Thread: Transaction error leads to pending transaction for credit cards?

I am currently using Authorize.net as the gateway.

When a transaction is process and returns with an error, such as AVS mismatch or transaction has been declined, does this put a pending transaction amount (hold) on the credit card? If so, is there a way where I can validate the card first prior to processing the card to ensure that the card is valid?

It wouldn't look good on our part if the customer has several transaction entries in their bank account because of their attempts to process the order.

Yes, if the transaction fails for someting like AVS it does put a pending charge (hold) for that amount. If they attempt 10 times, it holds that amount x 10. It is crazy but that is how it works. We get customers always calling asking why we charged them even though it declined. Bottom line is the pending charge will come off their account in 24-48 hours but they can get it off immediate if they contact their bank.

Unfortunately that's the way the majority of the gateways/banks handle it, yes. Most of them even do the same thing if you try a debit transaction in a store and get your PIN wrong. Like ssgumby said the extra authorizations will roll off, but it can take a while. Sadly, that's all on the bank's end, no way around it.

Thank you for your quick responses ssgumby and Scott!

We are currently using a program called via warp from nova. This application allows us to check the AVS to insure that the billing address matches the card before processing the transaction. Thus, not placing any pending charge (holds) on the card. Does the store have a similar feature available?

Per ssgumby's answer, if the AVS fails on authorize.net, a pending charge will occur. Would be nice if I can validate the billing information first without placing a pending charge.