Prevention: The Ultimate Defence

Prevention reduces disputes and helps protect revenue. Start by making cancellation simple: a clear button in the account area, a short online form, and a working email flow. Confirm every cancellation by email and stop future billing immediately. If a customer is due a credit, submit it the same day and tell them when it will appear.

Use reminders. For trials and long cycles, send a reminder ahead of the next billing, with the date, amount, and a direct link to cancel. Show terms in plain language at checkout and require active consent. Keep detailed logs of policy acceptance, cancellation timestamps, and service usage. You can also try out chargeback alerts to get early notice of incoming disputes.