Longing for the solution to Credit Card Declines? We've Got You Covered!

In today's fast-paced world, credit card transactions are the norm for businesses of all sizes. However, even with the most advanced credit card terminals, merchants occasionally experience the frustrating experience of declined transactions. Understanding credit card decline codes is crucial to business owners who want to streamline payment processes and enhance customer satisfaction. This blog will give a complete overview of the standard credit card decline codes and what they mean and guide merchants in handling such situations effectively.

What Are Credit Card Decline Codes?

Decline codes are credit card processing error messages where a credit card transaction was not processed. Decline codes assist merchants in pinpointing exactly why the credit card transaction declined and, therefore, allow taking proper action. Different payment processors have different decline codes; however, most are industry-wide standardized.

Common Credit Card Decline Codes

1. Card Expired (Code 01): This code indicates that the used card has expired. The merchant should advise the customer to check the card's expiration date and utilize a valid card.

2. Insufficient Funds (Code 05): This code is usually produced when a customer does not have sufficient funds to cover the transaction amount. The merchant should advise the customer to verify their balance or use an alternative payment method.

3. Invalid Card Number (Code 14): The code is received because the card number is invalid or does not match any valid card number. Merchants ensure the customer has keyed in the correct information.

4. Transaction Not Allowed (Code 57) This means the issuer bank does not permit the type of transaction. The merchant should suggest to the customer that they seek further clarification from their bank.

Some other common errors are mentioned below.

01: Refer to issuer

02: Refer to the issuer (exceptional condition)

03: Invalid merchant

04: Pick up card (no fraud)

05: Do not honor

06: Error

07: Pick up card (fraud)

10: Partial approval

12: Invalid transaction

13: Invalid amount

14: Invalid account number

15: No such issuer

19: Re-enter transaction

21: No action taken

25: Unable to locate a record in the file

28: File temporarily not available for update or injury

41: Lost card, pick up

43: Stolen card, pick up

51: Insufficient funds

52: No checking account

53: No savings account

54: Expired card

55: Incorrect PIN

57: Transaction not permitted—card

58: Transaction not permitted—terminal

59: Suspected fraud

61: Exceeds approval amount limit

62: Invalid/restricted service code

63: Security violation

64: Transaction does not fulfill AML requirement

65: Exceeds withdrawal limit

70: PIN data required

75: The allowable number of PIN entry tries exceeded

76: Unsolicited reversal

78: Blocked, first use

79: Already reversed

82: Negative CAM, dCVV, iCVV, or CVV results

85: No reason to decline

86: Cannot verify PIN

91: Issuer or switch unavailable

92: Unable to route transaction

93: Transaction can’t be completed—violation of law

96: System error

97: Invalid CVV

1A: Additional customer authentication required

R0 OR R1: Recurring charge stopped at customer request

Merchant Guide: Handling Declined Transactions

Merchants should handle declined transactions professionally and effectively. The following are some steps to consider:

1. Calm and Professional: A declined transaction can frustrate the merchant and the customer. It is essential to remain calm and create an atmosphere of reassurance.

2. Inform the Customer: The reason for the decline should be communicated to the customer, using the decline code if possible. This makes it easier to gain the customer's trust.

3. Provide Options: If the transaction is declined, offer to use a different form of payment, like cash, check, or another credit card. This can be a deal closer.

4. Recommend calling their bank: If the decline code suggests a problem with the customer's account, advise them to contact their bank for further help.

5. Incident Report: Record declined transactions along with their respective decline codes. This information might help identify trends and possible problems with your payment processing system.

Understanding Credit Card Terminals and Their Importance for Business

Credit card terminals are essential to businesses as they allow smooth transactions. With the increased usage of digital payments, having a credit card terminal can improve customer experience, reduce waiting times, and increase sales. Merchants should choose the right terminal that accepts several payment options and provides adequate security for customers' sensitive information.

Common Reasons for Credit Card Declines

Besides the decline codes mentioned above, there are other general reasons a transaction may decline. These are technical issues on the credit card terminal, network connectivity issues, or the temporary shutdown of the card issuer's systems. Knowing these can help merchants troubleshoot problems quickly and minimize the disruption to their business operations.

Best Practices for Reducing Declines

Some best practices that businesses apply to reduce the occurrence of declined transactions include regularly updating their payment processing software, staffing training on efficient transactional handling, and educating clients on available payment options. Merchants should also review their transaction patterns and fix constant issues with their payment processors.

The Role of Education to Customers

Educating the customer on how to use credit cards can significantly reduce declines. Merchants can educate them on everyday issues, such as ensuring that their card is active and has enough funds. By creating an environment of understanding and support, businesses can improve customer satisfaction and loyalty, increasing sales.

Conclusion

Merchant navigation of credit card declines is difficult, but knowledge of decline codes and their meanings is essential for effectively managing transactions. By using credit card terminals for business and best practices, merchants can minimize declines and offer a better experience to their customers. With the proper knowledge and tools, companies can turn potential frustrations into opportunities for growth and improved customer relations.