1. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 AMERICAN EXPRESS: Merchant Dispute Process Emily Eberhard Chris O’Connell David Sweet Terra Christensen Eric Housh Introduction

2. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Agenda Introduction

3. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Inquiry Process Overview Customer Questions Charge AMEX Attempts to Resolve AMEX Sends Inquiry AMEX Notifies Resolution Resolves In-House Merchant No Reply Cannot Resolve In-House Provides Support Notifies Cardmember of Resolution Adjusts Merchant Issues Credit to Cardmember Merchant Issues Credit to Cardmember

4. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Service Overview Merchant Receives Chargeback from AMEX Merchant Disputes Chargebac k in Writing (sent to CMS or Fraud) CMS or Fraud reviews Dispute Merchant Receives Notificatio n in Writing of Dispute Decision Merchant calls ES Ops Dispute Chargeback Merchant calls ES Ops to check status Merchant calls ES to give feedback on process Overview

5. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 SERVICE STRATEGY  Customers  Competition  Services Offered –Blueprint of the Basic Service  Customers Evaluation of AMEX AMEX Strategy

6. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Customer Segments Strategic Relations Key Operational Accounts Small Business AMEX Strategy

7. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Service Blueprint AMEX Strategy

8. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Service Strategy Physical Evidence Customer Action Onstage Evidence Backstage Actions Support Inquiry Letter Opens/reads Chargeback Letter Letter generated Automated Mail Generation System VR Call ES in AZ ES rep advises merchant to fax/mail support Telephone Faxes/Mails Supporting Documentation to FL Fax Reply Support Documentation Chargeback Procedure and Policy Guide Refers to CB P&P Guide for advice Visits website for help or support Mail/ Fax Received Mail/Fax Imaged and Sorted Image Routed to CMS ES or CMS rep reviews case ES requests image Image Delivered Decision Made Merchant Notified only if decision favors CM Fax (merch) Imaging Rep training DHS Preference ES rep provides help/ updates on status Letter notifying of outcome OMS CMS Support Docs CLU

9. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Merchant Criteria Outcome of Decision AMEX Strategy Comparison with Competitors Understanding of Process and Roles Timeliness Perceived Fairness Status Updates Promises Implicit and Explicit

10. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Gap Analysis  Gap 1—Merchant Expectations  Gap 2—Merchant Driven Design  Gap 3—Service Delivery  Gap 4—Delivering Promises

11. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Merchant Expectations Company Perceptions of Merchant Expectations Gap 1 AMEX-Merchant Expectations  Market Research  Merchant Communication  Market Segmentation  Service Recovery Gap Analysis

12. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Merchant-Driven Service Designs and Standards Management Perceptions of Merchant Expectations Gap 2 Merchant-Driven Design  Technology  Process Design Gap Analysis

13. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Service Delivery Merchant-Driven Service Design and Standards Gap 3 Service Delivery  Service Provider Role  Merchant Role  Electronic Channel  Managing Demand Gap Analysis

14. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Service Delivery External Communications to Merchants Gap 4 Delivering Promises  Integrated Marketing Communications  Managing Expectations  Over-Promising  Horizontal Communications Gap Analysis

15. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Services Triangle AMEX Merchants Employees Making Promises Enabling Promises Keeping Promises Macro Strategies

16. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Enabling Promises AMEX Merchants Employees Macro Strategies Employee Empowerment,E ducation, & Technology

17. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Making Promises AMEX Merchants Employees Aligning Marketing Vehicles, Merchant Education, Good Promises Macro Strategies

18. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Keeping Promises AMEX Merchants Employees Chargeback Gate, Faxback/Email, Call Program, OMS Education Macro Strategies

19. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Macro Strategies  Strategy 1—Horizontal Communication  Strategy 2—Internal Processes  Strategy 3—Merchant Education  Strategy 4—Physical Evidence Macro Strategies

20. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Macro-Strategy 1:  Standard Technologies –Scanned Evidence  Educate and Empower Reps –Florida/Phoenix Communication –Stringent Note-Taking Requirements Macro Strategies

21. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Macro-Strategy 2:  Refine Internal Processes to Intensify Merchant Focus Macro Strategies

22. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Refine Internal Processes  Solicit, Review, and Action Subjective Feedback  Complete Communication Loops within Service Blueprint  Manage Capacity and Demand More Effectively Macro Strategies

23. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Subjective Feedback Macro Strategies

24. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Complete Communication Loops  Right Fax  Email and OMS Merchant Input AMEX confirmation / response Macro Strategies

25. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Manage Capacity  Prioritization of Merchant Calls/ Ranking  Chargeback Gate Macro Strategies

26. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Macro Strategy 3:  Educate and Empower Merchants through SSTs Macro Strategies

27. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Empower  Drive to the OMS –Marketing –Streamlining –Adding Value –Financial Incentives  Impact –Lower Call Volume –Lower Employee related costs –Increased customer roles Macro Strategies

28. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Educate  Standardized/ Process Level  Impact –Increased process understanding –Increased perception of fairness Macro Strategies

29. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Drive Demand To OMS Excellent Quality and Value Financial Bonds Social Bonds Structural Bonds Customization Bonds Shared Processes and Equipment Integrated Information Systems Fee Avoidance Long Term Short term Differentiated Services Macro Strategies

30. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Macro-Strategy 4:  Refine and Standardize Physical Evidence Macro Strategies

31. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 External Physical Evidence  Standardization and Clarity of Verbiage  Disclaimers, Return and Cancellation Policies  Initial Inquiry Letter Macro Strategies

32. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Aligning Verbiage  Consistency in Publications From Manuals to Website  Improved Merchant Satisfaction and Handling Efficiencies Macro Strategies

33. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Prevent Over-Promising  Chargeback Prevention Strategy  Online Over-promising of Services Macro Strategies

34. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 SUMMARY Summary

35. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Perceived Service Expected Service COMPANY GAP 1 GAP 2 GAP 3 External Communications to Customers GAP 4 Service Delivery Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Align Horizontal Communication Across Branches and Units Entirety Merchant Gap External Communications to Merchants Merchant-Driven Service Designs and Standards Company Perceptions of Merchant Expectations

36. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Perceived Service Expected Service COMPANY GAP 1 GAP 2 GAP 3 External Communications to Customers GAP 4 Service Delivery Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Refine Internal Processes to Intensify Merchant Focus Document Submittal Merchant education Loop Communication Alignment of external Communication Over-Promising Communication Between Management and Customers Merchant Gap External Communications to Merchants Merchant-Driven Service Designs and Standards Company Perceptions of Merchant Expectations

37. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Perceived Service Expected Service COMPANY GAP 1 GAP 2 GAP 3 External Communications to Customers GAP 4 Service Delivery Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Educate and Empower Merchants Through Self Service Technologies Document Submittal Entirety Alignment of external Communication Over-Promising Communication Between Management and Customers Merchant Gap External Communications to Merchants Merchant-Driven Service Designs and Standards Company Perceptions of Merchant Expectations

38. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 Perceived Service Expected Service Merchant COMPANY Merchant Gap GAP 1 GAP 2 GAP 3 External Communications to Merchants GAP 4 Service Delivery Merchant-Driven Service Designs and Standards Company Perceptions of Merchant Expectations Confirmation ability Merchant education Role ambiguity Alignment of external Communication Over-Promising Horizontal Communication Refine and Standardize Physical Evidence

39. 3712 330023 46554 Overview AMEX Service Gap Analysis Macro Strategies Summary Introduction 3712 330023 46554 AMEX Macro Goals  Objective and Standardized Processes  Increased Handling Efficiencies  Lower Process-Related Costs  Reduced Caseload and Repeat Calls  Improve Merchant and ES Representative Satisfaction Summary