Visa introduced new Global Scheme Rules in 2015 to regulate the number of authorization requests permitted for certain types of transactions. These new rules also prohibit re-submitting a declined transaction if particular Decline responses are received.
Chargify will attempt to retry your customer’s credit card every 24 hours for a set number of days (based on your dunning settings) if we receive a response from your payment gateway indicating that the transaction has failed. If the card cannot be successfully charged, the subscription status will change to Canceled or Unpaid, depending on your settings. At this point, Chargify will stop attempting to collect payment on your behalf.
These new rules have left our merchants with a number of questions regarding how this will affect Dunning.
- How many times am I allowed to retry within a certain number of days?
- What types of response codes allow me to retry the card?
- What response codes do not allow me to retry the card?
Visa states that a Preauthorization Transaction that receives one of the following Decline Responses may be resubmitted for Authorization, in an attempt to receive approval, up to 4 times within 16 calendar days from the date of the original Decline Response:
- Response Code - Authorisation Declined
- Response Code - Insufficient Funds
- Response Code - Exceeds approval amount limit
- Response Code - Exceeds withdrawal frequency limit
Chargify does not currently support 'Preauthorized Transactions', so this section would not apply to us or our merchants.
However, Chargify must adhere to the rules governing ‘Resubmitting Transactions’:
According to Visa, a transaction must not be resubmitted for Authorization if the transaction receives a Pickup Response or, one of the following Decline Responses:
- Response Code - Expired card
- Response Code - Invalid account number (no such number)
- Response Code - Transaction not permitted
If your merchant bank contacts you regarding these rules, you can be confident you adhere to the Visa rules
If you have any questions or concerns, please feel free to contact firstname.lastname@example.org.