The merchant processed a transaction without getting a positive authorization response, or a response came after the card’s expiry.
The merchant processed the transaction without voice approval or electronic authorization.
The merchant forced the transaction after receiving a negative authorization response.
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 30 days to respond to the claim in dispute.
Steps to Prevention
Send authorization requests before you process a transaction.
When you get a declined response, terminate the transaction or request a different payment method. You can also send a second authorization request as a confirmation but don’t proceed without authorization.
Check if the card is expired or not. If expired, request an alternate form of payment.
Train your staff on the proper procedures of obtaining and handling authorization.