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.
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,
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?