Understanding Visa Chargeback Reason Code 11.1: Card Recovery Bulletin
Visa reason code 11.1 flags a payment that used a card appearing on the Card Recovery Bulletin. In plain terms, the merchant skipped or overrode authorisation, accepted a blocked card, and now faces a dispute. Knowing what this code means, why it happens, and how to act quickly can protect revenue and customer confidence.
Key Takeaways
What it means: A transaction went through on a card marked lost, stolen, counterfeit, or invalid.
Causes: The merchant skipped, declined, or ignored authorisation.
How to respond: Gather proof of valid authorisation or a prior refund and submit it in good time.
How to prevent: Request electronic authorisation for every sale, even small ones. Use chargeback alerts to spot risky transactions early.
What is a Visa Reason Code 11.1 Chargeback?
Reason code 11.1 belongs to Visa’s “Authorisation” category. It applies when a merchant processes a payment without proper approval, and the card appears on the Card Recovery Bulletin. This is a list of cards reported lost, stolen, fraudulent, over-limit, or otherwise restricted. In the past, shop staff thumbed through printed booklets to check card numbers.
Today, the authorisation response itself signals if the card is on the bulletin and may even instruct staff to retain the card. If a merchant continues the sale after receiving a warning or processes without approval, the issuer can file a dispute under code 11.1. Unlike many fraud codes, this one rarely hinges on the buyer’s claim. Instead, it relies on an objective check that proves the card should never have been accepted. These chargebacks are typically final unless the merchant proves authorisation was requested and approved.
Primary Causes for a Code 11.1 Chargeback
The surface trigger is simple: the transaction matched a banned account on the Card Recovery Bulletin. The deeper, controllable causes stem from how the payment was handled. The most common situation is merchant error. Some merchants still believe very low-value sales do not need electronic approval. This is incorrect; the bulletin applies regardless of the amount. Staff may have typed a floor-limit override. They may have used the “paper voucher” method during a till outage, or wrongly assumed a verbal authorisation was enough.
A second cause is deliberate fraud—accepting a suspicious card despite a “Do Not Honor” reply, hoping it clears settlement. There are also procedural lapses which cause 11.1 chargebacks. These include terminals left in offline mode or outdated software unable to read bulletin data. Lack of training can also be a factor if cashiers are unaware of authorised response codes. Each of these gaps leads to the same result. The issuer sees the card was barred, debits funds from the acquirer, and the acquirer debits the merchant.
Time Limit for Disputing a Visa Reason Code 11.1 Chargeback
Visa rules give acquirers and merchants a short window to fight this dispute. The issuer must raise the chargeback within 75 days of the transaction. Once it lands, the acquirer generally has 30 days to submit a rebuttal package on the merchant’s behalf. The merchant must supply documentation. This is usually the authorisation log, terminal audit trail, and either a chip PIN validation record or the receipt showing valid approval.
Any delay past the acquirer’s cut-off date can forfeit the right to contest the chargeback. For this reason, merchants should monitor daily dispute reports, respond the same day, and keep all POS data for at least six months. Prompt and well-organised replies are most likely to achieve a successful outcome.
What 11.1 Means for Consumers & Issuers
For cardholders, a dispute under code 11.1 is almost always straightforward. They report a card lost or notice rogue spending, and the issuer sees that the merchant never obtained valid authorisation. The issuer therefore refunds the cardholder swiftly, restoring trust and upholding network rules.
From the issuer’s standpoint, code 11.1 serves as a control mechanism. It penalises merchants who avoid the approval process and keeps compromised cards out of circulation. Because the evidence is objective, issuers spend minimal time investigating. They rely on system logs rather than subjective consumer statements. This efficient approach frees resources to focus on harder-to-prove cases.
What 11.1 Means for Merchants
While some chargebacks stem from buyer disputes over quality or delivery, code 11.1 punishes merchants for bypassing network rules. The financial loss is immediate. It includes the transaction amount, interchange, and often an additional dispute fee. Operational costs can escalate as staff gather paperwork and liaise with the acquirer. Repeat violations can push a business into monitoring programmes, and eventually account termination. Acquirers may label the merchant high-risk, increasing rolling reserves or withholding payouts.
Because issuers see objective proof of non-authorised acceptance, the merchant’s chance of recovery is slim unless they can show the system actually approved the sale. From a risk-management viewpoint, code 11.1 is a wake-up call. It signals weaknesses in POS configuration, staff training, or policy enforcement. Merchants who react by tightening controls not only reduce future disputes but also improve fraud-screening scores. This can lower processing fees over time.
How to Respond to a Code 11.1 Chargeback
First, retrieve the authorisation response, and if the log shows a positive approval code obtained before completion, supply that data. Include the full receipt and, for chip transactions, the EMV application cryptogram. If the sale was later refunded, include the credit receipt or reversal record as proof. In the rare case that the customer withdraws the dispute, get written confirmation and forward it as evidence.
If none of these conditions apply, accept liability. Responding without compelling proof wastes time and can incur extra representment fees. Finally, audit your internal processes to stop repeats. One uncontested loss is cheaper than months of preventable penalties.
Proactive Prevention: The Ultimate Defence
The easiest chargeback to win is the one that never happens. Activate real-time authorisation for every sale, regardless of amount. Keep terminals online, patched, and set to decline any card flagged by the bulletin. Train cashiers to recognise and act on response codes like “Pick Up Card.” For extra protection, try chargeback alerts. These services warn you the moment a dispute arises, letting you refund the customer before a formal chargeback occurs.
