Does an Authorization Code prevent Chargebacks?
No. This is a common misconception. For many reasons, an authorization code does not guarantee payment to a merchant or prevention of chargebacks. An authorization is approval given by the card-issuing bank to validate a transaction for the merchant bank. Even with an authorization code, a chargeback can occur if, for examples, the cardholder did not receive merchandise, the merchandise is not as described, or the card was charged multiple times for the same transaction.
