By the end of August 2016, merchants will not be held liable for chargebacks for counterfeit fraud when a transaction is under USD 25. Also, by the end of 2016 American Express plans to limit the number of counterfeit fraud chargebacks to a total of 10 per card account.
The card issuer will bear the financial liability for any additional counterfeit fraud transaction that is disputed on a card account after 10 chargebacks. This limit does not prevent a Card Member from disputing additional fraudulent transactions.
An analysis by American Express found that more than 40% of its counterfeit fraud chargebacks in the US are for transactions under USD 25.
The changes announced by American Express will remain in effect until April 2018.
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