Visa Chargeback Reason Code 11.2: Declined Authorization

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:

1. Merchant Error: The merchant may have accidentally processed a transaction that was declined.
2. System Error: A technical issue in the payment processing system might cause a declined transaction to be processed.
3. Authorization Override: The merchant manually overrides the authorization decline and processes the transaction.

Causes

1. Merchant Error: Mistakes in handling the transaction, such as overriding the decline.
2. System Error: Issues with the payment gateway or point-of-sale system.
3. 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

1. Ensure Proper Training: Train employees on the importance of not overriding declined transactions.
2. Use Reliable Systems: Ensure that your payment processing systems are up-to-date and functioning correctly.
3. Monitor Transactions: Regularly monitor and audit transactions to identify and correct any errors promptly.
4. Clear Policies: Establish clear policies for handling declined transactions and ensure all staff are aware of these policies.
5. Contact Issuer: If you receive a decline, contact the card issuer for more details before attempting to process the transaction again.
6. Fraud Detection Tools: Utilize fraud detection and prevention tools to identify potentially fraudulent transactions before processing.

Steps to Resolve a Chargeback

1. Gather Documentation: Collect all relevant documentation, such as receipts, authorization logs, and communication with the cardholder.
2. Submit Evidence: Provide evidence that the transaction was authorized, or explain why the transaction was processed despite the decline.
3. Respond Promptly: Ensure you respond within the 30-day window to dispute the chargeback.