The customer's bank converted the currency, not us. Are we liable?

If you submitted the exact currency and amount the customer agreed to, conversion on the issuing side is not your error. Respond with the confirmed checkout currency and settled amount, which should match.

Does dynamic currency conversion increase P23 risk?

Yes, when the opt-in is unclear. DCC is defensible only with proof the cardmember actively chose their home currency at a disclosed rate, so archive that election per transaction.

American Express · Processing Errors

Reason code P23: Currency Discrepancy

P23 arises when the charge was processed in the wrong currency or with an incorrect conversion, so the amount on the cardmember's statement differs from what they agreed to pay. Cross-border checkouts, dynamic currency conversion, and misconfigured multi-currency accounts are the usual sources.

Issuer filing window

typically 120 days from the charge date

Merchant response window

typically 20 days to respond

Why P23 chargebacks happen

The transaction was submitted in the merchant's local currency after quoting the customer a price in theirs.
Dynamic currency conversion was applied without the cardmember's clear choice, or at an undisclosed rate.
A multi-currency processing account had the wrong settlement currency configured for a storefront.
A conversion rate was applied twice, or a stale rate produced a materially different amount than displayed.

How to fight a P23 chargeback

Provide the checkout record showing the currency and exact amount the cardmember confirmed, matching what was submitted.
For DCC transactions, submit the proof of the cardmember's explicit currency election with disclosed rate and markup.
Show the settlement record aligning currency and amount with the agreement; discrepancies introduced by conversion on the cardmember's side are not your error.
If your configuration genuinely billed the wrong currency, refund the difference at once and document the correction in the response.

How to prevent P23 chargebacks

Display and settle in the same currency the customer confirms, and log that confirmation per order.
If you offer DCC, implement it with an unmistakable opt-in and archived rate disclosures.
Audit currency configuration whenever you add a storefront, region, or MID.
Alert on orders where display currency and settlement currency differ, and block them from batching until resolved.

Frequently asked questions

The customer's bank converted the currency, not us. Are we liable?: If you submitted the exact currency and amount the customer agreed to, conversion on the issuing side is not your error. Respond with the confirmed checkout currency and settled amount, which should match.
Does dynamic currency conversion increase P23 risk?: Yes, when the opt-in is unclear. DCC is defensible only with proof the cardmember actively chose their home currency at a disclosed rate, so archive that election per transaction.

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