Authorization Reversal Transactions

The primary use of Authorization Reversal transactions is to eliminate any unused amount on an unexpired Authorization. Issuing an Authorization Reversal has the benefit of freeing any remaining held amount that reduces the buying power of your customer. Potentially, this both increases customer satisfaction and can allow them to proceed with additional purchases that may otherwise be blocked by credit limits. It also helps you avoid any misuse of Auth fees imposed by the card associations.

For American Express transactions, the reversal amount must match the authorization amount. American Express does not allow partial reversals and reversals against remaining amounts after a partial capture. Attempts to perform these types of reversals result in a Response Code of 336 - Reversal amount does not match Authorization amount.

For example, consider the following scenario. A customer with a $6,000 credit limit orders a $3,000 stereo system, but the stereo is a discontinued item. The merchant notifies the customer, but does not perform and Authorization Reversal. The customer attempts to submit a new order for a $3,001 stereo.

  • If the customer uses the same credit card for both orders, the second order could be denied, since the account’s remaining credit limit is only $3,000

  • If the customer had used the same debit card for both orders, the second order places the customer’s bank account in an overdraft situation (assuming a starting balance of $6,000)

Either of these situations can result in the merchant losing a sale, as well as receiving a call from an angry customer.

Another advantage of Authorization Reversal transactions occurs on Visa and Mastercard transactions. In order for you to qualify for the best possible interchange rates from Visa/Mastercard, the amount of the Capture must match the amount of the associated Authorization. In order to take advantage of this situation for you, if the Capture amount is less than the associated Authorization amount, Worldpay automatically performs a partial Authorization Reversal for the unused amount (also see Capture Request).