Skip to main content

Visa 11.3 - No Authorization

TL;DR
  • The transaction went through with no authorization at all. That's automatic liability
  • Usual causes: offline terminals, floor limits, a system failure, or voice auth nobody documented
  • Card-not-present has a zero floor limit. Every online sale needs an auth, however small
  • Dispute window is 120 days from the transaction date
  • Fight it only with proof an auth existed. Otherwise pay it and fix the terminal

Transaction was processed without obtaining authorization from the issuer.

Overview​

Every card transaction needs an authorization, and skipping it makes you automatically liable. Offline terminals, floor limits and system failures are the usual causes.

When This Code Applies​

  • No auth request ever went out
  • The sale sat under a floor limit
  • A system failure killed the auth
  • Someone keyed the sale in manually
  • Voice auth happened but nobody documented it

Conditions for Valid Dispute​

Issuer Must Verify​

  1. There's no authorization on file for the sale
  2. You captured and settled it anyway
  3. The cardholder says they didn't approve it

Scenarios​

  • The terminal was running offline
  • The sale fell under a floor limit
  • Paper or backup processing
  • A timeout with no retry

Time Frames​

ScenarioDispute Window
Standard120 days from transaction date

Floor Limits​

Current Floor Limits​

Most card-not-present transactions carry a zero floor limit, so every online sale needs an auth, however small. Set your CNP floor limit to zero and move on.

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​

This one turns entirely on whether an authorization exists, so pull the record before you write a word of rebuttal. No auth on file means a win rate under 10%. Accept the chargeback and fix the terminal instead.

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 - the terminal lost its connection
  2. Floor limit assumption - thinking small amounts don't need auth
  3. System failure - the auth system went down mid-sale
  4. Manual processing - paper backup with no auth code
  5. Incremental transactions - adding to an existing auth

Prevention Strategies​

System Configuration​

  1. Always online - no store-and-forward, no offline mode
  2. Zero floor limit - require auth for all amounts
  3. Auth validation - block any capture that doesn't have a code
  4. Backup procedures - know what to do when auth is down

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 the code before you capture
  4. Fallback alerts - somebody gets paged when a terminal drops

Process Controls​

  1. No paper backup - or strict auth requirements for paper
  2. Voice auth procedures - log the code, the operator and the time
  3. Training - your staff knows an auth is mandatory
  4. Daily reconciliation - catch the missing auths early

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 - you need the operator's approval code
  4. Incremental without new auth - each increment needs its own
  • 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​

Last updated on