This is a common issue and caused by many of the processors/banks conducting the balance check when processing a transaction at the wrong stage of the transaction.


Issuers initially allowing CVV mismatch to authorize.


The correct sequence should (among other steps) include

  • Check account number
  • Check CVV
  • Check available balance
  • Reserve transaction amount
  • Send SMS notification

 

What some of the issuing banks actually seem to do is:

  • Check account number
  • Check available balance
  • Reserve transaction amount
  • Send SMS notification
  • Check CVV

 

Meaning the balance is reserved, send the SMS notification to the customer, and then decide that actually, they are not going to go ahead with the transaction, because of a CVV mismatch. It’s too late at that point. And because they finally reject the transaction due to CVV there is no option for PayTabs to reverse it (as there is no transaction to reverse) so any amount reserved can’t be released and we have to wait for the issuing bank themselves to automatically release it after a few days.

The funds are never actually debited from the account, but they can have a hold put on them making them unavailable for other transactions. Customers get a notification of transactions via SMS even though we get a decline result. The transaction could even show up in their statement as a pending authorization.

What to do next:
Cardholder to follow up with Card Issuing bank and check the status of this pending authorization.