11.3 – No Authorization/Late Presentment

DESCRIPTION

Why did I receive a chargeback with reason code 11.3?

You received this chargeback for one of two reasons. Either you were supposed to submit the transaction for authorisation but you didn’t, or you didn’t process the transaction within the acceptable time limit.

NOTE: Visa recently retired reason code 12.1. Late presentment issues are now combined with authorisation issues in reason code 11.3.

There are additional causes related to ATM transactions. Reach out to our team if those are applicable to your business — we’d be happy to explain.

Need help managing Visa 11.3 chargebacks?

Let AltoShield help you create a comprehensive chargeback management strategy that can lower risk, reduce costs, boost approvals, and improve processing sustainability.

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 chargebacks caused by authorisation errors.

ISSUER TIME LIMIT

How long can the issuer wait to file a chargeback with Visa reason code 11.3?

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

If the dispute is related to an ATM transaction, the chargeback must be filed within 75 days of the adjustment date.

VALIDITY

What would make a Visa 11.3 chargeback invalid?

An issuer is not allowed to use reason code 11.3 if the transaction was a mobile push payment.

A chargeback is also invalid for merchants with the following MCCs — even if authorisation was required.

• 3000 – 3350 (airlines and air carriers)
• 4111 (local and suburban commuter passenger transportation, including ferries)
• 4112 (passenger railways)
• 4131 (bus lines)
• 4511 (airlines and air carriers not elsewhere classified)

In Europe, a chargeback with 11.3 is invalid if the transaction was processed with a Visa Drive Card and the MCC is either 4784 (tolls and bridge fees) or 7523 (parking lots, meters, and garages).

SUPPORTING DOCUMENTS

Can I fight a chargeback with reason code 11.3?

Yes. You can fight a chargeback with this reason code if you have any of the following:

• 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 date in the clearing record was incorrect and a valid authorisation was obtained.
• Evidence that disproves the late presentment claim and shows the acquirer did obtain the required authorisation — such as a transaction receipt or other record with the transaction date

If the disputed transaction had special authorisation procedures, provide evidence of all the following:

• The first authorisation request included the estimated authorisation request indicator.
• The subsequent authorisation requests included the incremental authorisation request indicator.
• The same transaction identifier was used in all authorisation requests.
• The clearing record was submitted within the allotted time period.
• The date the transaction was initiated
• The date the transaction was completed
• The dates, authorised amounts, and authorisation codes for all approved authorisations

WORKFLOW

What Visa workflow do I use to respond to a chargeback with reason code 11.3?

Visa reason code 11.3 is managed with the allocation workflow.

If you want to respond to a chargeback with this reason code, you’ll use the pre-arbitration process. Create a chargeback rebuttal letter (you can use our rebuttal letter templates) and submit it with any of the supporting documents listed above.

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 prevent chargebacks like this in the future?

Here are steps you can take to prevent 11.3 chargebacks.

• Always send an authorisation request before processing a transaction if the amount is above your floor limit.
• If you process transactions with multiple authorisations, make sure you fully understand Visa’s rules and regulations.
• Always process transactions within the required timeframes.

Timelines vary slightly in the following countries: India, Japan, Malaysia, Nepal, and Argentina.

If you’d like to learn more about rules governing the authorisation process, check our detailed guide.