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Visa Chargeback Reason Code 11.3: No Authorization

Visa chargeback reason code 11.3: No Authorization, is used when a transaction is processed without the cardholder’s authorization or if the authorization request was declined by the issuer but the transaction was still completed.

Causes of Chargeback Code 11.3

  1. Lack of Authorization: The transaction was completed without an authorization from the card issuer.
  2. Expired Authorization: The authorization was obtained but not used within the time frame specified by Visa (typically 7-10 days).
  3. Misuse of Declined Authorization: The authorization was declined, yet the merchant processed the transaction anyway.
  4. Fraudulent Transactions: The cardholder disputes a transaction as unauthorized because it was made fraudulently.

Resolution Time Frame

  • Consumers: Cardholders typically have up to 75 calendar days from the transaction processing date to dispute a charge under this reason code.
  • Merchants: After receiving a chargeback notification, merchants generally have 20 days to respond with evidence to dispute the chargeback.

Preventive Measures

  1. Obtain Proper Authorization: Always ensure that an authorization code is received for every transaction.
  2. Monitor Expiration of Authorizations: Use the authorization within the valid time frame. If the transaction is delayed, request a new authorization.
  3. Handle Declines Appropriately: Do not complete transactions if the authorization request is declined. Instead, ask for another form of payment.
  4. Use AVS and CVV Checks: Implement Address Verification Service (AVS) and Card Verification Value (CVV) checks to verify the cardholder’s information.
  5. Update Fraud Detection Tools: Utilize advanced fraud detection and prevention tools to identify and prevent potentially fraudulent transactions.
  6. Train Staff: Ensure that your employees understand the importance of obtaining proper authorizations and the consequences of ignoring declined transactions.

Mitigation Steps

  1. Keep Detailed Records: Maintain comprehensive transaction records, including authorizations and communications with customers.
  2. Provide Clear Receipts: Ensure that transaction receipts clearly show the date, amount, and authorization code.
  3. Respond Promptly to Chargebacks: Gather and submit all relevant documentation, such as proof of authorization and customer communications, within the allowed time frame.
  4. Communicate with the Customer: If possible, resolve the issue directly with the customer before it escalates to a chargeback.
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