Understanding Visa Chargeback Reason Code 11.3: No Authorisation
Visa Reason Code 11.3 flags transactions that reach clearing without a valid authorisation approval. The dispute often arises after an issuer or a cardholder questions the payment. As the authorisation process protects revenue for all parties, skipping it can trigger costly chargebacks and fees.
Key Takeaways
What it means: A payment was processed without a correct, timely, or sufficient authorisation.
Causes: Missing approval, approval for the wrong amount, or late submission to clearing.
How to respond: Gather proof of a valid approval or refund. If none exists, accept the dispute.
How to prevent: Follow Visa authorisation rules. Keep terminals updated. Try out chargeback alerts.
What is a Visa Reason Code 11.3 Chargeback?
A Reason Code 11.3 chargeback usually arises when a merchant submits a transaction to clearing without the issuer’s “Approved” response. It can also occur when a transaction is submitted outside the permitted time window. Visa labels the dispute “No Authorisation/Late Presentment”. In practical terms, the issuer is stating that they never assured you the card was in good standing for that amount, so the liability rests with you. The rule covers card-present and card-absent sales, including telephone, mail order, and e-commerce.
Authorisation is the main protection against card fraud. Bypassing it removes a key safety net. Issuers, therefore, have the right to reclaim funds when authorisation procedures are not followed. Merchants who rely on floor-limit exceptions or override terminal warnings put themselves at risk.
Primary Causes for a Code 11.3 Chargeback
The most common cause of an 11.3 chargeback is simple: the merchant never requested approval before completing the sale. Or, approval was obtained but for an amount lower than the final transaction. An example would be adding a tip without submitting a new request. The merchant may gain approval, but upload the clearing file after the processing time limit. In this case the original approval has technically expired. This chargeback can also occur if a transaction falls under a floor-limit exemption, but the merchant submits it late.
Busy staff, terminal outages, or a persuasive customer often lead to these mistakes. In rare cases, a fraudster may pressure the cashier to bypass authorisation so the card is not blocked. Whatever the explanation, the root cause is a break in the required approval flow, leaving the merchant liable.
Time Limit for Disputing a Visa Reason Code 11.3 Chargeback
Issuers have up to 75 calendar days from the processing date to raise a dispute under code 11.3. Once the chargeback arrives, the acquirer or the merchant must submit a response within 30 days. Missing that deadline means an automatic loss, even if evidence exists. There are also variable time limits that apply to the original sale.
Visa allows a limited window between authorisation and clearing, depending on transaction type. This is five days for most card-present or merchant-initiated transactions. For cardholder-initiated online sales, it extends to 10 days. And for sectors such as lodging, cruise, or car hire, the timeline is longer, at 30 days. If a merchant exceeds those timeframes, the approval is treated as lapsed, and the issuer can file code 11.3. Merchants using batch processing should therefore review upload schedules to avoid breaches. Setting automated alerts in the payment gateway can help keep submissions within the timeframe.
What 11.3 Means for Consumers & Issuers
For consumers, this code offers protection against unauthorised or mishandled payments. If a cardholder sees a charge they do not recognise, they can ask the issuer to investigate. If no valid approval exists or if the clearing file arrived late, the issuer will initiate a chargeback under 11.3 to recover funds.
Issuers also use the rule to ensure responsible merchant behaviour. By shifting liability to businesses that skip required checks, banks reduce losses. Another benefit is ensuring authorisation data is up to date and accurate. The process is mostly automated, so issuers incur minimal cost when raising a dispute. However, merchants who cut corners pay the price through lost revenue and processing fees.
What 11.3 Means for Merchants
From a merchant’s perspective, code 11.3 is a red flag. It can indicate that internal processes are not operating as they should. Overturning the chargeback is only possible when evidence shows the approval did exist. If this proof cannot be produced, the chargeback will remain in effect. Repeated occurrences may lead acquirers to raise fees or impose risk-management programmes. Disputes waste staff time and can damage brand reputation if cardholders see the business as untrustworthy.
On the positive side, 11.3 chargebacks are entirely avoidable by sticking to authorisation procedures. Upgrading POS software and training staff to refuse “forced” transactions helps to protect revenue.
How to Respond to a Code 11.3 Chargeback
First, verify whether a valid approval was actually obtained. If it was, request the authorisation log from your gateway or processor. Submit the reference number, response code, approved amount, and date as evidence through your acquirer. Confirm that the clearing record uses the same transaction identifier; mismatched IDs will weaken your case. If you have already refunded the cardholder, provide proof of the credit with dates and amounts so the dispute can be dismissed as resolved.
Throughout the process, keep communication clear and factual and respond promptly. Accurate, well-organised and timely data is your best tool to fight these chargebacks. Responding early also limits the risk of second-cycle disputes, which can take up additional time to address. However, if no approval exists, it's best to accept the chargeback promptly. Instead, focus on preventative strategies to avoid these types of chargebacks in future.
Proactive Prevention: The Ultimate Defence
Avoiding code 11.3 is straightforward. Always obtain an approval, stick to the Visa time frames, and never override terminal warnings. Regular staff refresher sessions with clear scripts for declined responses can help. You should also upgrade to terminals that block “force” options if you haven't yet done so. For additional protection against chargebacks, try out Chargeback.io.
