Amex C32 — Goods/Services Damaged or Defective: What It Is and How to Respond

Amex C32 is filed when the cardholder received goods that were physically damaged in transit or that were defective — not working, broken, or failing to function as a product of that type should. Unlike C31 (Not as Described), which focuses on the accuracy of the product listing, C32 is specifically about physical condition and functionality. A product that works but looks different from the photo is a C31; a product that arrived broken is a C32.

C32 disputes are particularly challenging because the merchant often cannot independently verify the claimed damage without inspecting the returned item. If you can prove the product was in perfect condition when it left your facility, the dispute becomes about what happened during transit — which is a carrier liability issue, not a merchant liability issue. For goods that were defective from manufacture, the dispute is about quality control and your return policy for defective items.

Common reasons you received this dispute

1. 1Physical item was damaged during shipping (carrier responsibility, not merchant defect)
2. 2Product arrived with a manufacturing defect present before shipment
3. 3Electronic product failed to function on first use
4. 4Product was damaged during return transit (customer returning a previously good item as broken)
5. 5Product deteriorated due to improper storage or age (particularly relevant for food, cosmetics, or time-sensitive goods)

Can you win this dispute?

Evidence checklist

1. ✓️ Required

   Photos or video of the product before shipment: Showing its condition as part of your packing/QC process. This is your most critical C32 evidence.

2. ✓️ Required

   Quality control records: Showing this item passed inspection before dispatch. Even a simple QC checklist with a sign-off timestamp is valuable.

3. ⭐ Strongly recommended

   Shipping packaging photos: Showing adequate protective packaging was used. This supports your position that transit damage is a carrier liability, not a merchant defect.

4. ⭐ Strongly recommended

   For transit damage: shipping insurance claim or carrier damage report: Filing a carrier claim and including the reference demonstrates the damage occurred during delivery and is the carrier’s liability.

5. ◯ If available

   Customer communication showing damage was reported after a period of use: Suggests the item was not damaged at delivery, which is inconsistent with a C32 claim.

How to write your response

Key deadlines

How to prevent this chargeback

1. 1

   Photograph all products before shipping: As part of your standard packing process. This takes seconds per order and is invaluable for C32 defence. Without it, you have no evidence the product left your facility in good condition.

2. 2

   Use adequate protective packaging: A C32 dispute that resulted from insufficient packaging is difficult to defend and entirely preventable. Match packaging to the fragility of the item.

3. 3

   File shipping insurance for high-value items and claim promptly: When transit damage occurs. This protects you financially even if the chargeback is lost, and the claim documentation is valuable C32 evidence.

4. 4

   Ask for photos before processing any return: If a customer reports damage, request photos before issuing a return label. This creates a record of the claimed damage and prevents return of an undamaged item as “broken.”

5. 5

   For electronics, include a setup guide: Many “defective” disputes are actually setup failures that a support email or video call can resolve. Proactive setup guidance reduces C32 disputes before they happen.

Frequently asked questions

Related reason codes