Skip to main content

Visa 11.3 - No Authorization

Transaction was processed without obtaining authorization from the issuer.

Overview​

Every card transaction requires authorization. Processing without auth creates automatic liability for the merchant. This commonly occurs with offline terminals, floor limits, or system failures.

When This Code Applies​

  • No authorization request sent
  • Transaction below floor limit (if applicable)
  • System failure prevented auth
  • Manual transaction without auth
  • Voice auth not properly documented

Conditions for Valid Dispute​

Issuer Must Verify​

  1. No authorization on file
  2. Transaction was processed
  3. Cardholder did not authorize

Scenarios​

  • Offline terminal processing
  • Floor limit transactions
  • Backup/manual processing
  • System timeout without retry

Time Frames​

ScenarioDispute Window
Standard120 days from transaction date

Floor Limits​

Current Floor Limits​

Most card-not-present transactions have zero floor limit meaning all transactions require authorization.

Transaction TypeTypical Floor Limit
E-commerce$0 (auth required)
Card-present$0-$25 (varies)
Some hospitalityHigher limits may apply

Floor Limit Rules​

  • Zero floor limit is standard for CNP
  • Even small transactions need auth
  • Floor limits are processor/acquirer dependent
  • Airlines and hotels have special rules

Representment Options​

Limited options:

1. Authorization Was Obtained​

Evidence required:

  • Authorization code
  • Auth request/response logs
  • Network records
  • Matching timestamps

2. Voice Authorization​

Evidence required:

  • Voice auth approval code
  • Call recording (if available)
  • Operator reference number
  • Time and date of call

3. Special Circumstances​

Evidence required:

  • System outage documentation
  • Processor confirmation
  • Good faith processing proof

Why This Happens​

Common Causes​

  1. Offline mode - Terminal not connected
  2. Floor limit assumption - Thinking small amounts don't need auth
  3. System failure - Auth system down
  4. Manual processing - Paper backup without auth
  5. Incremental transactions - Adding to existing auth

Prevention Strategies​

System Configuration​

  1. Always online - No offline processing
  2. Zero floor limit - Require auth for all amounts
  3. Auth validation - Block capture without auth
  4. Backup procedures - Have proper offline protocol

Technical Controls​

  1. Real-time monitoring - Know when auth is down
  2. Queue and retry - Don't skip auth, wait for it
  3. Auth code validation - Verify before capture
  4. Fallback alerts - Notification when offline

Process Controls​

  1. No paper backup - Or strict auth requirements for paper
  2. Voice auth procedures - Documented process
  3. Training - Staff knows auth is mandatory
  4. Daily reconciliation - Catch missing auths

Win Rate Expectations​

Defense TypeExpected Win Rate
Proof of authorization85-95%
Voice auth documented60-80%
No authorization on fileUnder 10%

Common Mistakes​

  1. Assuming offline is okay - It's not for CNP
  2. Floor limit misunderstanding - Zero floor limit is standard
  3. Voice auth without code - Need actual approval code
  4. Incremental without new auth - Each increment needs auth
  • 11.1 - Card Recovery Bulletin
  • 11.2 - Declined Authorization
  • 12.1 - Late Presentment

Next Steps​

Got this chargeback?

  1. Pull authorization logs → Was auth actually obtained?
  2. Check for voice auth → Do you have an approval code?
  3. Verify system records → Auth request/response logs?
  4. If no auth exists → Accept the chargeback (limited defense)

Prevent future 11.3 chargebacks:

  1. Never process without authorization
  2. Set zero floor limits for CNP transactions
  3. Implement queue-and-retry for system outages
  4. Review authorization basics

See Also​