Does CVV/CCV decline still hold the funds in reserve?

[DreamU]

With AVS I know that a decline based solely on AVS rejection still holds the funds in reserve at the bank.

Is this also true with a CVV/CCV based decline? I have two documents from Authorize.net that claim the funds are held but I have tested it and called my bank and do not see the funds reserved after the CVV decline.

[Mimi]

Hey DreamU,

The same holds true for CCV. If the transaction is authorized, but declined for an invalid CCV, then yes, it's still possible that the processor is holding the funds for that authorization. Just as with AVS, the customer is not charged, but their available balance will be decreased. To be 100% certain if the authorization is still there, you'd need to contact the card issuing bank.

Thanks for your question,

Mimi

[CDeCinko]

Is this still the case?  It seems based upon what I saw in the latest sample code, they you could issue an immediate void or refund to cancel out the hold.  What is the current status of this issue?

[TJPride]

You can just change it to decline rather than hold, which should fix the problem I would think. Go into your control panel and look at your AVS / CCV settings.

[CDeCinko]

It is set to decline in my AuthNet settings.  I'm talking about the hold the bank places on the customer's funds.  How can we release those funds when we have no intention of capturing them due to a failed CCV?

[TJPride]

Ok, my previous post was incorrect. Yes, the funds are authorized even if there's a decline. A decline just internally voids the authorized transaction, and it's pretty much up to the bank whether the funds are immediately released or held for an hour or a day or whatever. Maybe reduce your restrictions to just zip code and allow for everything else, maybe with "Report Triggered Filters" so you can follow up on those orders if necessary?

[CDeCinko]

That would be fine if you could verify the card before you ship the item.  But when they are paying online for a service... a bit more tricky.