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Visa reason code 11.3: no authorization or late presentment

Visa code 11.3 covers transactions without valid authorization or processed too late. See invalid disputes, defense evidence, and deadlines.

What code 11.3 means and when it applies

Visa reason code 11.3, “No Authorization/Late Presentment,” covers a transaction completed without a valid authorizationAn Approval Response obtained under Visa’s rules for the transaction and the amount submitted for authorization. or processed too late. In the standard cases, the issuer, the bank that issued the card, must show at least one of these three situations:

  1. Authorization was required but not obtained. The merchant completed the transaction without the approval Visa required.
  2. Authorization was obtained, but the transaction was processed outside the timeframe. The acquirer, the institution that represents the merchant in the Visa network, presented the transaction after the applicable window.
  3. Authorization was not required, but the transaction was processed outside the timeframe. Even without an obligation to request approval, the acquirer missed the processing window.

Source for the three situations: Visa Core Rules §11.8.3.1, Table 11-46 (ID# 0030270).

When authorization was obtained for less than the transaction amount, the dispute is limited to the amount not authorized or the difference between the transaction amount and the amount for which Visa required authorization. If the transaction was chip-initiated and approved offline, the dispute is limited to the amount above the Floor LimitThe value threshold that applies to a transaction. Under this code, an offline chip approval does not protect the amount above that threshold.. A dispute may also cover a transaction whose Clearing RecordThe record the acquirer sends after the purchase to present the transaction to Visa and calculate settlement among the participants. contains an ARQCAn Authorization Request Cryptogram is the code the chip creates to request online authorization. Its presence in the Clearing Record does not prove that the issuer approved the transaction., but the issuer or its agent did not authorize the transaction online.

Source for the amount limits and the ARQC rule: Visa Core Rules §11.8.3.2, Table 11-47 (ID# 0030271).

Code 11.3 also covers two types of ATM adjustment. For an ATM Deposit adjustment, both conditions must be true: the account was flagged Closed or Credit Problem, and the adjustment was processed more than 10 days after the Transaction Date. For an ATM Cash Disbursement adjustment, the account status and delay are also cumulative: the account was flagged Closed, Credit Problem, or Fraud, and the adjustment was processed after 10 days. For domestic ATM Cash Disbursements, the limit is 4 days in India and 3 days in Nepal. For U.S. domestic transactions, the cash-disbursement rule also includes an adjustment of a PIN-Authenticated Visa Debit Transaction.

Source for the ATM situations: Visa Core Rules §11.8.3.1, Table 11-46 (ID# 0030270).

Even when a filing ground exists, the dispute is invalid if at least one of these conditions applies:

  1. The transaction was a Mobile Push PaymentA Visa transaction the cardholder initiates on a phone or other mobile device to pay for goods or services or to move money..
  2. It was a Credit Transaction in an excluded business category. This exception requires all of the following: authorization was required, authorization was not obtained, and the transaction used one of these MCCsA Merchant Category Code identifies the merchant’s primary business activity in the payment network.: 3000–3350, 4111, 4112, 4131, or 4511, covering the airline and transportation activities Visa lists.
  3. It met the Europe Visa Drive Card exception. This condition requires all of the following: authorization was required and not obtained; the card was an “extra” card linked to a Privately Contracted AgreementA private contractual agreement associated with the card. The Europe exception applies only when the Visa Drive Card “extra” card has this link.; and the MCC was 4784 for tolls and bridge fees or 7523 for parking lots, meters, and garages.

Source for the three invalidity conditions: Visa Core Rules §11.8.3.3, Table 11-48 (ID# 0030272).

For transactions completed on or after April 13, 2024, Visa folded late presentment into 11.3. The former 12.1 condition applies only to transactions completed through April 12, 2024. A current case involving processing outside the applicable timeframe therefore arrives as 11.3, not 12.1.

Source for the change: Visa Dispute Management Guidelines for Visa Merchants, Conditions 11.3 and 12.1, pp. 28–29, and Visa Core Rules §11.8.3.

Deadlines for each party under Visa 11.3

1 block represents 5 calendar days.

  1. IssuerFile the 11.3 disputeThe clock starts when Visa processes the transaction.
    Up to 75 calendar days
  2. AcquirerSubmit a defense path allowed by VisaThe clock starts when Visa processes the dispute.
    Up to 30 calendar days
  3. IssuerRespond to the acquirer’s defenseThe clock starts when Visa processes the acquirer’s defense.
    Up to 30 calendar days
  4. AcquirerAsk Visa to decide the caseThe clock starts when Visa processes the issuer’s response.
    Up to 10 calendar days
These are the time limits set by Visa.Your deadline to submit documents may be shorter; confirm it with your acquirer.Source:Visa Core Rules, Tabelas 11-49 (ID# 0030273) e 11-1 (ID# 0030212)

Who files the dispute and what happens next

The issuer files the 11.3 dispute in VROLVisa Resolve Online is the system where the issuer files the dispute and the acquirer submits the documents and requests for the case.. The 11.3 tables do not require a cardholder letter or statement. The dispute depends on authorization records and processing dates.

When filing any 11.3 dispute, the issuer must certify that, on the Dispute Processing DateThe date Visa processes the dispute filing. It starts the acquirer’s window to submit a Pre-Arbitration Attempt., the account was flagged Credit Problem, Closed, or Fraud. The Fraud status does not apply to an ATM Deposit Adjustment. This certification is a filing requirement in Table 11-50; it is not a fourth invalidity condition under Table 11-48.

Source for the certification: Visa Core Rules §11.8.3.5, Table 11-50 (ID# 0031082).

Generally, the issuer has 75 calendar days from the Transaction Processing DateThe date Visa processes the transaction. It generally starts the issuer’s 75-day window to file an 11.3 dispute.. For a U.S. domestic ATM Cash Disbursement adjustment or PIN-Authenticated Visa Debit adjustment, the 75-day clock runs from the Transaction Date of the adjustment. The same adjustment-date clock applies to domestic ATM Cash Disbursement adjustments in India and Nepal.

An 11.3 dispute has no separate representment stage. After the dispute is filed, the acquirer accepts financial responsibility or submits a Pre-Arbitration AttemptA formal request from the acquirer asking the issuer to reconsider the dispute before the case goes to Visa for a decision. within 30 calendar days. The issuer has 30 days to respond. If the case remains unresolved, the acquirer has 10 days to request Visa Arbitration. The merchant gives its records to the acquirer; it does not respond directly to Visa.

Source for the filing deadline: Visa Core Rules §11.8.3.4, Table 11-49 (ID# 0030273). Source for the process and other deadlines: Visa Core Rules §11.2.2, Table 11-1 (ID# 0030212), and §11.3.1.

Before building a defense, check whether this dispute is invalidProving any one condition is enough to challenge the dispute's validity.
  • The transaction was a Mobile Push Payment.
  • Authorization was required but not obtained, and the transaction was a Credit Transaction with one of these MCCs: 3000–3350 (airlines and air carriers), 4111 (local and suburban commuter passenger transportation, including ferries), 4112 (passenger railways), 4131 (bus lines), or 4511 (airlines and air carriers not elsewhere classified).
  • Europe only: authorization was required but not obtained, the Visa Drive Card was an "extra" card linked to a Privately Contracted Agreement, and the MCC was 4784 (tolls and bridge fees) or 7523 (parking lots, meters, and garages).

Source:Visa Core Rules §11.8.3.3 — Invalid Disputes, Tabela 11-48 (ID# 0030272)

How to reduce the risk of this code

Visa recommends three direct measures:

  1. Obtain the required authorization before completing the transaction. Keep the request, the Approval Response, the authorized amount, and the date.
  2. Train staff to handle payment-terminal problems. A terminal failure does not allow staff to complete the sale without following the correct procedure.
  3. Send the completed transaction to the processor as soon as possible. Visa recommends doing so on the day of the sale or within the timeframe in the merchant agreement.

Source for the prevention measures: Visa Dispute Management Guidelines for Visa Merchants, Condition 11.3, p. 28.

The maximum processing timeframe starts on the date of a valid authorization. Under the general schedule, a cardholder-initiated card-absent transaction has 10 calendar days, or 30 days when it has an extended Authorization indicator. Cruise, lodging, and vehicle rental transactions with an Estimated Authorization indicator have 30 days; the other rental categories Visa lists with that indicator have 10 days. All other card-present transactions and all merchant-initiated transactions have 5 days. The last group includes recurring transactions, advance payments, unscheduled credential-on-file transactions, and installment transactions.

Some countries have their own timeframes. Before challenging a late-presentment dispute, confirm the transaction type, the region, and the two dates used in the calculation. Showing that authorization existed is not enough: the acquirer must also show that it processed the transaction within the correct window.

Source for the processing timeframes and calculation: Visa Core Rules §5.7.3.5, Tables 5-12 and 5-13 (ID# 0031022).

If the transaction used estimated and incremental authorizationThe first authorization reserves an estimated amount. Incremental requests increase that amount during the same transaction, as may happen with lodging or vehicle rental., keep the complete chain under the same identifier. A missing indicator, authorization, or date prevents the certification required for this type of case.

Evidence the merchant needs to gather for a defense

Review my evidence

The merchant gives its documents to the acquirer, which submits them in VROL through a Pre-Arbitration Attempt. Table 11-51 requires proof of at least one of these four paths:

  1. Credit or reversal not addressed by the issuer. Provide proof of the returned amount, the processing date, identification of the transaction, and evidence that the issuer did not address the credit or reversal in the dispute.
  2. Invalid dispute. Prove at least one of the three conditions in Table 11-48: a Mobile Push Payment; a Credit Transaction with one of the excluded MCCs and all other requirements; or the Europe Visa Drive Card exception with all its requirements.
  3. Wrong Transaction Date in the Clearing Record. Both core records are required: the document showing the correct Transaction Date and the record showing that a valid authorization was obtained. The corrected date must place processing within the applicable window.
  4. Receipt or record that disproves late presentment. The same receipt or record must provide a Transaction Date that places processing within the timeframe and show that the acquirer obtained the required authorization.

Source for the four paths and the logic among them: Visa Core Rules §11.8.3.6, Table 11-51 (ID# 0030274). Source for the amount and date of the credit or reversal and the record guidance: Visa Dispute Management Guidelines for Visa Merchants, Condition 11.3, p. 28.

Visa’s merchant guide starts with evidence that the transaction was authorized online or offline through the chip. In the Core Rules, however, an approval record by itself is not a fifth path. It must support one of the Table 11-51 paths, such as correcting the Transaction Date or providing a receipt that also disproves late presentment.

If the case involved estimated authorization followed by incremental authorizations, an additional requirement applies. In addition to proving one of the four paths, the acquirer must provide all of these items: the Estimated Authorization Request indicator in the first request; the Incremental Authorization Request indicator in later requests; the same Transaction Identifier in every request; Clearing Records submitted within the applicable timeframes; the transaction initiation and completion dates; and the dates, amounts, and codes for all approved authorizations. This layer applies only when the special procedure was used.

Source for the additional layer and all its requirements: Visa Core Rules §11.8.3.6, Table 11-51 (ID# 0030274).

CE3.0Compelling Evidence 3.0 is Visa’s mechanism for matching the disputed transaction to earlier purchases under code 10.4. It does not apply to 11.3. does not replace this evidence. Under 11.3, delivery receipts, usage history, and other fraud evidence do not by themselves show that authorization existed or that the transaction was processed on time.

Source for the scope of CE3.0: Visa Compelling Evidence 3.0 Merchant Readiness, p. 1.

Frequently asked questions

When does an issuer use Visa chargeback code 11.3?

The issuer files an 11.3 dispute when at least one of these situations occurs: valid authorization was required but not obtained; valid authorization was obtained, but the transaction was processed outside the applicable timeframe; or authorization was not required and the transaction was also processed outside the applicable timeframe. The code also covers specific ATM adjustments.

Is Visa code 12.1 (Late Presentment) still valid?

Only for transactions completed through April 12, 2024. For transactions completed on or after April 13, 2024, Visa folded late presentment into 11.3 and renamed the condition from "No Authorization" to "No Authorization/Late Presentment."

Does an 11.3 dispute allow second presentment?

No. An 11.3 dispute moves to an acquirer Pre-Arbitration Attempt without a separate Dispute Response stage. The acquirer has 30 calendar days, the issuer has 30 days to respond, and the acquirer has 10 days to request Arbitration if needed.

How long does the issuer have to file an 11.3 dispute?

Generally, the issuer has 75 calendar days from the Transaction Processing Date. For certain adjustments in the United States, India, and Nepal, Visa counts from the Transaction Date of the adjustment instead.

How soon must a transaction be processed to avoid late presentment?

The timeframe depends on the transaction type. The general limits are 10 calendar days for a cardholder-initiated card-absent transaction, or 30 days with an extended Authorization indicator; 30 days for cruise, lodging, and vehicle rental transactions with an Estimated Authorization indicator; 10 days for the other rental categories Visa lists with that indicator; and 5 days for all other card-present and merchant-initiated transactions. Country-specific rules may differ.

Can I use CE3.0 to defend an 11.3 chargeback?

No. CE3.0 applies to code 10.4, Other Fraud–Card-Absent. An 11.3 defense depends on authorization records, the Transaction Date, the applicable processing timeframe, any credit or reversal, and Visa’s express invalidity conditions.

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