It’s not uncommon for a transaction to be declined by the payment processor, bank, or card issuer. It is frustrating for both the customer and the merchant when this happens! It delays the purchase, and can often lead to a canceled order.
However, if we do know the most common reasons for declined transactions, we can help to avoid them. In this article, we’ll list some of the most common reasons for declined transactions so you can avoid them in the first place.
You met your credit limits
One of the main reasons why transactions are declined is because the customer has reached their credit limit. This can happen if you’ve made a lot of purchases in a short time, or if you’re trying to make a purchase that is larger than your usual transactions.
If you think you may have reached your credit limit, you can check with your card issuer to see if this is the case. If so, you may need to either pay down your balance or use another form of payment.
The card issuer doesn’t recognize the merchant
Another common reason for declined transactions is that the card issuer doesn’t recognize the merchant. This can happen if the merchant is new, or if they are based in a different country.
It’s not an uncommon occurrence, but it can be frustrating. If this happens, you can try using another card or contacting the merchant to see if they can process your payment another way. However, with good communication, this shouldn’t be a major issue.
Your transaction flagged as a fraud
It happens when you least expect it: your transaction is declined because it has been flagged as fraud. This can happen if you’re making a purchase from a new or unfamiliar merchant, or if you’re using a different card than usual.
If this happens, don’t panic! It’s likely that your card issuer has just put a hold on the transaction to verify that it is legitimate. You can usually resolve this by contacting your card issuer and verifying the transaction.
You entered the wrong details
Sometimes, the simplest explanation is the right one. If your transaction is declined, it could be because you entered the wrong details. This can happen if you accidentally put in the wrong card number, expiration date, or security code.
If this happens, simply double-check the details that you entered and try again. With a little bit of care, you can avoid this issue altogether. The best thing you can do is to save the details of your card on your browser or in a secure password manager so you don’t have to enter them every time you make a purchase.
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Using an expired card
It happens all the time! You try to make a purchase, and your card is declined because it’s expired. This can be a major inconvenience, especially if you’re in the middle of a transaction.
To avoid this issue, be sure to keep track of the expiration date of your card. You can usually find this on the front or back of your card. Alternatively, you can check with your card issuer to find out when your card is set to expire.
Your payment was declined by the payment processor
It’s not uncommon for a payment processor to decline a transaction. This can happen for a variety of reasons, including fraud prevention, insufficient funds, or technical issues.
If your payment is declined by the payment processor, you’ll usually see an error message telling you why. In most cases, you can try again later or use another form of payment. However, if the problem persists, you may need to contact the payment processor or your card issuer for further assistance.
The bank declined the transaction
Similar to payment processors, banks can also decline transactions. This is usually done for fraud prevention or to protect the customer from overspending.
If your transaction is declined by the bank, you’ll need to contact your bank to find out why. They may be able to help you resolve the issue so you can complete your purchase.
Conclusion
Yes, it can be frustrating if your transaction gets canceled. But don’t worry, there are usually a few simple explanations. In most cases, you can try again later or use another form of payment. With a little bit of care, you can avoid declined transactions altogether. Make sure to follow the instructions of your card issuer and keep track of your card details. Thanks for reading!
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Book a free call with us to discuss how we can help you expand in new regions, scale, and get the cash flowing in your business.
