Visa chargeback reason code 11.2: Declined Authorization occurs when a transaction is processed despite receiving a declined authorization response from the card issuer. This can happen for various reasons, such as:
- Merchant Error: The merchant may have accidentally processed a transaction that was declined.
- System Error: A technical issue in the payment processing system might cause a declined transaction to be processed.
- Authorization Override: The merchant manually overrides the authorization decline and processes the transaction.
Causes
- Merchant Error: Mistakes in handling the transaction, such as overriding the decline.
- System Error: Issues with the payment gateway or point-of-sale system.
- Fraud: Deliberate processing of declined transactions to complete fraudulent purchases.
Resolution Time Frame
- For Consumers: Consumers typically have 120 calendar days from the transaction processing date to file a chargeback claim.
- For Merchants: Merchants have 30 calendar days to respond to a chargeback notice once it is received.
Prevention and Mitigation
- Ensure Proper Training: Train employees on the importance of not overriding declined transactions.
- Use Reliable Systems: Ensure that your payment processing systems are up-to-date and functioning correctly.
- Monitor Transactions: Regularly monitor and audit transactions to identify and correct any errors promptly.
- Clear Policies: Establish clear policies for handling declined transactions and ensure all staff are aware of these policies.
- Contact Issuer: If you receive a decline, contact the card issuer for more details before attempting to process the transaction again.
- Fraud Detection Tools: Utilize fraud detection and prevention tools to identify potentially fraudulent transactions before processing.
Steps to Resolve a Chargeback
- Gather Documentation: Collect all relevant documentation, such as receipts, authorization logs, and communication with the cardholder.
- Submit Evidence: Provide evidence that the transaction was authorized, or explain why the transaction was processed despite the decline.
- Respond Promptly: Ensure you respond within the 30-day window to dispute the chargeback.
