Visa Chargeback Reason Code 72: No Authorization

The buyer’s bank received a transaction for which the authorization was not obtained. The reasons of such code could be- not obtaining an authorization for a transaction or, for card present or obtaining it after the date of transaction. The buyer’s bank may only put a chargeback for the amount exceeding the transaction date. This chargeback occurs when goods and services did not obtain authorization for the particular transaction exceeding the goods and service’s Floor Limit. This chargeback may be inverted, if the merchant provides sufficient information such as the transaction date, a valid authorization code or a proof that a credit was issued. On the other hand, this chargeback can be avoided by obtaining an authorization code and date for each transaction processed.

The merchant :

• The transaction amount does not exceed the amount in the limited Authorization response.
• The limited authorization index was present in the Authorization Request.
• The goods and services did not obtain an authorization on present card, or a transaction was made after the authorization code and transaction date.
• The merchant should request an authorization for the known amount along with the estimated tip. The vendor did not exclude the tip in the authorization amount.
• Transaction amount of authorization and Authorization code along with date, if other than the transaction amount and transaction date.
• Transaction Was Authorized: If authorization license was accessed , inform the bank of the transaction date and amount.
• Transaction Was Not Authorized: If authorization license was not accessed, accept the chargeback..
• Obtain an Authorization:Obtain an authorization before finishing the transaction. When the card is swiped and dollar amount is entered, an authorization request is sent. A certificate is then printed if the transaction is accepted; if it is not accepted, the merchant receives a failure message at point of sale.

Prevention

• Obtain an authorization confirmation before completing transactions. The authorization request is sent automatically when you swipe the card and enter the amount. An acknowledgment is printed if the transaction is approved and if it’s not, you will receive a Pick Up message, Call Center or decline on your terminal.
• Do not include the tip in your authorization application. Make sure that the authorization amount is equal to the check amount and the tip is rejecting. So if the bill before tip is for $70.00, an authorization should be requested for $70.00. Contact your point of sell out dealer and make sure that your point of sell out terminal has been register to authorize only for the check amount before the tip is added.

Chargeback Visa Reason Codes more detail here – VISA REASON CODES