A02

Amex reason code A02: No valid authorization

A02 means the charge went through without a valid approval. Here is why it happens and what to send back.

Network
American Express
Published

What is Amex reason code A02?

Amex reason code A02 is No valid authorization. It sits in the Authorization group of American Express dispute codes.

A02 means the charge had no valid authorization because it was declined or the card was expired. In plain terms, the sale hit the cardholder's account without a real approval behind it.

Why you got an A02 chargeback

A few things lead here. The most common ones are:

  • You forced a sale through after the card was declined.
  • You ran a charge on a card that had already expired.
  • You keyed in the card details by hand and skipped the approval step.
  • Your system took the payment without asking the network for an approval code.

The cardholder sees a charge they do not recognize as a valid sale. They call Amex, and the dispute starts.

How the dispute moves before it reaches you

A disputed charge is first worked on with the Card Member before the merchant is contacted. If more information is needed, the merchant receives either an Inquiry or a Chargeback.

A merchant gets an Inquiry when a Card Member disputes a charge that cannot be resolved with the documents on file. If the Card Member gives enough information, the merchant's account may be debited upfront.

If your reply settles the dispute on time, there is no Chargeback. So an Inquiry is your first and best chance to end the case early.

How to respond to an A02 chargeback

After a Chargeback, the merchant can send supporting documents that might reverse it. The Chargeback is undone if the merchant's reply addresses the dispute successfully and on time. If you do not reply in time, or you leave out what was asked for, the Chargeback stands.

What should the reply hold? A merchant's supporting documents should include a copy of the charge record or credit record. A good reply explains the documents, addresses the specific dispute reason and describes the steps taken to resolve it.

For an expired card claim, you have one clear out. You can show the charge was made before the card's expiration date. A copy of the charge record with the date on it can settle that point.

The best way for a merchant to respond to a dispute is online through its Merchant Account. If you are not sure what your notice is asking for, start with how to read a chargeback notice.

How to prevent A02 chargebacks

Prevention here is simple and strict:

  • Never force a sale after a decline. A decline means no. Take another card or end the sale.

  • Check the expiration date before you run the card. An expired card should not go through.

  • Get an approval code for every charge, every time. No code, no sale.

  • Train staff on keyed entries. Hand keyed sales skip steps, and skipped steps cause A02.

  • Fix payment setup errors. If your terminal takes money without asking for approval, that is a fault to repair fast.

Other networks have codes that cover the same ground. Visa used to sort these under old numeric codes, and merchants still see them in older case files.

Once you send your reply, the case may still have rounds left. See what happens after you answer a chargeback for what comes next.

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