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Discover Chargeback Reason Code AT – Authorization Noncompliance

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What Is The Discover Chargeback Reason Code AT – Authorization Noncompliance

Discover chargeback reason code AT – Authorization Noncompliance is used when a cardholder disputes a transaction because the merchant didn't follow proper authorization procedures. This means the merchant either didn't get authorization for the transaction, used an expired authorization, or processed a different amount than what was authorized. If you're a merchant facing this chargeback, you'll need to check your records, gather proof that proper authorization was obtained, and submit this evidence to Discover. The resolution process usually takes about 60 to 90 days, ensuring a thorough review and fair decision.

Common Causes Of Discovers' AT – Authorization Noncompliance

  • No Authorization: The merchant did not request authorization for the transaction at all.

  • Expired Authorization: The merchant obtained authorization, but it was not within the required timeframe or it expired before the transaction was completed.

  • Incorrect Amount: The authorization was obtained for an amount different from the final transaction amount.

Example Scenario of AT – Authorization Noncompliance

Imagine you run a hotel, and a guest stays for an extended period. You obtain authorization at check-in, but due to additional charges during their stay, the final amount is higher. If you fail to get a new authorization for the increased amount and the guest disputes the charge, Discover might issue a chargeback under reason code AT – Authorization Noncompliance.

To handle this, you would review your authorization logs, gather any relevant transaction records, and submit this evidence to Discover. Additionally, you would update your procedures to ensure new authorizations are obtained for any additional charges.

Resolution Time Frame for Discover Chargeback Reason Code AT – Authorization Noncompliance

The resolution time frame for Discover chargeback code AT – Authorization Noncompliance generally follows a structured process. Here’s an outline of the typical timeline:

  1. Chargeback Filing: When a cardholder disputes a transaction due to authorization noncompliance, Discover initiates the chargeback process. This typically occurs shortly after the cardholder reports the issue.

  2. Merchant Response Time: Once the chargeback is issued, the merchant is notified and given an opportunity to respond. Discover generally allows merchants up to 30 days to gather and submit evidence to support their case. This evidence might include authorization logs, transaction receipts, and any other relevant documentation.

  3. Review and Decision: After the merchant submits their evidence, Discover reviews the information provided. This review period typically takes around 30-45 days. During this time, Discover assesses the validity of the merchant’s evidence and determines whether the chargeback should be reversed or upheld.

  4. Final Resolution: The entire process, from the initial dispute to the final decision, can take anywhere from 60 to 90 days. If the merchant’s evidence shows that proper authorization was obtained, the chargeback may be reversed. If the evidence supports the cardholder’s claim of noncompliance, the chargeback stands, and the cardholder keeps the funds.

How to Avoid Chargeback Reason Code AT – Authorization Noncompliance

To minimize these disputes, consider these proactive measures:

  1. Always Obtain Authorization: Ensure that every transaction goes through the proper authorization process.

  2. Monitor Authorization Expiry: Be aware of the authorization time limits and make sure transactions are completed within the authorized timeframe.

  3. Match Authorization and Transaction Amounts: Make sure the authorized amount matches the final transaction amount. If there are changes, obtain a new authorization.

How to Fix Chargeback Reason Code AT – Authorization Noncompliance

If you receive a chargeback under code AT, here’s what you should do:

  1. Review Transaction Details: Verify the details of the disputed transaction, including whether proper authorization was obtained and recorded.

  2. Gather Documentation: Collect all relevant documents that can help prove authorization was correctly obtained. This might include authorization logs, transaction receipts, and any communication with the cardholder.

  3. Submit Evidence: Provide this evidence to Discover promptly. Clearly explain the situation and provide documentation showing that the transaction was authorized properly.

  4. Correct Authorization Practices: Review and, if necessary, update your authorization practices to ensure compliance with Discover’s requirements.

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