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Visa 11.2 - Declined Authorization

Transaction was processed even though the authorization request was declined by the issuer.

Overview​

When a merchant receives a decline response and processes the transaction anyway, full liability falls on the merchant. This is one of the most clear-cut chargeback scenarios.

When This Code Applies​

  • Authorization returned a decline response
  • Merchant processed despite decline
  • Staff override of decline decision
  • System processed without auth response

Conditions for Valid Dispute​

Issuer Must Verify​

  1. Authorization request was sent
  2. Decline response was returned
  3. Transaction was still processed
  4. Cardholder did not authorize

Response Codes That Decline​

CodeMeaning
05Do not honor
14Invalid card number
51Insufficient funds
54Expired card
57Transaction not permitted
62Restricted card
63Security violation

Time Frames​

ScenarioDispute Window
Standard120 days from transaction date

Representment Options​

Very limited options:

1. Authorization Was Approved​

Evidence required:

  • Auth approval code
  • Full auth request/response log
  • Network transaction records
  • Timestamp matching

2. Different Transaction​

Evidence required:

  • Transaction IDs don't match
  • Declined and processed are separate transactions
  • Approved auth for processed transaction

3. Technical Error​

Evidence required:

  • System logs showing error
  • Processor confirmation of auth issue
  • Proof of good faith processing

Why This Happens​

Common Causes​

  1. Staff override - "Just run it through"
  2. System timeout - Assumed approval
  3. Multiple attempts - Wrong auth matched
  4. Manual entry - Bypassed auth system
  5. Offline processing - Terminal stored and forwarded

Prevention Strategies​

System Configuration​

  1. No decline override - Block staff from forcing
  2. Auth matching - Verify approval before capture
  3. Timeout handling - Don't assume approval
  4. Online-only mode - Disable offline processing

Staff Training​

  1. Decline = No sale - No exceptions
  2. Multiple attempts - Each needs fresh auth
  3. Response code awareness - Know what codes mean
  4. Escalation path - Who to call for edge cases

Process Controls​

  1. Auth-capture matching - System validation
  2. Decline logging - Track all declines
  3. Override audit - Flag any bypasses
  4. Daily reconciliation - Catch mismatches

Win Rate Expectations​

Defense TypeExpected Win Rate
Proof of approval (with code)85-95%
Processing error (good faith)30-50%
Override was performedUnder 5%

Common Mistakes​

  1. Running declined card multiple times - Each decline is a violation
  2. Voice auth without actual approval - Must get real approval
  3. Assuming system error means approved - Never assume
  4. Staff bypassing for "good customers" - Still liable
  • 11.1 - Card Recovery Bulletin
  • 11.3 - No Authorization
  • 12.1 - Late Presentment

Next Steps​

Got this chargeback?

  1. Check auth logs → Did you get a valid approval code?
  2. Verify no "force" or override was used → Staff bypassed decline?
  3. If you processed after decline → Accept the chargeback (no defense)

Prevent future 11.2 chargebacks:

  1. Never process transactions after decline response
  2. Train staff to accept "no" from the authorization system
  3. Use proper retry logic for soft declines only
  4. Review auth optimization

See Also​