Understanding American Express Chargeback Reason Code C14: Paid By Other Means

American Express Reason Code C14 means the cardholder says the transaction was paid in a different way, yet their Amex card was charged as well. It often involves card-on-file errors, duplicate billing, or third-party payments. This page explains what it means, causes, the time limit to respond, and how to respond to or fight and prevent these disputes.

Key Takeaways

• What it means: The card was charged even though the purchase was paid by another method.
• Causes: Card-on-file mischarges. Duplicate billing. Third-party payments. 
• How to respond: Show proof you had consent to charge the card, or that you already issued a refund.
• How to prevent: Verify payment method changes. Cancel open authorisations. Keep clear records. Issue credits quickly.

What is an American Express Reason Code C14 Chargeback?

Reason Code C14, “Paid By Other Means,” applies when a cardholder claims a purchase was already paid using a different method, such as cash, a gift card, a bank transfer, or a third-party payer, yet their American Express card was also charged. In other words, the customer says there is no valid reason for the card transaction because the bill was settled elsewhere.

What is a common scenario? A customer has a card on file for convenience. For a one-off purchase, they choose to pay with a gift card. Due to a misstep at the till or in the system, the gift card is accepted but the card-on-file is charged as well. Another example is travel or hospitality. A guest’s room is covered by a company or a companion, but the merchant still bills incidental charges to the guest’s Amex card. In some cases, a duplicate card charge is created by mistake and no prompt credit is issued.

Primary Causes for a Code C14 Chargeback

There are several recurring causes behind C14 disputes. The first is a card-on-file mischarge. If a customer has stored credentials and later pays for a specific order with a different method, an automated or manual process may still route the charge to the stored card. Subscription platforms and hospitality folios are common touchpoints for this error.

The second cause is duplicate processing. A merchant might run a card payment and then also accept cash or a gift card, but forget to void or reverse the card transaction. If the duplicate is not identified and a timely credit is not processed, the cardholder may file a dispute.

Third, third-party payment expectations often trigger C14. Examples include corporate travel where a company settles the bill, insurance paying for a repair, or a friend covering a shared expense. If roles are unclear or if the third party pays a different invoice than the one the cardholder disputes, the cardholder can argue their card should not have been billed.

Finally, friendly fraud can play a part. A cardholder may claim they paid by other means when no such payment exists, or when the alternate payment relates to a different order. Clear documentation of who paid what, and when, is key to distinguishing misunderstanding from misuse.

Time Limit for Disputing an American Express Reason Code C14 Chargeback

American Express sets a 20-day time limit for the acquirer or merchant to respond to a C14 chargeback. This is a hard deadline that starts when American Express initiates the dispute. Because your acquirer needs time to receive the case, review your material, and submit it back to Amex, your actual working window can be short. Often it's just a few days.

Failing to respond within this strict deadline almost always leads to the merchant automatically losing the dispute and the associated funds. To avoid that outcome, assign a single owner to each case. Use a checklist for evidence, and submit well within your acquirer’s internal cutoff. Fast, well-organised responses help issuers assess the facts and give you the best chance of a reversal.

What C14 Means for Consumers & Issuers

For consumers, C14 reflects a simple statement: “I paid another way; you should not have charged my card.” Common triggers include paying with cash at a checkout after presenting a card, using a gift card in-store, or having a stay covered by an employer. Before filing a dispute, the best step is to contact the merchant with receipts for the alternate payment. In many cases, a prompt correction or credit can be issued without a formal chargeback.

For issuers, C14 is a claim about payment liability rather than product quality or fraud. Issuers look for evidence that the cardholder consented to the card charge. Or, that the alternate payment the cardholder cites actually relates to this specific transaction. They compare dates, amounts, invoice numbers, and delivery or folio records. Patterns matter as well. A merchant with repeated C14s may have weak void-and-refund controls. A cardholder with repeated “paid by other means” claims may need education on receipts and what it means to authorise a card.

What C14 Means for Merchants

A C14 chargeback leads to the immediate reversal of the transaction's revenue from the merchant's account. In addition to the lost sale amount, merchants are typically charged a separate chargeback fee by their payment processor. Each chargeback negatively impacts a merchant's chargeback-to-transaction ratio, which can affect their relationship with their acquirer. It forces the business to dedicate time and resources to investigating the claim and gathering evidence for a possible rebuttal. The chargeback can signal a potential flaw in the point-of-sale or billing procedures that needs to be addressed. To recover the funds, the merchant must engage in the representment process and successfully prove the charge was valid.

Focus on the moments where payment method selection can change. At the till, when a customer switches from card to cash, void the card authorisation and close the open transaction. Online, when a customer uses a gift card, vouchers, or an e-wallet, your checkout must map payments correctly and avoid charging a stored card by default. In travel and hospitality, keep clear folios that separate room, incidentals, and third-party charges, with signed acknowledgements.

How to Respond to a Code C14 Chargeback

Start by identifying the exact claim. Is the cardholder saying they paid cash, used a gift card, or that a company or insurer was responsible? Your response must show why the card charge was valid, or how you have already corrected an error.

If the card charge was authorised and appropriate, provide the signed sales draft or receipt, a copy of the order confirmation or folio, and evidence that the cardholder agreed to use the Amex card for this transaction. If there was a third-party payer for a different invoice, show that the alternate payment relates to another order by including matching invoice numbers, dates, and amounts. Shipment or service records can also prove the disputed charge is separate.

If you made an error but have issued a credit, include proof of the credit with the amount, date, and reference. A short cover letter helps: state what happened, attach evidence in order, and explain how the documents show consent or correction.

Proactive Prevention: The Ultimate Defence

Prevention starts with clear payment handling. When a customer switches payment methods, cancel any open card authorisation and document the alternate payment. For ecommerce, map gift cards, vouchers, and e-wallets correctly, and do not default to charging cards on file. In hotels, car hire, and healthcare, separate third-party and cardholder liabilities and have the cardholder sign for incidentals. Process credits quickly and confirm them in writing so expectations are set.

Train staff to verify receipts before batch submission, and reconcile daily to catch duplicates. Keep tidy records of cash and gift card payments, including receipt numbers. For early warning of inbound chargebacks, try out Chargeback.io. These alerts can give you time to contact the customer and issue a credit before a chargeback becomes final.