My Merchant Account Blog

Visa Chargeback Reason Code 72 - No Authorization

Thursday, December 01, 2011

The card issuer received a transaction for which authorization was not obtained or authorization was obtained using invalid or incorrect transaction data. For Automated Fuel Dispenser (AFD) transactions, the card issuer may only chargeback the amount exceeding one of the following:

• Amount authorized by the issuer
• For an EMV PIN transaction, US $100, or local currency equivalent, if a Status Check Authorization was obtained
• For all other transactions, US $75 or local currency equivalent, if a Status Check Authorization was obtained
• For a U.S. Domestic Visa Fleet Card transaction, US $150, if a Status Check Authorization was obtained/

Most Common Causes

• The merchant did not obtain an authorization for a transaction or, for cardpresent transactions, obtained it after the transaction date.
• The merchant did not exclude the tip in the authorization amount. The merchant should request an authorization for the known amount, not the transaction amount plus estimated tip.

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 Not Authorized

Accept the chargeback.

Preventative Measures

Obtain Authorization

Obtain an authorization before completing transactions. The authorization request is sent automatically when you swipe the card through a magnetic card reader or insert the card into a chip-reading device*, then enter the dollar amount. A receipt is printed if the transaction is approved; if it is not approved, you will receive a “Decline” (or “Call Center” or “Pick-Up”) message on your point-of-sale terminal.

Make sure the authorization amount is equal to the check amount. Do not include the tip in your authorization request. For example, if the check before tip is US $37.42, the authorization should be for US $37.42.

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.

Point-of-Sale Terminal Programming

Find out from your point-of-sale provider if your authorization system has been properly programmed to authorize only for the check amount before the tip is added.

Magnetic-Stripe Reader Down or Card’s Magnetic Stripe Damaged

If you are unable to get an electronic authorization because your terminal isn’t working or because the card’s magnetic stripe cannot be read, you can request an authorization either by key-entering the transaction or calling your voice authorization center. If the transaction is approved, be sure the approval code is on the sales receipt in the appropriate space; in the case of a voice authorization, you will need to write it on the receipt. You should also imprint the embossed account information from the front of the card on a sales receipt or manual sales receipt form, which the customer should sign.

Terminal Cannot Read the Chip

If the chip-reading device cannot read the chip on the card, it means the card and chip-reading device have no applications in common. In this case, you should follow “fallback” requirements and accept the chip card via standard magnetic stripe transaction processing as prompted on the terminal screen.

Floor Limits

Floor limits are zero for all card-absent transactions with the exception of prestigious lodging merchants. This means they always require authorization regardless of the dollar amount of the transaction.

Staff Awareness of Authorization Policy

Ensure that all sales staff know your authorization policy.

Staff Training

Instruct staff to authorize only for the check amount. Emphasize that the authorization amount should equal the check amount and exclude any tip percentage.

Make sure your staff is properly trained in chip-capable terminal operation and fallback transaction processing.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

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