Discover Reason Code NA

Discover Chargeback Reason Code NA: No Authorization

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Description

The buyer’s bank received a transaction for which the authorization was not obtained. The reasons of such code could be- not obtaining an authorization for a transaction or, for card present or obtaining it after the date of transaction. The buyer’s bank may only put a chargeback for the amount exceeding the transaction date. This chargeback occurs when goods and services did not obtain authorization for the particular transaction exceeding the goods and services’ Floor Limit. This chargeback may be inverted, if the merchant provides sufficient information such as the transaction date, a valid authorization code or a proof that a credit was issued. On the other hand, this chargeback can be avoided by obtaining an authorization code and date for each transaction processed.

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Most Common Causes

The merchant:

• The goods and services did not obtain an authorization on present card, or a transaction was made after the authorization code and transaction date.
• The limited authorization index was present in the Authorization Request
• The transaction amount does not exceed the amount in the limited Authorization response.
• Transaction amount of authorization and Authorization code along with date, if other than the transaction amount and transaction date.
• The merchant should request an authorization for the known amount along with the estimated tip. The vendor did not exclude the tip in the authorization amount.

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Evidence Required

• Transaction Was Authorized: If authorization license was accessed, inform the bank of the transaction date and amount.
• Transaction Was Not Authorized: If authorization license was not accessed, accept the chargeback.
• Obtain an Authorization:Obtain an authorization before finishing the transaction. When the card is swiped and dollar amount is entered, an authorization request is sent. A certificate is then printed if the transaction is accepted; if it is not accepted, the merchant receives a failure message at point of sale.
• Magnetic-Strip Reader Down or Card Magnetic-Stripe Damaged: If you are not able to get an electronic authorization because your terminal is not working or because the cards magnetic stripe cannot be read, it is always advisable to call authorization center or request an authorization by entering the card details manually. If the transaction is accepted, be sure that the approval code is on the receipt at the correct space and in the case of a voice authorization, the merchant would have to write it on the receipt.
• Point-of-Sale Terminal Programming: Find out from your point-of-sell out provider if the authorization system has been working properly and that it is accepting the amount before including tip.

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Prevention

• Obtain an authorization confirmation before completing transactions. The authorization request is sent automatically when you swipe the card and enter the amount. An acknowledgment is printed if the transaction is approved and if it’s not, you will receive a Pick Up message, Call Center or decline on your terminal.
• Do not include the tip in your authorization application. Make sure that the authorization amount is equal to the check amount and the tip is rejecting. So if the bill before tip is for $70.00, an authorization should be requested for $70.00. Contact your point of sell out dealer and make sure that your point of sell out terminal has been register to authorize only for the check amount before the tip is added.
• You are not able to receive an electronic authorization because the cards magnetic stripe is not reading. You can obtain an authorization by either way, by key-entering the transaction information or calling your voice authorization center. If your request is approved, make sure that the approval code is on the sales acknowledgment. If you obtained a voice authorization, write the approval code on the acknowledgment. Take an imprint of the face of the card on the acknowledgment and have the customer sign it.

Common Examples:

1. Linda went to a restaurant to have dinner with her friends. Her share of amount came down to $40 on which she gave a tip of $8. When she goes back home and receives an email from her bank stating $56. She gets confused and disputes the amount under the Reason Code NA: No Authorization.
   The merchant or the processor here added the tip amount and the top of that the tip amount was again added the actual tip making it to $58 instead of $48.
2. George went to purchase a coffee at a coffee shop, but there was an error processing his card. His card was a little withered that made his magnetic chip difficult to go through. So the merchant had to manually type the amount. Instead of $2, the merchant entered $20 and did not receive authorization. He checks his account later in the day and finds out about the blunder and disputes the amount under the Reason Code NA: No Authorization.

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