When the Terminal sends Generate AC-1 or Generate AC-2 Command to the smart card, the card can either approve the cryptogram type requested by the terminal or can decline the transaction by responding with AAC(00) in the response to Generate AC. My question is, can anyone give me some real-time scenarios or examples on what basis the Card declines the transaction by responding with AAC(00) requested by the Terminal?
If the card requires an online authorization and the terminal is unable to go online, the card will decline the transaction.
The process is part of the general Card Risk Management step where, another example, a terminal could request a TC to complete the transaction offline but the card responds with an ARQC because it wants an online authorization.