11.2 – Declined Authorization

DESCRIPTION

Why did I receive a chargeback with reason code 11.2?

You received this chargeback because you submitted an authorisation request and received a “decline” or “pickup” response — but you chose to complete the transaction anyway.

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CLASSIFICATION

How does Visa classify this type of dispute?

Visa reason codes are divided into four categories: fraud, authorisation errors, processing errors, and consumer disputes.

Reason codes that start with 11 are in the authorisation errors category.

ISSUER TIME LIMIT

How long can the issuer wait to file a chargeback with Visa reason code 11.2?

The maximum amount of time that can pass between the transaction processing date and the dispute processing date is 75 calendar days.

VALIDITY

What would make a Visa 11.2 chargeback invalid?

An issuer is not allowed to use Visa reason code 11.2 if any of the following characteristics are applicable:

• The transaction was an ATM cash disbursement.
• The transaction was a mobile push payment.
• The transaction later received an “approve” authorisation response after the initial “decline” response was received for the same purchase. This does not apply to transactions that initially received a “pickup” response.

SUPPORTING DOCUMENTS

Can I fight a chargeback with reason code 11.2?

Yes. You can fight a chargeback with Visa reason code 11.2 as long as you have at least one of the following supporting documents:

• Evidence that the chargeback is invalid. (Note: Your acquirer’s technology should catch these errors and automatically respond on your behalf. If your acquirer doesn’t automatically respond and you receive a chargeback notice, you can challenge the chargeback yourself.)
• Evidence that you issued a credit or reversal to the cardholder’s account before the chargeback was filed.
• Evidence that the transaction was chip-initiated and authorized offline.

If the transaction was for a car rental, cruise, or lodging — where multiple authorisations were obtained — there are additional supporting document options. You can provide proof of all of the following:

• The check-in date, vehicle rental date, or embarkation date
• The check-out date, vehicle return date, or disembarkation date
• The dates, authorisation amounts and authorisation response codes of the approved authorisations

WORKFLOW

What Visa workflow do I use to respond to a chargeback with reason code 11.2?

Visa reason code 11.2 is managed with the allocation workflow.

If you respond to a chargeback with this reason code, you’ll use the pre-arbitration process. Collect the supporting documents listed above, use our rebuttal letter template to explain your case, and submit your complete package for consideration.

ACQUIRER TIME LIMIT

How quickly do I need to file a chargeback response?

Your acquirer must submit your chargeback response within 30 calendar days of the chargeback filing date.

Note: This is the acquirer time limit. The amount of time you, the merchant, have to prepare and submit your response will be much less. Usually, merchant time limits are about 3-20 days. Make sure you know how much time your acquirer allows.

PREVENT

How can I avoid chargebacks like this in the future?

Here are steps you can take to prevent chargebacks with reason code 11.2.

• If you receive a “decline” or “pickup” authorisation response, either terminate the transaction or submit a second authorisation request. Never proceed without authorisation.
• If you process transactions with multiple authorisations, make sure you fully understand Visa’s rules and regulations

Visit our detailed guide to learn more about the authorisation process and how to comply with expectations.