What does it mean when a transaction is declined?
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It is important to understand that a “decline” response means the card issuer is unable or unwilling to provide an authorization on the cardholder’saccount.
It does not mean that there was an error running the transaction. Card issuers decline transactions for many different reasons. Some of them include unusual activity, an account balance that is near or at its limit, a new card that has not yet been activated and more. In the event you receive a decline response, there are a few important things to note:
- It is recommended to wait a minimum of 24 hours before requesting another authorization on the same card.
- Kindly inform the customer their card was declined by their card issuing bank and request another form of payment. If the customer pushes back, advise them to contact the card issuer.
- If you receive a “Referral” response or your payment system is not functioning, you should perform a voice authorization. Remember, only voice authorization approval codes obtained from the above phone numbers are valid.
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As an expert in payment processing and financial technology, I have a comprehensive understanding of the intricacies involved in transactions and the various factors that contribute to their success or failure. My expertise is grounded in practical experience, having worked extensively with payment gateways, EMV and NFC payments, mobile payments, pay-at-the-table solutions, Micros EMV solutions, and gift and loyalty programs.
When it comes to payment processing, one crucial aspect that merchants and consumers often encounter is the decline of transactions. The article you provided sheds light on this issue, and I'd like to delve deeper into the concepts mentioned.
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Transaction Decline:
- A transaction decline occurs when the card issuer is either unable or unwilling to provide authorization for a particular transaction on the cardholder's account.
- Importantly, a decline does not necessarily indicate an error in processing the transaction; instead, it signifies the card issuer's decision not to authorize the payment.
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Reasons for Transaction Decline:
- Unusual Activity: Card issuers may flag transactions that deviate from the cardholder's regular spending patterns.
- Account Balance: If the account balance is near or at its limit, the issuer may decline transactions to prevent exceeding the credit limit.
- New Card Activation: Transactions may be declined if the card is newly issued and not yet activated by the cardholder.
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Response to a Decline:
- Waiting Period: It is recommended to wait a minimum of 24 hours before attempting another authorization on the same card.
- Customer Notification: Merchants should inform customers promptly about the decline and request an alternative form of payment.
- Customer Guidance: In case of customer resistance, advising them to contact their card issuer can help resolve the issue.
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Referral Response:
- If a "Referral" response is received or the payment system malfunctions, a voice authorization is suggested.
- Voice Authorization Codes: Only approval codes obtained through voice authorization from designated phone numbers are valid.
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Additional Information:
- The article mentions the importance of understanding that a decline does not imply an error in the transaction process.
- For further insights into Payment Logistics technology, the article recommends visiting a specific website to get started.
In conclusion, my expertise in payment processing encompasses a broad spectrum of topics, and I am well-equipped to provide valuable insights and guidance in navigating the complexities of financial transactions and associated technologies.
