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What Is The American Express Chargeback Reason Code A02 – No Valid Authorization
American Express chargeback reason code A02 – No Valid Authorization is used when a cardholder disputes a charge because the merchant didn't get proper authorization for the transaction. This means the charge was processed without approval from American Express, which checks that the card is valid and has enough funds. If you're a merchant dealing with this chargeback, you'll need to review your records, gather proof of authorization or explain the mistake, and submit this evidence to American Express. The resolution process usually takes about 40 to 60 days, ensuring a fair review and decision.
Common Causes Of American Express' A02 – No Valid Authorization
Skipped Authorization: The merchant might have skipped the authorization step, either intentionally or by mistake.
Expired Authorization: The authorization was obtained but expired before the transaction was processed.
Partial Authorization: The transaction was partially authorized, but the full amount was not approved.
Technical Issues: Problems with the payment processing system could result in transactions being processed without valid authorization.
Example Scenario of A02 – No Valid Authorization
Imagine you run a retail store, and a customer makes a purchase. Due to a busy day, the authorization step is skipped, and the transaction is processed without approval from American Express. The customer later disputes the charge, leading to a chargeback under reason code A02 – No Valid Authorization.
To handle this, you would review your transaction records, gather any relevant documentation, and submit this evidence to American Express. If the transaction was indeed not authorized, you might need to issue a refund to resolve the dispute.
Resolution Time Frame for American Express Chargeback Reason Code A02 – No Valid Authorization
The resolution time frame for American Express chargeback code A02 – No Valid Authorization typically follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction due to a lack of valid authorization, American Express initiates the chargeback process. This usually happens shortly after the cardholder reports the issue.
Merchant Response Time: Once the chargeback is issued, the merchant is notified and given an opportunity to respond. American Express generally allows merchants up to 20 days to gather and submit evidence to support their case. This evidence might include authorization logs, transaction records, sales receipts, and any communication with the cardholder.
Review and Decision: After the merchant submits their evidence, American Express reviews the information provided. This review period typically takes around 20-30 days. During this time, American Express assesses the validity of the merchant’s evidence and determines whether the chargeback should be reversed or upheld.
Final Resolution: The entire process, from the initial dispute to the final decision, can take anywhere from 40 to 60 days. If the merchant’s evidence shows that a valid authorization was obtained or explains the lack of authorization satisfactorily, the chargeback may be reversed. If the evidence supports the cardholder’s claim that there was no valid authorization, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code A02 – No Valid Authorization
To minimize these disputes, consider these proactive measures:
Always Obtain Authorization: Ensure every transaction goes through the proper authorization process before being processed.
Monitor Authorization Expiry: Be aware of the authorization time limits and make sure transactions are completed within the authorized timeframe.
Accurate Processing: Train your staff to accurately process transactions and double-check authorizations to prevent mistakes.
System Checks: Regularly check and maintain your payment processing systems to ensure they handle authorizations correctly.
How to Fix Chargeback Reason Code A02 – No Valid Authorization
If you receive a chargeback under code A02, here’s what you should do:
Review Transaction Details: Verify the details of the disputed transaction, including whether a valid authorization was obtained and recorded.
Gather Documentation: Collect all relevant documents that support your case. This might include authorization logs, transaction records, sales receipts, and any communication with the cardholder.
Submit Evidence: Provide this evidence to American Express promptly. Clearly explain the situation and provide documentation showing that the transaction was authorized correctly or provide an explanation for the lack of authorization.
Resolve the Issue: If the transaction was not authorized properly, acknowledge the mistake and, if necessary, process a refund for the cardholder to resolve the dispute.
