Definition: What this error dispute means is that an issuer is challenging the validity for a specific card sale because a declined Authorization Response was received by the merchant, and the issuer is unable to collect the amount of the card sale from the card holder in question. In order for the issuer to initiate a request for chargeback, he or she must be able to provide some form of valid and legible proof which will show that the provided authorization response was declined in response to a request for authorization.

Explanation: Authorization was declined.

How to prevent this Chargeback: In order to prevent this type of chargeback from occurring, the best thing that you can do is to attempt to rectify the situation by proving the validity of the card sale in question by providing documentation which shows that the card sale was authorized correctly and that the authorization response was not declined.

How to resolve this Chargeback: In order to resolve this type of chargeback, you must be able to provide proof that the authorization response was not declined in an attempt to prove the validity of the card sale in question.

Tips: Check identification and obtain proper authorization for every credit card transaction that you process. This way, if a dispute arises you have documented proof for every transaction involved. If a transaction authorization request is declined, refuse the card sale rather than trying to collect the amount of the sale anyway.

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