My Merchant Account Blog

Visa Chargeback Reason Code 71 - Declined Authorization

Thursday, December 01, 2011

The card issuer received a transaction for which authorization had been declined.

Most Common Causes

The merchant or service establishment attempted to circumvent or override a declined authorization using one of the following methods:

• Forced posting. After a decline or card pickup response, the merchant forced the transaction through without attempting another authorization request.
• Multiple authorization attempts. After an initial authorization decline, the merchant re-swiped the card one or more times until the transaction was authorized. In this situation, authorization might occur if the card issuer’s authorization system times out or becomes unavailable, and the transaction is forwarded to Visa.
• Alternative authorization method. The merchant swiped or dipped the card at a point-of-sale terminal, and the authorization was declined. The merchant then resubmitted the transaction by key entry or called in a voice authorization and received an approval.

Possible Remedy

Transaction Was Authorized

If you obtained an authorization approval code, inform your acquirer of the transaction date and amount.

No Remedy

Transaction Was Counterfeit

If the transaction was counterfeit, accept the chargeback.

Preventative Measures

Obtain Authorization

Obtain an authorization before completing transactions. With most point of sale terminals, an authorization request is sent automatically when the card is swiped or dipped and the dollar amount entered. If your terminal also has a printer, a receipt is printed if the transaction is approved and not printed if the transaction is declined.

Alternatives if Terminal Cannot Read Chip Card

If the terminal is unable to read a chip card, you can attempt to swipe or key-enter the transaction given that proper fallback indicators are provided to the issuer for approval.

Staff Awareness of Authorization Policy

Ensure that all sales staff knows your establishment’s authorization policy. Inform staff that in the event of a declined transaction, they should immediately stop the transaction and ask the customer for another Visa card or other form of payment.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

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