Authorize.net issue holding funds?

[allstarlab]

I am using auth.net Aim. If a customer does enter his billing information correctly, it states an AVS mismatch, but the order still goes through to authorize.net as declined. An order is not placed in our system, but when a customer fails an AVS mismatch and then they try again and enter the correct information, it still holds the funds from the mismatch. therefore freezing the customers money on thier card. Is anyone else having this issue? We have lost several customers because of this.

[Kim]

You need to talk to your merchant account folks.

[stevesh]

Many merchant account providers do that. The funds are usually held for 1-3 days. Very frustrating.

[allstarlab]

Yeah I talked to authorize.net and ask them what the point of the AVS system is if it holds the funds. It seems to me, after speaking to a less educated idiot than myself, the bank holds the discretion as they are a processing gateway.

[Kim]

AuthNet is the GATEWAY - you need to talk to the Bank/Merchant Account provider.

[chuck]

If a customer does enter his billing information correctly, it states an AVS mismatch,

Sounds odd to me. Isn't AVS supposed to trigger when the address is *not* entered incorrectly?

We have lost several customers because of this.

Is there something unique to your customers that's causing this problem frequently?

[allstarlab]

While some customers do not have a problem and others do, the only thing that seems to make sense, is the bank/merchant provider themselves based on thier rules for handling transactions. If the AVS system intergrated with zen cart works fine on some but not on others, then I'm lead to believe that the software on this side is working properly. But, we were using oscommerce and could only get auth.net to work in SIM mode only. We built a new website with zencart because of the problem, in which zen seem to work properly. Now we have noticed that it still happens, but not on everyone. It seems that it doesnt matter what type of card, it seems to matter what financial institution they are with. I could be wrong, thats why I am here. I just dont seem to have the rest of the puzzle yet to confirm if thats the root of the problem.

[DrByte]

Which organization is handling your merchant account? Have you talked to them?
Your problem seems to be following you, so I would expect the root is part of something that you've not changed ... and that looks to be the merchant provider you're using.

Another thing to check is ... how long are they holding the funds for? And why is that a problem? Are you dealing with huge transaction amounts where a credit hold essentially locks their account?
And why are you losing customers over this?
As someone mentioned above, is there a particular reason why you have so many customers entering bad addresses?

[allstarlab]

With the exception of a few fraudulant cards, the main issue seems that customers, when entering thier billing information eithier forget to include St, Rd, Blvd, etc. Others have moved and the credit card company and/or bank did not update thier information correctly. According to how AVS is suppose to work, it should not allow the transaction to even be posted to authorize.net. I have simulated this problem, I intentionally entered the wrong address, zencart popped up and sayed AVS mismatch, when i logged into authorize.net to check, sure enough, thiers the order (declined of course) attached with an invoice number, and cross checking the bank, sure enough it held the funds. This shouldn't be happening, it should decline the transaction, without an invoice number and funds should not have been held. Im using the Aim method, using zen 1.3.8.a. If no one else is having this problem, then it has to be something specific regarding our setup, etc. I don't seem to be the only that this is happening to eithier.

[DrByte]

Does it do the same hold on funds if you set your AIM module into "Capture" mode instead of "Authorize" mode?